About Ionic
Ionic is a money market, offering a non-custodial, capital-efficient asset management platform, without compromising security and user-friendly experience. The platform aims to democratize lending and borrowing with good interest rates on Mode and Base networks by providing a one-stop permissionless liquidity management solution.
Ionic’s thoroughly designed its tokenomics to ensure steady and long-lasting growth delivering all participants with the collective benefit of every stakeholder.
Key Features:
- Shared revenue: a portion of the platform's fees and a portion of SFS rewards are delivered to users every week, according to their stake.
- Wide asset support: a fruitful variety of supported assets on Mode and Base networks, including LRTs, LSTs, and all of the major tokens with an opportunity to add new asset classes as new protocols onboard onto the networks.
- Looping: one-click looping to open a leverage position on the assets you’re interested in.
- Yield Compounding: yield compounding across multiple assets to empower seasoned DeFi strategies and earning opportunities.
Yield-Bearing Assets: LRTs & LRTs
Ionic allows any yield-bearing asset integration in the Ionic market, to further boost the Mode and Base ecosystems composability and "unlocking liquidity" behind yield-bearing assets.
Thanks to the ERC-4626 integration, users can deposit such assets as collateral and stay exposed to the yield and points the assets bring, creating a loan that pays itself.
LSTs
LSTs (Liquid Staked Tokens), are ETH staked through protocols such as Lido, Rocket Pool, etc. These protocols run a network of nodes and will use your deposited ETH in their nodes.
Thanks to that, you get exposure to Ethereum Proof-of-Work yield without staking it yourself as well as clearing away the minimal entry for node from 32 ETH to any ETH you are ready to stake.
By holding the LST you are getting ETH yield. Supplying and collateralizing your LSTs on Ionic, empowers you to earn with other DeFi strategies and keep exposure to the price of ETH and ETH yield.
LRTs
LRTs (Liquid Restaked Tokens) are liquid representations of restaked LSTs on EigenLayer (EL). A user can restake their LSTs into EL. Keep in mind that by doing this, you couldn’t withdraw your tokens for an undisclosed time, to be more "liquid" and use your assets in LRTs like Ether.fi, Renzo, etc. were created.
You can stake your ETH and LST and mint a liquid derivative from it in the form of an LST. Minting an LST makes it possible to be exposed not only to the whole EigenLayer ecosystem and its points but also to yields of validation, ie staked ETH. Besides, the majority of LRT protocols have their own points program on top of EL, so you can get points from both protocols.
Supplying and collateralizing your LRTs on Ionic makes it possible to earn all of those points, and the ETH yield, while using borrowed assets.
Check the currently available assets in the app and their respectable 0x in the docs.
How to Earn Ionic’s Points?
Ionic Points
If you have interacted with the protocol and helped it grow, you get rewards. Points help to track quantitative contribution to the app and its ecosystem’s success, that’s why the protocol takes up this evolving feature and gives its users to earn them in 4 ways.
- Supply
You can supply your assets (and use them later as collateral) to get a stable supply of APY + Ionic & Mode points.
- Borrow
Borrows are the main driver of the protocol’s success. Therefore, borrows are rewarded more than a simple supply on every dollar borrowed.
- Supply idle stablecoins
Provide idle stablecoin liquidity supplied into Ionic to the Steer pool to get an additional 3x Ionic points + transaction fees (See details on the earning page).
- Stake $ION on Velodrome
Supply and stake WETH/ION LP position on Velodrome and get an additional 3x Ionic points (See details on the earning page).
- Double counting: the supply and borrow points are counted separately and stacked.
- Special promotions: All Base deposits get 3x Ionic Points. All the borrows across all the markets get 3x Ionic Points.
Ionic: Main Use Cases
- Leveraged Assets
Leveraged lending provides deeper liquidity, less money-oriented LPing, higher TVL, and more utility.
- Yield Optimization
You can compound and boost earning yields by using Ionic's money market infra - battle-tested, improved, and audited for full security.
- Ecosystem Scalability
Robust lending and borrowing for the OP (Optimism) Superchain ecosystem (which includes Mode and Base networks) helps to enhance your earnings by providing liquidity for the network environment.
How Safe Is Ionic?
Ionic’s contracts, oracles, and pools were audited by Zellic.
The Zellic team focused on basic coding mistakes, business logic errors, complex integration risks, and code maturity.
As for the Ionic protocol, no critical issues were found. The audit revealed 2 issues of medium impact, 2 of low impact, and 2 of informational. All the issues were resolved and recommendations were implemented by the Ionic team. Here’s a full report.
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Disclaimer: Notum does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Cryptocurrency is subject to market risk. Please do your own research and trade with caution.