While lending & borrowing are integral to DeFi, there are still risks when collateralizing your assets. Please do your due dilligence & deposit accordingly.
The following section of the documentation covers the Spherean ecosystem exclusively pertaining to its utility to $SPHERE as a token. To dive deeper into Preon, join the Sphere Finance Discord & follow Preon on Twitter.
Preon is a cross-margin, 0-interest lending protocol that makes use of CDP mechanics. Using Preon, users can collateralize parts of their portfolio to leverage their farming experience, or simply use their assets without the need to sell them.
Why borrow on Preon?
Preon is a CDP. This means that there is no money market dependant on lenders depositing stablecoins. Instead, Preon issues its own stablecoin, $STAR. This makes borrowing on Preon much more accessible. Another benefit to borrowing is that it's cross-margin.
This allows users to collateralize their loans with a variety of tokens, from LPs to yield-bearing stablecoins. As a borrower, you can manage your risk by depositing a general portfolio of assets with different degrees of risk.