Wing Finance is a decentralized finance (DeFi) platform developed by the team responsible for Ontology. It facilitates cross-chain interactions between a variety of protocols. The Wing team developed an innovative credit valuation method to enhance transparency and support its credit-based lending. Wing Finance aims to establish a fair and synergistic relationship between guarantors, creditors, and borrowers through decentralized governance and a risk control mechanism. This approach facilitates the implementation of a broader array of DeFi projects on the platform.

Simply stated, Wing Finance is the system that develops a credit evaluation tool that considers a specific user’s holdings or balance as well as their history of managing digital assets. To accomplish this, OScore associates a digital identity with a user’s assets, including those constructed on Ontology, Ethereum, and Bitcoin. This assists the system in determining a user’s credit score.

Given that the platform is fueled by Ontology, it can support a collateral pool that includes various cryptocurrencies, regardless of their blockchain origin. This is known as “cross-chain” support. Any asset can be digitized using Ontology’s decentralized identity and data functions.

Background of Wing Finance

The team responsible for Ontology developed Wing Finance, a decentralized finance (DeFi) platform. Nick Zhang is Ontology’s DeFi Ecosystem Lead. Nick Zhang, the project leader, is an investor in the blockchain industry and is currently active in the San Francisco Bay Area. He holds degrees in mathematics and finance from Johns Hopkins University and Boston University. In addition to Ontology, John has made investments in other initiatives. A few projects are DoraHacks, Fcoin, Bibox, and 0x.

From Portugal, John Izaguire serves as the Europe Ecosystem Lead at Onotology. He is committed to developing transformative decentralized financial solutions and deeply understands blockchain infrastructure. John has a bachelor’s degree in International Relations and Affairs from San Francisco State University. Additionally, he has obtained certificates in computer science, Bitcoin, and cryptocurrencies from Princeton University and the London School of Economics and Political Science (LSE).

From March 2019 to April 2023, Eric Pinos served as the American Ecosystem Lead at Ontology and served as an advisor. After being promoted to Director of Operations, Eric served as the former president of Blockchain Education Network (BEN) from August 2018 to January 2024. At present, he serves as an investment partner at BEN. Eric has a bachelor’s degree in Science and Management from the Massachusetts Institute of Technology.

Features of Wing Finance

The developers of Wing Finance aim to resolve the prevalent issues with the conventional financial products implemented in DeFi. The primary attributes of Wing Finance are as follows:

• Wing Finance promotes decentralized governance and cross-chain collaboration in various DeFi initiatives.
• They have a risk control mechanism that promotes mutually beneficial relationships between guarantors, creditors, and borrowers.
• Through its decentralized credit system, Wing Finance establishes a connection between the traditional finance sector and the world of DeFi.

How does Wing Finance work?

One of Wing Finance’s most significant attributes is its use of the OScore system for credit ratings. The system evaluates the creditworthiness of its consumers by considering the user’s digital assets, loan behavior, and credit history. Based on this data, a risk profile is established, and users can apply for loans.

Wing Finance implements decentralized governance and smart contracts to guarantee security and transparency. Wing Finance evaluates users based on their credit history and behavior rather than traditional collateral, such as substantial quantities of cryptocurrency. This increases the accessibility of crypto borrowing for individuals with restricted financial resources. Moreover, Wing Finance has a buyback and burn policy, which involves repurchasing and burning a portion of the company’s earnings to increase the value and scarcity of WING tokens.

Wing Pools

Wing Finance offers three varieties of pools: the Inclusive Pool, the NFT Pool, and the Flash Pool.

Flash Pool

Wing Finance is implemented on four networks, comprising six pools: Ethereum, Ontology, OKXChain, BNB Chain, and Ontology EVM. Wing Finance’s Flash Pool enables users to borrow and lend on the platform. To supply their funds on the platform, lenders also receive interest payments. Additionally, an insurance pool is in place to mitigate the probability of asset losses.

Anyone can contribute their cryptocurrencies to the Flash Pool, lending them to the platform’s borrowers. Lenders receive interest on the crypto supplied and the WING tokens in exchange. The return is directly proportional to its annual percentage yield (APY).

The Flash Pool allows users to borrow cryptocurrencies, provided that they satisfy the collateral requirements for the loan. To receive WING rewards, users must initially secure 3% of their tokens in WING. Users may also participate in the platform’s insurance pool to guarantee that potential risks are adequately addressed. Users must secure their WING credentials in the flash pool for at least three days.

NFT Pool

Wing Finance’s NFT Pool is a fund pool that operates on the Wing DAO platform and is founded on NFT collateral. It supports six varieties of NFTs: CryptoPunks, MAYC, BAYC, Meebits, Azuki, and Clone X. Wing Finance’s NFT pool is primarily distinguished by its peer-to-pool lending model, which aims to offer a distinctive and innovative approach to unlocking the value of NFTs.

Users contribute ETH to the asset pool to provide liquidity to the lending pool through the peer-to-pool lending mechanism. These users receive ETH interest from creditors and the pWING token, an ERC-20 protocol variant of the WING token. Users can borrow ETH by collateralizing NFTs in the NFT pool, which are then placed in the NFT-collateral pool. The creditors are subsequently issued a functional NFT that corresponds to the NFT. NFT buyers could acquire these NFTs through the liquidation market, with the potential for a discount because the floor price determines the NFT prices.

