A Revolutionary DeFi Lending Protocol: Chalice Finance Full Review

It’s no brainer that the DeFi sector is growing at an exponential speed. As of September 2020, DeFi Pulse reported that over $10 billion in digital assets had been placed across various decentralized finance (DeFi) protocols amounting to a 600% growth since the beginning of the year. 

The growth of DeFi lending platforms has been instrumental in mainstream crypto adoption enabling crypto investors to trade derivatives, earn interest on their digital assets, and also take loans using crypto collateral, all in a decentralized way. But amidst its explosive growth, the DeFi sector faces certain challenges that hinder its further growth. 

A major challenge among DeFi platforms is the liquidation of positions held by DeFi users. This is because most DeFi platforms are based on Ethereum and employ ETH as collateral. Like all cryptocurrencies, ETH is always fluctuating in price, causing a liquidation in prices. 

Chalice.Finance is a revolutionary DeFi platform that safeguards DeFi users’ positions against price volatility synonymous with the crypto market. Here’s an in-depth review of this revolutionary platform. 

Chalice. Finance   

Chalice.Finance is a revolutionary protocol built on the Ethereum blockchain. The platform provides DeFi users with various services, including multi collateral debt positions accepting numerous cryptocurrencies including BTC, collateralized loans, and stable coins on ERC-20 crypto assets.

The platform also offers stability and decentralized leverage to crypto asset holders. Furthermore, Chalice.Finance integrates the Chalice network, which supports self-issuance crypto loans. 

The Chalice Network 

The Chalice Network is a protocol based on the Ethereum network that allows users to create their own currencies. The protocol integrates several elements, i.e., Voting, Oracles, Chalice Collateral Vaults, and Chalice (CHAL & CHALx) tokens. 

Essentially, the Chalice Network governs the Chalice. Finance platform by leveraging the voting capability of Chalice holders to determine key network factors, including types and rates of collateral, stability fees, etc. 

The Chalice Network performs four key functions on the Chalice. Finance platform. These are: 

• Provides stable coins and multi-collateralized on ERC-20 crypto assets 
• Offer users decentralized leverage and stability on crypto assets
• Govern the Chalice. Finance platform by determining key functionalities

Features of the Chalice Network   

The Chalice Network boasts of three key features. 

• Self Issue Loan– Through the Chalice Network, users can get self-issue loans by simply instructing the platform
• Multi-collateral Debt– Chalice Network allows users to take loans by using their cryptocurrency holdings as collateral
• Stable-coin– Chalice Network issues loans to users in a stable coin format, i.e., USD-pegged stable coin. The most commonly issued loan is BUSD/USDT

Chalice. Finance Tokens (CHAL Token & CHALx)

Chalice. Finance is a multi-token DeFi platform meaning that it’s powered by two tokens, i.e., CHAL and CHALx tokens. CHAL is the utility token used to pay for all transactions within the Chalice. Finance ecosystem. 

CHALx is a stablecoin that allows users to collateralize their digital assets for USDT/BUSD. Generating and accessing CHALx is quite easy and straightforward. To generate CHALx, users need to first deposit collateral assets into CHAL Vaults via the Chalice Protocol.

This way, users are offered access to liquidity, plus CHALx enters the circulation. The other way Chalice. Finance users can obtain CHALx tokens by purchasing it from exchanges or brokers or by receiving it as a payment means. 

After the generation of CHALx, either through buying from exchanges or brokers or receiving it as a means of payment, it can be used like any other cryptocurrency. It can be used to pay for goods and services, cross-border payments, and even held as savings on the Chalice Protocol. In addition to holding utility, CHALx has other use cases as below. 

