What is Chumhum Finance: How to Claim CHUM Airdrop?

chumhum finance

The ChumHum Finance Protocol is designed for a complete algorithmic money market protocol.

The protocol designs are architected and forked based on Compound and Marker DAO and synced into the ChumHum platform, thus incorporating the advantages of both systems into one.

What is Chumhum Finance

chumhum finance

Chumhum Finance Protocol (Chumhum) is an algorithmic-based money market system designed with the intent of enabling a complete decentralized finance-based lending and credit system.

ChumHum.Finance helps users make efficient use of their cryptocurrencies by supplying collateral to the network which can be borrowed by pledging over-collateralized cryptocurrencies.

This helps in creating a secure lending ecosystem where the lender receives a compounded interest rate annually (APY) which is paid per block, while the borrower pays interest on the cryptocurrency borrowed.

The interest rates are defined by the protocol using a curve yield, where the rates are automated based on the demand of the specific market, such as Bitcoin.

The main difference ofChumHum from other money market protocols lies in the ability to use the collateral supplied to the market to not only borrow other assets but also to mint synthetic stablecoins with over-collateralized positions that help in protecting the protocol.

These synthetic stable coins are just backed by a basket of fiat currencies but also by a basket of cryptocurrencies.

How Does Chumhum Finance Works

Let’s say that Miriam wants to buy her new dream house, but the bankers have declined her application. Miriam has been a cryptocurrency advocate for many years and has a good portfolio, but doesn’t want to expose herself to capital gains tax by selling the assets and not earn any worthwhile appreciation.

Then again, Miriam believes in the underlying technology of cryptocurrencies as she cannot but believe in the mid and long-term growth of the asset class.

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So what does Miriam do?

She can’t use her bank to borrow money from her asset class.

She can’t sell at the moment and expose herself to taxes and missing opportunities.

Miriam turns to the ChumHum Protocol by utilizing the token canal project to move her XRP from the XRP Ledger to the Blockchain where ChumHum is based.

She then utilizes her browser and the internet to access the ChumHum Dashboard and suppliesher XRP to the protocol. She is now benefiting from the potential price appreciation ofher XRP while earning a modest APY on hersupply.

She then prepares to take a loan in USDC by calculating how much she needs, then utilizing the dashboard to take the loan.

Without any bankers or third parties in between, the protocol will calculate her collateral value and then let her take an over-collateralized loan on it.

She borrows USDC instantly and uses her crypto exchange account to convert it into local fiat currency. Now Miriam has enough corpus to buy her dream house while waiting for the markets.

She is not obliged to any monthly payments, and her collateral appreciation can be used in her favor. She can also make payments at any time and pay no additional interest as interest rates are compounded per block.

Lastly, Miriam has been paying a great deal of attention to DeFi and all the new yield farming high APY returns that she could be earning.

These potential earnings could be short-lived but are real forthe time being. How does Miriam gain from this? Does she want to jump through hurdles to getsome of her collateral out to mint a stablecoin inanother protocol?

The answer in short is, “No”. Miriam needs a one-stop-shop solution so that she can participate in yield farming quickly.

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Within the dashboard or the smart contracts, she can easily mint stable coins without any interference from central authority.

She can use those newly minted stable coins onto the latest DeFi yield farming project with ease

ChumHum Token (CHUM)

The ChumHum Protocol is governed by the ChumHum Token (CHUM), which is designed to be a “fair launch” cryptocurrency.

The Protocol has no upfront founder, team, or developer allocations, and CHUM can only be earned through the Airdrop or through providing liquidity to the protocol.

There will be an initial 20% of the total supply of122,500,000 (24,500,000 CHUM) allocated to theJustLiquidity/JulSwap Airdrop for all JUL(JULb) and JulD Holders and Stakers.

The remaining Airdrop Amount is used only for Exchange Listings, Market Making, and Marketing.

The remainder of the supply will be exclusively available for the protocol and Team, which will result in 98,000,000CHUM mined over a period of approximately 3.8 years; which begins after the protocol launch at a rate of 2.61 CHUM per block (28,000 blocks per day).

The distribution of CHUM is based on liquidity mining, where 30% of the daily rewards get distributed to borrowers, 30% to suppliers, 30% for stablecoin minters, and 10% for the Team

How to Participate in Chumhum Finance Airdrop

chumhum finance airdrpo

Welcome to the Future of OTC Token Sales with chumhum.Finance

chumhum.Finance is based on the Binance Smart Chain and will have no official Token Sale. $CHUM will be easily availailbe via the OTC Contract on JulSwap and all JUL (JULb) & JulD Holders and SLP Stakers will Receive a Ratio Airdrop.

If you hold JUL (JULb) & JulD, it needs to be in a wallet where you own the private key.

We will take one random snapshot in the upcoming 10 days and if you hold or stake JUL (JULb) & JulD (including JUL & JulD paired SLP Tokens) at this moment, you will receive $CHUM Tokens.

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Ratio: 1 JULb = 10.5 $CHUM — 1 JulD = 0.0175 $CHUM

The $CHUM Distribution Takes place in the upcoming 14 Days.

More updates are on the way! Stay Tuned and Follow us!

Final Verdict

The ChumHum Finance Protocol has been designed to provide platform users with a decentralized and secure marketplace to avail loans, earn interest, and mind synthetic stablecoins.

The protocol runs entirely on the Blockchain, which removes current challenges faced on the Ethereum blockchain in terms of congestion, lack of cross-chain compatible assets, and high transaction fees.

These standards are coupled to give a scalable solution on a money market that will be completely controlled by a community through its governance token CHUM.

CHUM has distributed via a fair-launch mechanism with no upfront founder and team allocations.

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