Liquidity Mining

In Neku Finance lending protocol, lenders deposit assets to the lending platform and will receive a corresponding amount of nTokens.

nTokens are interest-bearing tokens that are minted and burned upon “deposit” and “withdraw”. The nTokens also serve as deposit certificates in the Neku lending platform. The nTokens’ value is pegged to the value of the corresponding deposited assets at a 1:1 ratio. (Number of nTokens exchange ratios vary in different assets) The nTokens in Neku Finance can not only be safely stored, transferred or traded, but also be used as yield farming tokens.

Once users have received nTokens, they can deposit them into corresponding yield farming pools to earn Neku tokens as a reward. If users set their assets as collateral and have outstanding debt, the portion of nTokens is occupied as collateral can not be used for farming in order to keep the health of liquidity and lending system.