According to data, in February 2021, 95% of the total revenue of the Compound platform came from revolving loans (Click here).
What is revolving loan？ It is deposit-borrow-deposit-borrow-deposit-borrow…recurring cycle, it will amplify the APR by amplify the principal. Among revolving loans, single currency revolving loan is a relatively simple and lower risk gameplay.
The single currency revolving loan means that both supplying and borrowing are the same currency. Even if the currency price fluctuates greatly, the fluctuations in the value of collateral and borrowing assets are the same, so the Borrow limit remains unchanged, reducing the risk of being liquidated.
To realize the single currency cycle, the DeFi project where you need to support the supplying and borrowing of same currency, it means that the users can supply and borrow the same asset from the same address. Now AAVE, Venus and Channels, etc. all supports the supplying and borrowing of same currency. It can reduce the liquidation risk of users due to asset price fluctuations. In fact, it also optimizes the user experience. Users of revolving loans do not need to use two addresses for revolving loan.
Supporting supplying and borrowing the same currency will help increase Wing’s TVL and market cap. So I suggest that Wing supports supplying and borrowing the same currency.