FAQs

What are the risks of using EnsoFi as a DeFi protocol for lending and borrowing tokens?

Smart Contract Risk

Any smart contract is susceptible to vulnerabilities that could be exploited by hackers. While EnsoFi likely incorporates rigorous security measures, there's always a chance a vulnerability could exist. This could lead to loss of funds for lenders and borrowers.

Market Volatility

Cryptocurrencies are notoriously volatile, and their prices can fluctuate rapidly. This means the value of your collateral or loan could decrease significantly, potentially triggering liquidation for borrowers or reducing returns for lenders.

Liquidation Risk

If the value of your collateral falls below a certain threshold (the liquidation threshold), it could be automatically sold to repay your loan. This can lead to significant losses, especially in highly volatile markets.

Counterparty Risk

In DeFi, you interact directly with other users. There's a risk that they may not fulfill their obligations, leading to losses for the other party.

What are the fees that EnsoFi charges users?

We are currently working on the computation of the fees.

How many chains does EnsoFi support?

We are currently operating on Solana and will multi-chain with SUI, Monad and Injective soon.

Does EnsoFi have a token?

Yes.