EVAA Protocol: Lend and Borrow on TON

Your tokens sit idle in a wallet, and you do not want to sell them. You can lend them out for interest. Or you can borrow against them without parting with your assets. EVAA does both on TON, and its mini app opens the door straight from Telegram. 🏦

The project calls itself the first lending protocol on the TON blockchain. It is decentralized: smart contracts handle the money, not a bank.

A pool instead of a bank

EVAA has no contract between two people. Everyone who deposits assets tops up a shared liquidity pool, and borrowers draw from it.

Interest accrues automatically and depends on how much of the pool is on loan. Demand goes up, and rates go up with it.

Two roles, two sets of risks

• Supplier. Puts tokens in the pool and earns interest. Risk: a smart contract bug or a crash in the asset's price.
• Borrower. Posts collateral and takes another asset. Risk: liquidation if the collateral loses value.

Both paths require understanding what you are doing. The mini app simplifies the interface but does not remove the risks.

Liquidation and why people fear it

Loans here are over-collateralized: you can borrow less than you deposit as collateral. If the collateral falls in price, the loan's health factor drops.

When it sinks too low, liquidators repay part of the debt and take a matching part of the collateral. You lose assets, usually at the worst moment in the market. ⚠️

First steps without rushing

1. Connect a wallet that holds only part of your funds.
2. Start by supplying a small amount of TON to learn the interface.
3. See how the supply rate is shown and how it moves.
4. If you borrow, leave a wide safety margin on collateral.
5. Watch the health factor and never borrow the maximum.

The mini app and the governance token

The mini app gives access to the protocol from Telegram: wallet connection, supplying, and borrowing. The project also has an EVAA token, whose holders vote on risk parameters, new collateral types, and fees.

Such a token's price can swing wildly, so buying it for quick profit is a bet, not an investment with guarantees. 🎲

What to check before the first transaction

Parameters like collateral factor, liquidation threshold, and penalty differ by asset and can change. Read them in the app or the documentation, not in reviews.

Check the app address too: fake DeFi pages ask you to connect a wallet and sign extra permissions. Open the app only from the project's official sources. 🔐

Who it suits

People who already use a TON wallet and understand DeFi basics. Those who want interest on tokens and accept smart contract risk.

If you are new and cannot afford to lose what you put in, start with a small amount, or study the topic without investing at all. 🎓