YieldBlox introduces Protocol Owned Debt to eliminate liquidation cascade risks by having lending pools borrow from themselves and settle via fees, enhancing stability and capital efficiency on Stellar. It also upgrades to Growing Liability Tokens for better interest tracking and ~30% performance gains. Launch delayed by a month, with community calls planned for December.
YieldBlox, the first DeFi lending protocol on Stellar, unveils Protocol Owned Debt (POD), allowing lending pools to assume delinquent user debt and repay it over time using redirected protocol fees, preventing YBX price shocks from default protection sales. This mitigates liquidation cascades triggered by market sell-offs and staked YBX borrowing, enabling higher LTV ratios and safer staking. POD isolates risks to specific pools in multi-pool setups, improving staker risk-reward. Additionally, switching to an accrued interest tracker via Growing Liability Tokens boosts performance by ~30% for high-volume users. Despite these advances, launch is pushed back a month for audits and turret work. Community governance calls are scheduled for December 10th (supported assets) and 17th (YBX issuance) on Discord.
