For lenders, returns are also optimized even when the assets are lent.
Atlendis, the DeFi protocol that enables collateral-free crypto lending, today announced the launch of V1 of the protocol on Polygon’s mainnet network, a complete Ethereum scaling solution.
This is an important milestone for Atlendis (formerly known as JellyFi) following the $4.4 million fundraising effort and a few months after the launch of the alpha version of the Atlendis protocol. Liquidity providers – or LPs for liquidity providers – can now deposit crypto assets on Atlendis, in the liquidity pools of the borrowers of their choice, and start earning interest. For their part, recognized institutional borrowers can obtain a line of credit by borrowing from their own liquidity pool(s).
The launch of Atlendis is being conducted with institutional borrowers DeversiFi and ZigZag, who will benefit from an initial credit limit of $10 million. Other borrowers will be joining them soon. Institutional borrowers interested in revolving credit lines should contact Atlendis Labs.
“We are excited to launch the Atlendis protocol and thereby enable new use cases for DeFi through collateral-free crypto lending. Our main goal is to help native businesses in the cryptocurrency sector access revolving credit lines to meet their recurring liquidity needs immediately, without having to commit their assets as collateral. Atlendis is not only targeting reputable Web3 institutions pursuing market-neutral strategies, but also welcomes companies from outside the cryptocurrency industry seeking exposure to digital assets,” said Alexis Masseron, co-founder and CEO of Atlendis Labs.
“Atlendis is a unique protocol that gives DeversiFi access to short-term, revolving and collateralized debt to fund its ‘quick withdrawal’ services – rapid withdrawal of assets from one blockchain to another – and from “multi-chain bridges” – gateways to transfer assets between blockchains, initially we want to borrow USDC through Atlendis and diversify our liquidity pools as we roll out our cross-blockchain capabilities,” said Ross Middleton, co-founder of DeversiFi.
Atlendis Labs and the Atlendis Protocol
Founded in 2021 by former ConsenSys employees, Atlendis aims to address capital inefficiencies in the credit market in DeFi, address recurring liquidity needs and enable non-dilutive financing. Previously, institutional borrowers, including dApps, Protocols, and DAOs, had limited options in DeFi to meet these liquidity needs, with most lending protocols requiring borrowers to collateralize their loans. This significantly reduced the use cases for loans in DeFi compared to traditional financing.
Features available to liquidity providers
● Determination of rates
Liquidity pools are specific to each borrower and are divided into tranches for each interest rate. When depositing liquidity in the pool of their choice, liquidity providers choose the rate at which they want to lend based on their own risk analysis. The borrowing rate is therefore directly determined by the market, on the blockchain, and depends on the rates offered by the liquidity providers.
● Non-replaceable positions
The deposit of each liquidity provider on the Atlendis protocol is characterized by a position, which is represented by an NFT with a unique image. The NFT details the lender’s position, including the status of the funds – whether on loan or pending a loan – and the underlying digital assets associated with them.
● Rewards for Liquidity Providers
Liquidity providers on the Atlendis protocol can earn rewards from three sources:
○ Interest earned on lending assets to borrowers, at the rate chosen by the lender.
○ When the funds are borrowed, they are automatically deposited on Aave – the largest overcollateralized lending protocol – and reimbursed at this platform’s rate.
○ Additional liquidity rewards paid by the borrower when their money is not used.
Features available to borrowers
● Customized swimming pools
Atlendis protocol pools are designed to meet the specific needs of the borrower, with a wide range of specific parameters and features.
Benefits for borrowers
Once borrowers are authorized, the Atlendis protocol opens one or more specific liquidity pools for each borrower and asset. Borrowers can access cryptocurrency loans instantly without the need for collateral, and at a clean rate discovered by the market thanks to an innovative order book developed by Atlendis. In addition, borrowers on Atlendis develop their credit profile and financial reputation and facilitate such services. The amount borrowed and the interest of the cryptocurrency loans must be repaid on the maturity date.
Benefits for lenders
With the Atlendis protocol, liquidity providers benefit from granularity in their investment choice and receive a higher interest rate than on overcollateralized loan protocols. They have the option to make loans only to borrowers they trust, and to choose the rate at which they want to borrow, taking into account their own research on the borrower and assisted by the credit assessment conducted by X-Margin, a partner from Atlendis.
Atlendis Labs has commissioned two audits of Atlendis Protocol Smart Contracts as part of a comprehensive long-term protocol security strategy. The first was done by Runtime Verification and the second by PeckShield.
Atlendis is a protocol for lending in cryptocurrencies without collateral. Institutional borrowers can get flexible and competitive loan terms. Unsecured loans made through the Atlendis protocol are similar to revolving credit lines, giving borrowers real flexibility for recurring and short-term liquidity needs. For lenders, Atlendis enables higher returns with detailed control of their risk profile. Lenders can earn high interest on actively borrowed capital and unused capital will be placed on a reputable third-party liquidity protocol. There will be no untapped capital on Atlendis. Atlendis enables trust-based lending and lending, giving borrowers a wide range of uses.
* Entering into a loan agreement involves risks. Please refer to the Atlendis Terms of Service for more information.