Xend Finance DeFi Protocol: Frequently Asked Questions.

The incentivized test net for the Binance backed Defi credit union protocol; Xend Finance is now live and has lasted for one week. As users interact with the protocol by performing different test savings and investment operations in a bid to understand the workings of the platform and earn rewards, it became necessary to develop a comprehensive list of frequently asked questions (FAQ’s) to aid user understanding and interaction on the platform.

Here is a list of frequently asked question about Xend finance:

1. What is Xend Finance?

Xend Finance (XF) is a decentralized Credit Union protocol built to optimize, improve and add value to the core operations of credit unions globally.

2. What is DeFi?

DeFi is short for decentralized finance. It refers to financial services using smart contracts, which are automated enforceable agreements that don’t need intermediaries like a bank or lawyer and use online blockchain technology instead.

3. What is a smart contract?

A smart contract is a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract. Smart contracts allow the performance of credible transactions without third parties.

4. Does Xend Finance have a Token?

Yes. The Xend Finance network has the Xend Token ($XEND) as its native network token. The Xend Tokens are used to reward users for saving, investing and performing different operations on the network.

5. Is there any benefit of holding the Xend Token?

Yes. The Xend Tokens generate interest for the users as they hold on to the tokens. Also, as the value increases, you can sell your $XEND and earn higher yields.

6. What type of savings operation can I perform on Xend Finance?

You can perform individual savings operation, Esusu savings operation and cooperative savings operation on the Xend finance protocol.

7. Will I pay any fees for saving on Xend Finance?

Yes. Xend Finance charges credit unions (Esusu or cooperative) a small fee to create a union on the smart contract and a fee per complete save cycle. Individuals also pay a little fee for saving on Xend finance.

8. What token will I use to pay the fees?

The Fees are paid using Xend Token ($XEND) which is the native network token.

9. How does my savings on Xend finance generate returns on investment?

A percentage of the fees paid are burnt and this causes the value of the $XEND to increase, hence paying first level of interest to $XEND holders. Secondly, the XendFinance smart contract periodically invests user savings (deposits) on DeFi lending protocols such as Compound, AAVE & Yearn Finance Protocol and this produces a second level of interest for the users.

10. Can I save in Xend finance from anywhere in the world?

Yes. There are no country restrictions.

11. What is the maximum amount I can save personally?

There are no limits. You can save as much as you want.

12. How much can I withdraw from my personal savings?

You can withdraw up to 100% of your share balance.

13. What is share balance?

Your share balance (FBUSD Shares) represents a certificate of deposit which is redeemed for BUSD during withdrawal.

14. When can I withdraw from my personal saving?

You can withdraw at any time from your share balance.

15. What is APY?

APY means Annual Percentage Yield. It is the real rate of return earned on a savings deposit or investment taking into account the effect of compounding interest.

16. What is the Expected APY when saving on Xend Finance?

The projected APY of saving or investing on Xend finance is up to 15%.

17. What is a stable coin?

Stablecoin refers to a range of cryptocurrencies that derive its market value from some external reference. It essentially means that unlike fiat money, they are backed by a reserve asset like during the Gold Standard Era.

18. Does Xend finance make use of a stable coin?

Yes. The Binance USD (BUSD) stable coin.

19. What is Esusu?

Esusu is a traditional form of cooperation in African societies where groups of individuals contribute to informal savings and credit associations for their mutual benefit.

20. What is an Esusu cycle?

An Esusu cycle refers to a group of people saving together in an esusu savings operation at predetermined intervals.

21. Can I create an Esusu cycle?

Yes. But it has to be created as a group first. read this article for guidance.

22. How many people can form an Esusu cycle?

A minimum of two (2) individual. No maximum. But it is advisable to restrict the cycle to close associate to avoid default in contribution.

23. Can I join an Esusu cycle created by someone else?

Yes. So far the time interval for joining it hasn’t elapsed.

24. What is the APY on my Esusu contribution?

Up to 15%.

25. Can I withdraw from my Esusu cycle at anytime?

No. You can only withdraw your ROI once your ROI payout date is due. Thereafter, you can now withdraw your capital at the end of the esusu cycle.

26. When does an Esusu cycle end?

An esusu cycle ends after the ROI payout interval for each member has been reached. For instance, if the payout interval for an esusu cycle is 1 hour and there are 5 members in that esusu cycle. The esusu cycle ends after 5 hours when the last member’s ROI payout time is due.

27. Can I withdraw my capital before withdrawing my ROI?

No. You must withdraw you ROI before you can be able to withdraw you Capital.

28. What is my ROI payout date?

Your ROI payout date is the time within an esusu cycle when your ROI is due for withdrawal. It is displayed on your dashboard as payout date.

29. How do I determine the payout interval for an Esusu cycle?

You set it yourself when you are creating an Esusu cycle (if you created one). However, if you are joining a cycle created by someone else, the payout interval is set by that person.

30. How do I get my associates to join an Esusu cycle I created?

Just copy the esusu cycle link on and share with them. The link for a testnet esusu cycle is like this: https://testnet.xend.finance/esusu/join/48

31. How many Esusu groups and cycles can I create?

For now, there are no restrictions on the number of Esusu groups or cycles you can create.

32. How many Esusu cycles can I join?

As many as your funds can carry. There are no restrictions.

33. How do I know the number of Esusu savings cycles I am part of?

On the Esusu dashboard, click on contributions and a list of esusu cycles you are part of will be displayed showing ‘those created by you’, ‘pending’, ‘in-progress’ and ‘completed’ cycles.

34. What is a cooperative savings operation?

Cooperative savings are groups owned and operated by and for their members/contributors, using pooled funds for the interest and benefits of its member.

35. Can I create a cooperative savings cycle?

Yes.

36. What is the number of people that can form a cooperative savings cycle?

A minimum of two (2) and no maximum.

37. Can I join a cooperative savings cycle created by someone else?

Yes. You can be part of a cooperative savings cycle by depositing the amount for one or more stakes.

38. What is the difference between Esusu and Cooperative?

In cooperative savings, one stake might be worth $10, so to contribute in that particular cooperative cycle, you can get a stake for $10, two stakes for $20, and so on. This differs from the Esusu cycle where there is a fixed deposit amount every member/contributor in the cycle has to deposit.

39. How do I determine the cycle duration for a cooperative savings cycle?

The cycle duration or period is set by the person who created the cooperative savings cycle when creating it.

40. Who determines the stake amount for a cooperative savings cycle?

The person that created the cooperative savings cycle.

41. How many cooperative cycles can I join?

As much as your funds can carry.

42. Can I withdraw my funds from a cooperative cycle at any time?

No. You can only withdraw from a cooperative cycle at the end of the cycle.

43. How many stakes can I take in a cooperative cycle?

As much as your funds can carry. There are no restrictions. But be sure to check the stake amount for each stake.

44. How do I know the number of cooperative savings cycles I am part of?

On the cooperatives dashboard, click on contributions and a list of cooperative cycles you are part of will be displayed showing ‘pending’, ‘in-progress’ and ‘completed’ cycles.

45. Is there a written guideline to help me get started on Xend Finance?

Yes. Just click on the “help” button on the dashboard to get started.

Conclusion:

The incentivized testnet is still on. You can join the testnet to practically learn how to interact with the Xend finance DeFi protocol and perform different savings and investment operations while earning rewards. You can also follow Xend Finance on twitter @xendfinance and join the telegram community for more updates and announcement.