Crypto Lending to Institutional Borrowers: Choose your Rate

Crypto lending with High Yield - Atlendis -1

UNCOLLATERALIZED LOANS

HOW DOES LENDING WORK ON THE ATLENDIS PROTOCOL?

Decentralized finance (DeFi) has created a parallel financial universe built on the core values of permissionless and trustlessness of blockchain technology, where financial institutions can borrow and lend with less friction and more transparency. Lending is seamless and agreements are executed instantly through smart contracts.

DeFi and crypto lending can be perceived as an opportunity to maximize the return on lenders’ investment portfolios. Overcollateralized lending platforms limit the level of return that lenders can achieve on their loaned assets. On the other hand, undercollateralized lending platforms enable lenders to lend to a multitude of borrowers without having the possibility of individually selecting them. Therefore, lenders delegate control of their investment decisions to the governance of the liquidity pool.

The Atlendis protocol solves these issues by creating a more capital efficient environment. Lenders can easily choose borrowers and have greater control over their risk profile. Lenders have the ability to choose their lending rate before being matched up with a borrower.

Until they are matched up with a borrower, idle capital is placed on a trusted third-party liquidity protocol, and lenders can benefit from its APY and earn a liquidity reward from the Atlendis protocol corresponding to the liquidity fee paid by the borrower. Once paired with a borrower, lenders benefit from earning additional interest on used capital at their chosen lending rate. Lender positions can be monitored through a dashboard and are represented by an NFT with original artwork. NFT positions can be sold, opening up a wide range of trading activities.

Crypto lending with High Yield - Atlendis -2

FEATURES

Lenders have the benefit of earning higher return while keeping control over their investment portfolios on the Atlendis protocol. Lenders can choose their borrower and their preferred lending rate. They also do not need to expose themselves to undesired risk from defaults as a result of being outvoted during loan approval. Capital does not sit idle on the Atlendis protocol and lenders earn returns even when they are not yet matched up with a borrower. Lenders can lend with more confidence and more control over their investment portfolios on the Atlendis protocol.

Only trusted dApps and protocols are allowed to use the Atlendis protocol. Once on the platform, lenders can select the borrower (or borrowers) of their choosing while setting the rate they want to lend at through the bid order book. Each liquidity pool may only be used by one borrower.

Most crypto lending platforms overcollateralize loans, which limits the rates that lenders can access when lending their digital assets. On the Atlendis protocol, lenders can choose from a group of borrowers while setting the lending rate they are most comfortable with. When not yet matched up with a borrower, lenders earn interest on a trusted third-party liquidity provider. Once a crypto line of credit is used by a borrower, lenders earn interest that corresponds to their chosen lending rate, while simultaneously earning an interest rate and liquidity reward on any unused capital.

The Atlendis protocol does not dilute existing lenders when new depositors enter a liquidity pool while the credit line is in use. Existing lenders continue to earn their chosen lending rate until the repayment of the loan. New liquidity providers who enter the pool will be able to realize their chosen lending rates once the credit line is used again by the borrower.

Lenders earn returns on the Atlendis protocol even when they are not yet matched up with a borrower. While waiting to be paired with a borrower, lenders’ funds are placed on a trusted third-party liquidity provider so they can earn APY in addition to Atlendis's liquidity reward. Once lenders are paired with a borrower, they realize their chosen lending rate on their used capital.

Once a lender sets their rate and deposits into the borrower’s bid order book, the position is represented by an NFT with original artwork. Each NFT can be sold, opening up a wide range of trading possibilities. Selling the NFT represents the entire position and the underlying digital assets attached to it, whether they are loaned or waiting to be matched. When the NFT is sold, the position is also sold, and once the position is withdrawn, the NFT is burned.

In partnership with industry-leading investors

“Uncollateralized lending is a massive market opportunity for DeFi. Atlendis’s uncollateralized protocol aims to bring capital efficient credit markets to DAOs and institutions across DeFi and CeFi. We’re excited to support Atlendis’s journey in becoming a liquidity backbone for DeFi”
Anjan Vinod, ParaFi Capital

Don't panic, it's FAQ now

What is crypto lending?

Crypto lending is lending through blockchain technology using digital currencies such as ETH instead of fiat, without the involvement of a third-party financial institution (that involves extra time and cost). Anyone can lend and borrow with access to DeFi apps. Traditional crypto lending is overcollateralized, meaning that borrowers need to lock more collateral in value than the amount borrowed in order to secure a loan. This is a barrier for many borrowing use cases. The Atlendis protocol is a more capital-efficient crypto lending protocol because it removes the need to lock any collateral upfront to obtain a crypto loan and capital does not sit idle or unused.

How does crypto lending work?

Crypto lending leverages blockchain technology and the use of smart contracts. Smart contracts eliminate the need for a central third-party intermediary, so loans are settled instantly with less permission and trust needed.

On the Atlendis protocol, lenders can choose from a pool of whitelisted borrowers who do not have to overcollateralize their loans. Based on their risk assessment, lenders can specify their lending rate for each borrower of their choice. Atlendis is a capital-efficient DeFi lending protocol that enables crypto loans without collateral, where institutional borrowers can obtain competitive loan terms, and lenders get access to higher returns while having more granular control over their investment portfolios.

What are the advantages of crypto lending?

Crypto lending enables lenders to earn interest on their digital assets without giving up the custody of their funds to a third-party financial institution. Crypto lending on the Atlendis protocol gives access to higher returns while enabling lenders to keep control over their digital assets. Lenders have the flexibility to choose their borrowers and their desired lending rate.

What is the interest rate when lending crypto?

Interest rates for crypto loans vary depending on the DeFi apps and platforms used and the level of associated risk. There is no predetermined interest rate on the Atlendis protocol, instead, the platform allows for fair rate discovery using a bid order book. Unused capital is placed on a trusted third-party liquidity protocol while simultaneously earning additional returns from the Atlendis protocol, the interest rate on the Atlendis protocol is floored.

Is crypto lending safe?

Crypto lending comes with associated levels of risk depending on the DeFi apps and protocols used and the types of digital assets involved. It is recommended to seek professional advice from a financial advisor.

Why choose the Atlendis protocol for crypto lending?

Atlendis is a capital-efficient DeFi lending protocol that enables uncollateralized crypto loans. Lenders have control over their investment portfolios and can benefit from higher returns than on overcollateralized lending platforms. However, as a potential reward does not come without risk, lenders are able to build their investment portfolio by individually selecting the borrowers of their choice, as well as their preferred lending rate. Unused capital is placed on a trusted third-party liquidity protocol while simultaneously earning additional returns from the Atlendis protocol.