Use Cases of CHALx Token 

• CHALx is a Standard of Deferred Payment thus is used to settle debts within the CHALx Protocol. Chalice. Finance users close their Vaults by paying the stability fee using CHALx 
• Chalice. Finance users can collateralize their digital assets in exchange for CHALx Token and USDT/BUSD. All CHALx in circulation is backed by excess collateral. This means that the value of collateral is always higher compared to the value of CHALx under debt
• CHALx can be used as a Medium of Exchange. As a medium of exchange, the token can facilitate the purchase, exchange, or sale of goods and services worldwide

How to Generate CHALx Token on the Chalice. Finance Platform 

CHALx token is generated and kept stable via collateral assets held into Chalice Vaults on the Chalice Protocol. The processing of generating CHALx involves the Chalice Protocol accepting any Ethereum-based asset approved by CHAL holders as collateral. 

CHAL holders are also required to approve particular, matching Risk Parameters for approved collateral. Steps in the generation of CHALx are as below. 

• Deposit Crypto via a website
• Create CDP
• Create a Stable Coin 
• Close CDP 
• Return of crypto assets

Decentralized Governance on Chalice. Finance 

Like most DeFi platforms, Chalice. Finance employs a decentralized governance structure where CHAL holders vote on key issues affecting the protocol. The platform users must first hold and stake CHAL to vote or submit a proposal in the Chalice Finance ecosystem. 1 vote within the ecosystem is equal to each staked CHAL. 

To make proposals on the platform, users need to hold at least $100 worth of CHAL as collateral. This amount is lost in case the proposal is rejected. CHAL holders can propose a number of changes to the Chalice. Finance ecosystem. 

These changes may include: ecosystem grants, adding additional staking assets, adding additional lending products, determining types of accepted collateral, determining the collateral-to-debt ratio, interest rates, CHAL inflation level, and the price stability fees for CDPs.

CHAL Tokenomics 

CHAL tokenomics is as below: 

• Total supply: 13 000 CHAL 
• Hardcap: 520 ETH 
• Softcap: 200 ETH 
• Presale price:15 CHAL/ETH 
• Uniswap price: 10 CHAL/ETH 

  Token Distribution is as below 

Allocation	Token %	Token No.
Reserve	7%	910
Uniswap Liquidity	21%	2, 730
Staking Reward	12%	1, 560
Public Sale	60%	7, 800
Total Supply	100%	13, 000

Chalice Finance Presale Information

Date

December 2nd, 2020 (Round 1) at 8:00 AM UTC

December 3rd, 2020 (Round 2) at 8:00 AM UTC

Presale Platform

https://presale.chalice.finance

Smart contract

0x2BD20E646854531e7631Cd6226ED01baac32B5EA

Token Presale

• Round 1 (24hour): 1 ETH = 20 CHAL
• Round 2 (7 day): 1 ETH = 15 CHAL
• Hardcap: 500 ETH
• Softcap: 200 ETH
• Total supply : 13.000 CHAL
• Uniswap List: 1ETH = 10 CHAL
• (MIN: 0.1ETH, MAX: 20ETH)

Token Distribution

• Reserve 7% = 910 Token (locked 5month, released 20% per month)
• Uniswap Liquidity 21% = 2.730 Token (locked 12month)
• Staking Reward 12% = 1.560 Token
• Public Sale 60% = 7.800 Token
• Unsold token on round 1 and 2 will be burnt immediately
• Uniswap list December 9th, 2020
• *If softcap/hardcap reach will be listed 48hrs after.

Conclusion

As the DeFi space continues growing, DeFi open lending protocols have taken the spotlight. However, most lending platforms support limited coins and don’t protect borrowers against price volatility in the crypto market, leading to the liquidation of positions. 

Chalice. Finance is a unique multi-collateral decentralized lending protocol that offers multi collateral debt positions, decentralized leverage and stability, collateralized loans and stable coins involving numerous ERC-20 assets. 

The platform allows users to generate CHALx-a collateral-backed, unbiased token pegged on the US Dollar and resistant to hyperinflation, thus ideal for collateral loans. Going forward, the platform will transform DeFi lending and offer economic freedom. 

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