Atlendis, a capital-efficient DeFi protocol that enables crypto loans without collateral, announced today the launch of the Atlendis protocol V1 on Polygon mainnet, a full-stack Ethereum scaling solution.
This is a major milestone for Atlendis (formerly known as JellyFi) following its $4.4 million seed funding round and coming a few months after the alpha release of the Atlendis protocol. Liquidity providers (LPs) can now deposit into the borrower pool of their choice on the Atlendis protocol to start earning interest. Whitelisted institutional borrowers including dApps, protocols and DAOs, can now take out loans in their specific pools.
Atlendis is launching with institutional borrowers DeversiFi and ZigZag with an initial credit limit of $10 million, and there is a growing pipeline of institutional borrowers that will be joining soon. Interested institutional borrower candidates can contact Atlendis Labs to apply for access to revolving lines of credit on the Atlendis protocol.
“We are excited to launch the Atlendis protocol and facilitate new DeFi use cases through uncollateralized crypto loans. Our main objective is to help crypto-native organizations access revolving lines of credit to meet their recurrent liquidity needs instantly without having to lock any collateral. In addition to targeting renowned Web3 institutions that engage in market-neutral strategies, Atlendis welcomes non-crypto native companies seeking exposure to crypto assets,” said Alexis Masseron, Co-Founder and CEO of Atlendis Labs.
“Atlendis is a unique protocol that allows DeversiFi to access short term, revolving and under-collateralized borrowing to fund DeversiFi’s fast-withdrawal service and multi-chain bridges. We aim to initially borrow USDC from Atlendis and scale to other pools as our cross-chain features roll out,” said Ross Middleton, Co-Founder of DeversiFi.
Atlendis Labs and the Atlendis Protocol
Founded in 2021 by former ConsenSys employees, Atlendis addresses capital inefficiencies in the DeFi lending market and provides solutions for recurring liquidity needs and non-dilutive financing. Previously, institutional borrowers including dApps, protocols and DAOs have had limited options to meet their liquidity requirements through crypto loans, as most DeFi lending protocols require borrowers to overcollateralize their loans, thus drastically reducing borrowing use cases in DeFi compared to TradFi.
Features Available for Liquidity Providers
- Rate Discovery
Liquidity pools are borrower specific and are split into multiple ticks. When adding liquidity to the pool of their choice, liquidity providers are able to choose the lending rate at which they feel comfortable lending based on their own risk assessment. The borrowing rate is derived by the market and depends on the rates offered by lenders.
- Non Fungible Positions
Each liquidity provider’s deposit on the Atlendis protocol is characterized by a position that is represented by an NFT with original artwork. The NFT displays the position and the underlying digital assets attached to it, indicating information including whether they are loaned or waiting to be matched with a borrower.
- Pool Incentivization
Liquidity providers on the Atlendis protocol are able to earn rewards from three sources:
- Actively lending to borrowers at the chosen lending rate.
- Aave’s APY, when the funds are not being actively borrowed.
- Additional liquidity rewards, paid by the borrower when their funds are not used.
Features Available for Borrowers
- Tailored Pools
The pools on the Atlendis protocol can be built to fit the specific use case of the borrower, with a wide range of parameters and additional functionalities.
Benefits for Borrowers
Once borrowers are whitelisted, the Atlendis protocol will create a specific liquidity pool(s) per borrower and per asset. Borrowers will have instant access to uncollateralized crypto loans at a fair rate via Atlendis’ unique market rate discovery. Borrowers have flexibility as they do not have to lock any collateral. Interest and principal on the crypto loans must be repaid at maturity.
Benefits for Lenders
On the Atlendis protocol, liquidity providers can earn higher rewards than on overcollateralized lending protocols. Lenders have the ability to choose the borrowers that they trust to lend to, as well as their preferred lending rate, benefiting from data including the credit evaluation and live financial performance of the borrowers performed by X-Margin.
Two audits of the Atlendis protocol’s smart contracts were mandated by Atlendis Labs. The first was conducted by Runtime Verification and the second by PeckShield.