Atlendis Labs’ Co-Founder and CEO Alexis Masseron gave a talk on March 31st, 2022 at ETHDubai on how to power up DeFi 2.0 thanks to uncollateralized lending.
About Alexis Masseron
Alexis is the Co-Founder and CEO of Atlendis Labs. Alexis has been working in the crypto ecosystem since 2017 and was previously a Software Engineer at ConsenSys. Alexis is a firm believer that DeFi’s mission is to bring a more open, trustless and capital-efficient financial system to the people, as well as to Web2 and Web3 entities.
Summary
Pain point
DeFi’s mission is to build a transparent, trustless and capital-efficient financial market. Despite a buzzing DeFi ecosystem driven by DAOs and DeFi protocols that build cutting edge features and products, the most basic form of traditional finance funding is still lacking.
Most DeFi lending applications currently offer over-collateralized loans (meaning the debtor must deposit more than they are willing to borrow) because these protocols are peer-to-peer oriented and therefore carry an already elevated default risk. This definitely limits DAOs and protocols in funding their operations through debt, and this is why we see a lot of DAOs and protocols go through dilutive financing methods – such as raising funds from VCs and Angel investors. If it is a seemingly efficient way to bootstrap and scale one’s protocol, it comes with a cost and most of the time won’t meet a business’ needs. Dilutive financing methods can indeed only be carried out a limit amount of times.
Solution
This is why if we want to see strong and powerful Web3 entities to make the ecosystem thrive, DAOs and DeFi protocols need to have access to revolving credit lines with banks, which is not possible and is Atlendis’ targeted pain point.
Indeed DAOs and protocols build on blockchain technology, which means that most of their data and money flows are on-chain and publicly accessible. These can thoroughly be monitored and thus credit scoring and consequent financing through undercollateralized loans can be made easier with Web3 entities than with their Web2 counterparts. Additionally, Web3 insurance services already allow creditors to cover themselves against default risk.
Atlendis Labs sees two main use cases for uncollateralized lending: trading strategies (market-making, arbitraging, liquidity needs…), and cash management (fast withdrawals, bridging, OpEx financing…).
The above tweet epitomizes one example of friction that currently trickles down from the lack of financing options in DeFi: bridges must be refilled constantly to avoid being drained and enable users to bridge their digital assets from one chain to another, at any time.
Uncollateralized lending would allow bridging protocols to have access to immediate liquidity in a trustless and automated way, thereby ensuring functional liquidity pools at any time, and can be combined to revenue streaming products to reach optimal capital-efficiency.
Meet the Atlendis Labs team
There is no better time than April to meet the Atlendis Labs team and to find out more about Atlendis:
- Atlendis Labs will be present at Paris Blockchain Week Summit on April 13-14.
- Atlendis Labs will host a side event during Paris Blockchain Week on April 13 and registration is open here.
- If you are going to Amsterdam for the Devconnect week, you can also register here to meet the Atlendis Labs team for a “Capital-Efficient DeFi Happy Hour” co-hosted with CowSwap on April 18th.
Mark your calendars, peeps. Alternatively, you can join the community on Atlendis’ Discord or follow Atlendis’ Twitter to engage with the team virtually!
Additional links
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