Granary is a cross-chain money market platform that is forked from Aave V2.
Granary is forked from Aave V2. Granary consists of a decentralized system of lending pools. Users deposit assets they want to lend into a liquidity pool and borrowers draw from the pool when they want to take out a loan. Granary borrowers must first supply assets before they can borrow. Given the high volatility of crypto assets, borrowers must post more collateral than the value of the loan, or commonly referred to as overcollateralization. Interest rates on Granary are driven by market supply and demand. To facilitate this activity, Granary issues gTokens to lenders that reflect accruing interest on the underlying token.
Granary currently has two income streams. The first income stream comes from flash loans, which incur a 0.09% service fee. This service enables users to borrow any available amount of assets without posting any collateral, as long as the liquidity is returned to the protocol within the same transaction block. The second income stream comes from a reserve factor that allocates a share of borrowers' fees to the ecosystem reserve. Each supported asset has a reserve factor that determines how much goes into the reserve.
You earn lending fees on Granary by depositing your idle crypto assets to be used by borrowers looking for leverage. For certain assets, Granary also offers additional protocol incentives in the protocol's native token to bootstrap demand.