Inclusive Pool

According to Wing Finance, the Inclusive Pool is an asset pool that enables users to maximize their financing capabilities by undercollaterizing assets. The inclusive pool comprises an insurance pool and a supply and borrow pool. The Inclusive Pool supports only three assets: pDAI, pUSDT, and pUSDC. Users can borrow from the supply pool under the regulations established by Wing Finance. Additionally, users can lend assets; however, they must accumulate a specific sum each time. The OScore of the users determines this sum. WING tokens are disseminated to individuals who utilize the Inclusive Pool, provided they have not defaulted on their repayments or have only returned their loans during the grace period.

The Wing DAO

The Wing DAO can assist community proposals to establish new asset market product pools. Each product pool comprises a lending pool, a borrowed pool, and an optional risk control margin pool. The margin pool will receive 5% of the interest revenue generated by each loan. The funds will be deposited into the Wing DAO community fund pool without a margin pool.

Wing Governance Model

A significant amount of enthusiasm for participation has been observed in the Wing DAO community to strengthen the governance model implemented by Wing Finance further since the launch of Wing in September 2020. The fundamental governance privileges in Wing DAO consist of the following:

• Participating in a vote to approve a new product pool
• Voting on applying the WING token in product pool regulations (e.g., designating WING as one of the default asset types in the margin pool)
• Voting on the allocation of the Wing DAO community fund token.
• The commencement of voting on additional new governance mechanisms

Wing Risk Control

A component of the Wing DAO framework defines the risk control mechanism. In conjunction with the risk control framework of Wing DAO, the initiator and policymaker of each product pool can develop their final risk control model. The fundamental risk control framework of Wing DAO is as follows:

• Submit the type of loan amount or history for external users (one-time user authorization is required).
• Make the breach records of the offending user publicly available (subject to the user’s prior authorization before participating in the service).
• The loan and borrower users determine the terms or electronic contracts necessary for the risk control measures required by other product pool proposals, including KYC, credit review, and default management. In principle, such agreements must adhere to laws pertinent to the product situation. Wing DAO does not condone any violation of laws or contract regulations.

How does Wing Governance work?

To engage in governance, a user must possess a WING token. In addition to participation, individuals with a minimum of 1,000 WING tokens can submit a proposal. These include adding new assets to the platform, modifying collateral requirements, adjusting an interest rate, and implementing buy-backs.

The community must discuss the proposal for three days after it is submitted. Additionally, it must be viewed 100 times and engaged with by a minimum of 10 users. After that, the proposition will only be released for the community to vote on. Proposals that include a default yes/no option will be considered. Submitted proposals must be as detailed as possible, and any additional information should be listed as bullet points indicating the new information’s sequential order. The Wing Team will evaluate the proposal within 72 hours before commencing the voting procedure.

If a proposal is not deemed acceptable, the Wing Team will explain the rejection clearly and propose a new vote based on the proposal within three days. The WING tokens in the proposer’s wallet will be locked upon proposal submission until the proposal is authorized. At that time, the tokens will be automatically converted into yes votes and unlocked.

What is the WING Token?

The WING token is Wing DAO’s governance token and is endowed with a set of governance rights. WingDAO entirely owns the WING token’s rights, and it will not be pre-allocated to specific individuals or organizations in any capacity, nor will it be utilized for any financing.

A total of 10,000,000 WING tokens were minted and distributed. The WING Token has a total supply of 7,638,124.87 and a circulating supply of 4,552,109.69. Although not included in the project WhitePaper, the project currently burns 1,036.80 WING tokens and distributes 2,592 tokens daily.

Liquidity and margin incentives were allocated 8,000,000 tokens (80%). The transaction volume of each product pool determined this allocation for the product pools. A further 2,000,000 (20%) was allocated to the Wing DAO Community Fund. 20% of the supply was transferred to the public custodian account that could not be transferred out and only had governance rights. Every six months, 500,000 (5% of the total supply) from the 20% was transferred to the Wing DAO community fund pool following the introduction of the Wing DAO.

How do I Buy WING Tokens?

• Go to Gate.io Exchange and create an account by entering your email ID and password.
• Set up your fund password by entering settings; this password will be asked during fund withdrawal.
• To buy WING tokens, you must complete KYC with the proper documents.
• After KYC, go to Spot Trade, search for WING, and select.
• After opening the new page, fill in the amount in WING or USDT you want to buy and click the buy button.
• After a successful buy, go to the Wallet > Withdraw page.
• Here, select WING, and then enter the wallet address.
• It will ask you for your fund password, 2FA, and email code; enter them correctly and submit.
• Your WING will arrive in your wallet after a few confirmations.

Conclusion

The over-collateralization requirements in most DeFi products have limited the number of people who can borrow crypto and the amount they can leverage. Although many crypto adopters had anticipated these innovations, they needed to be more sufficient to entice new adopters who did not have significant crypto holdings.

Wing Finance has developed a system that simplifies the process of borrowing funds and lending inactive assets to generate returns, all while maintaining the quality of its liquidity pool. Additionally, it is not subject to the escalating gas fees encountered in other smart contract chains, as it operates on top of the Ontology system.