Backbone

Core

At the heart of the protocol, smart contracts automate every aspect of lending and borrowing, ensuring transparency, efficiency, and security. These smart contracts are developed specifically for the lending protocol and liquidity pools, handling:

• Collateral Management: Ensuring collateral is securely locked and dynamically managed based on loan-to-value ratios and liquidation thresholds.

• Loan Issuance: Automating the approval and issuance of loans based on predefined risk parameters.

• Interest Rate Adjustments: Dynamically updating interest rates to reflect pool utilization and market demand.

• Liquidity Provision: Managing the allocation and flow of assets within liquidity pools to maintain balance and solvency.

The smart contracts are developed in collaboration with OpenZeppelin, a leader in blockchain security. They undergo constant audits by OpenZeppelin to ensure the highest standards of reliability and security. The audit process identifies potential vulnerabilities, rectifies them proactively, and guarantees the integrity of the code. This commitment to security bolsters user confidence and reinforces the protocol’s robust infrastructure.

The core embodies the central concept of the protocol, serving as the foundation for all lending activities and ensuring the safest and most advantageous practices.

Development Phases

Phase 1: Ethereum Network The protocol’s initial phase launched on the Ethereum network, leveraging its robust ecosystem and broad developer support. This stage established the protocol’s foundation by:

• Introducing core lending and borrowing functionalities.

• Utilizing Ethereum’s smart contracts for secure transactions.

• Integrating with popular Ethereum wallets and DeFi tools to build an initial user base.

Phase 2: Solana Network In its second phase, NELX expanded to the Solana network, chosen for its high throughput and low transaction costs. This phase aimed to:

• Lower transaction costs for users.

• Enhance speed and scalability to support a growing user base.

• Enable cross-chain interoperability between Ethereum and Solana ecosystems.

Phase 3: Cardano Network The third phase focuses on integrating with the Cardano network, aligning with its sustainability and rigorous development standards. This stage emphasizes:

• Implementing community governance to expand the number of participants, empower NELX token holders.

• Leveraging Cardano’s advanced blockchain features to enhance lending operations.

• Engaging ADA supporters and developers to enrich the ecosystem.

• Enable cross-chain interoperability between Ethereum, Solana and Cardano ecosystems.

For detailed plans, see the Roadmap.