Xend Finance (XEND): What Is it?
Xend Finance is a hybrid blockchain-based credit union-inspired platform. Interested parties can borrow, invest, save, or lend digital assets using this platform.
It is the protocol’s native token, which is used for governance, reward, and fee transactions. In addition to the team, stake rewards, ecosystem, and private and public sales, XEND is distributed among many other factors.
Due to the limited number of members and geographic restrictions, traditional credit unions lack liquidity. These geographical barriers are eliminated by decentralized finance (DeFi) protocols, adding a new dimension to borrowing, saving, and lending.
Ethereum (ETH) is the blockchain on which Xend was first developed. A faster and more secure system was then built on top of the Binance Smart Chain (BSC), allowing for scalability, high speed, and a high degree of security. Binance and Google are the two main investors in Xend.
 Who are the Founders?
Aronu Ugochukwu is the founder and CEO of Xend Finance. Wicrypt, Ugarsoft, and Ogwugo were also founded by him.
Chief technology officer and co-founder of Xend, Abafor Chima leads the company as its chief technology officer. His previous employers include Ogwugo, Ugarsoft, and ByteWorks Technology Solutions.
How is Xend Finance Different?
With Xend Finance, users can create credit unions and pool funds for savings, loans, and investments.
 Those creating the credit union can define its requirements and governance rules completely from scratch. Among the parameters that must be met are the value of the deposit, the contribution intervals for every user, and the number of charges if the contribution schedule is not met.
The protocol utilizes smart contracts to assign unique identification tags to each group.
Credit unions, used by Xend to avoid spam attacks, are charged to users. Creators receive a shareable link once they launch a group. Those who contribute early are entitled to a percentage of the deposit. Upon reaching $100 million in deposits, rewards will be halved.
Token XEND, a cryptocurrency native to the platform, serves as the platform’s native currency. It is used to reward users who participate in the protocol, including those who save and lend. Subscription fees can also be paid with the token.
The Xend Finance company focuses on and governs the community. Decentralized autonomous organizations (DAO) are responsible for governing Xend.
Features:
Credit Unions
Using the system, users can create credit unions to save, invest, or lend funds for a commission. A professional user interface designed by Xend Finance is required to access this feature.
Create your group with your requirements and rules. For instance, the deposit value, contribution interval for each user, charges for failure to honor the contribution schedule, and withdrawal amounts are some examples of required parameters.
The protocol generates a unique identification tag for each group based on a smart contract. The credit unions are also charged by Xend, to keep spammers away. Names for groups can be given by creators, and the details can be customized as well.
A link can be sent to friends and family after the creator has completed the creation. A certain amount of the total amount contributed goes to the early birds. Once the credit union reaches $100 million in deposits, rewards will be reduced by half.
Contributions from groups fall into cycles. In a subscription cycle, contributions are subject to a fee. The platform’s native token, XEND, accounts for 25 percent of the costs (more on the token later). Fines engraved within contribution intervals include early withdrawals and late deposits, which are charged at 1.0 or 0.5 percent, respectively.
Esusu
Esusu is more of a loan pool than a credit union, which offers saving, investing, and borrowing capabilities. In tradition, a group of like-minded people and a set amount of money is contributed by an Esusu at a given time. As an example, in Africa, the contribution amount may be distributed in a rotating schedule after a particular timeframe.
Esusu partners with financial institutions in some cases. To reduce the risk of defaulting and to ensure all groups benefit within a given timeframe, these groups usually have limited membership. The deposit amount decreases as the number of members decreases.
It is preferable to work with low-income individuals when financial firms are involved to foster trustworthiness. As a result, these individuals are institutionalized. Disregarding banks doesn’t spare those who ignore it. Inflation risks are borne by them.
Through the implementation of an Esusu program on Xend Finance, customers are protected against these risks. Xend’s smart contracts handle user deposits
Aave and Compound are two yield farming platforms with which the contract lends deposit money. The contract is credited with the gains from these systems.
Esusu members are eligible to receive farming incentives based on the payout time frame defined by creators. The capital withdrawal feature is activated after every member is allocated their share.
By enabling withdrawals after every member benefits, mischievous members will be prevented from withdrawing their capital before the end of the cycle.
How does it work? Since the DeFi protocol rewards are directly correlated to the amount invested, a lower amount due to premature withdrawals will unfairly affect other members in the queue.
Xend Finance’s advantages
- A clean and professional user interface –A The DeFi user interface is both simple and professional, creating a smooth experience for new users. Due to this, DeFi networks are not as intimidating.
- Investment return optimized – Xend only deploys user’s funds to the best and most reliable DEFIsystems. By putting their funds into their deposits, users enjoy maximum ROI. In addition, users need not micromanage yield farming campaigns when these systems are aggregated.
- Blockchain access – It can work across multiple decentralized platforms due to Binance Smart Chain’s support.
- Insured deposits – Xend Finance utilizes decentralized insurance services to protect customer funding.
