Much in the same way an IPO is underwritten by a bank as a market maker, the X7 borrowing capability provides this capacity within the context of the Uniswap V2 automated market maker technology.
The core borrowing functionality within X7 applies to Initial Liquidity Offerings.
This capability allows for new liquidity pairs to be created with borrowed ETH. This lowers cost to launch a project, increase liquidity, and reduces the amount of capital locked to a pair.
Xchange's intuitive UI will allow an easy selection of terms. Simply select the amount you wish
to borrow and the Initial Liquidity Loan term you want to use, and the number of tokens you wish to include in the pair.
Borrower's Liquidity Tokens
Liqudity Tokens are sent to the borrower's specified address and remain in full control by the borrower. The borrower is free to lock the liquidity in any service they wish, transfer or hold them. Liquidity Tokens are not able to re be redeemed for the liquidity while a loan is active.
Default
In the case of a default through any of the terms violated specified on the Initial Liqudiity Loan, the Loan becomes eligible for liquidation.
