Borrow Crypto: Corporate Line of Credit with No Collateral

UNCOLLATERALIZED LOANS

HOW DOES BORROWING WORK ON ATLENDIS?

The Atlendis protocol enables DeFi crypto loans leveraging blockchain technology. Once whitelisted, specific liquidity pool(s) for each borrower and a dedicated order book will be created, enabling borrowers to withdraw funds from their individual pool(s) up to an authorized amount. Then, when they want to take out a crypto loan, borrowers are automatically paired with lenders. Borrowers can enjoy a more capital-efficient experience and benefit from the flexibility of issuing recurring crypto loans.

On the Atlendis protocol, institutional borrowers are not forced to overcollateralize their crypto assets to obtain a crypto loan. The pool is a dedicated line of credit enabling recurring loans that borrowers can access and withdraw from at any time. Borrowers can withdraw from this liquidity pool as they see fit, accessing capital when they need it and only paying a liquidity fee on unused capital (that is then distributed to lenders as a liquidity reward). Interest and principal on crypto loans are repaid at maturity.

Crypto line of credit for corporates - Atlendis

FEATURES

The bid order book allows lenders to specify at which rate they are willing to lend their funds to the borrower of their choice. Institutional borrowers always borrow starting from the lowest rate to the highest rate. This mechanism allows the borrowing rate to be discovered by the market. Borrowing and lending are executed using smart contracts, eliminating the additional cost of centralized third-party intermediaries. Borrowing with no collateralization requirements maximizes capital efficiency for financial institutions by freeing up funds, and allows lenders to obtain more aggressive rates. Furthermore, only dApps, protocols, and institutional borrowers are allowed access to the Atlendis protocol.

The interest rate for loans on the Atlendis protocol is determined by lenders and is fixed for the duration of the loan. Borrowers pay a liquidity fee on unused capital and interest on used capital. The borrower’s pool(s) size is not limited, but the maximum borrowable amount is capped, and liquidity fees are applied to this amount. The maturity of the loan and the borrowing rate are both fixed at bond issuance time, and do not change throughout the duration of the loan.

Similar to a revolving line of credit, the Atlendis protocol offers a crypto credit line in the form of a liquidity pool that the borrower can withdraw from at any time. The liquidity pool is not shared and is only set up for that specific borrower with the loan terms agreed upon using the bid order book. The borrower pays a liquidity fee as a percentage of the maximum borrowable amount and interest on used capital. Once the borrower no longer needs the loan, or the terms of the loan have been completed, the liquidity pool remains available for the borrower to quickly and easily obtain a new crypto loan to meet their evolving liquidity needs.

On some DeFi protocols, borrowers have to submit borrowing requests and wait until they get voted on. On the Atlendis protocol, once borrowers have been whitelisted, they do not have to wait to obtain their funds – they can borrow and repay from their liquidity pool(s) as needed, up to a pre-set limit.

In partnership with industry-leading investors

“At Tioga we believe that as trust between and within DAOs increases, so will the appetite for uncollateralized loans…Having won the credit delegation track of the ETHGlobal MarketMake hackathon earlier this year, we believe that Atlendis has the right project to become a category defining protocol in unsecured lending”
Michiel Lescrauwaet, Managing Partner at Tioga Capital

Don't panic, it's FAQ now

What is a crypto line of credit with no collateral?

Most lending platforms require institutional borrowers to post collateral to obtain capital, which drastically reduces capital efficiency. Liquidity is locked up on overcollateralized platforms, and borrowers are forced to deploy capital upfront to obtain a crypto loan, which is a blocker for many use cases.

On the Atlendis protocol, once institutional borrowers are whitelisted, they can quickly and easily access a crypto line of credit to meet their recurring liquidity needs. This dedicated liquidity pool(s) is always available for borrowers as needed, therefore increasing capital efficiency without the intervention of a third-party.

Can you get a crypto line of credit with no collateral?

The Atlendis protocol only works with institutional borrowers, including dApps and protocols.

What are the advantages of a crypto credit line with no collateral?

A crypto credit line with no collateral upfront opens a much wider range of use cases and increases capital efficiency. For example, liquidity is locked up on other DeFi platforms that overcollateralize loans and cannot be used until the original loan is paid off. This drastically decreases capital efficiency. Crypto credit lines on the Atlendis protocol are more flexible for borrowers.

Why choose Atlendis for borrowing crypto without collateral?

Digital currencies have opened up a wider range of possibilities for DeFi borrowing and lending than TradFi, by removing the need for third-party intermediaries and saving time and cost.

Atlendis’s capital-efficient DeFi lending protocol facilitates access to crypto loans for both institutional borrowers and lenders, while increasing capital efficiency for both sides. Once borrowers are whitelisted and allowed access to the platform, they can instantly open their own liquidity pool(s) without having to lock any collateral upfront.