Atlendis Protocol V1 | Whitepaper Announcement


Atlendis Protocol V1 | Whitepaper Announcement

The Atlendis protocol V1 whitepaper has been released. Atlendis revolutionizes DeFi by bringing uncollateralized lending to institutional borrowers and a granular high return investment vehicle to the public.

Atlendis Protocol V1 Whitepape

After an intense period of development, testing, designing and a smart contract audit conducted by Runtime Verification that will be published soon, the launch of the Atlendis protocol is approaching and the pace is picking up!

Today, the Atlendis Labs team is proud to share the whitepaper of its first iteration with the community, in order to build the future of DeFi lending and develop the most efficient capital management solutions together. Open sourcing the code will also come shortly and will complete this whitepaper to help make the technology and rationale behind the Atlendis protocol accessible and understandable by the public.

The Atlendis protocol leverages powerful smart contracts to enable uncollateralized crypto loans for institutional borrowers:

“Similarly to a revolving line of credit, the Atlendis protocol allows entities to borrow, i.e. issue bonds as many times as they need, up to a preset credit limit, without any collateral. The borrowing rate is discovered via a limit order book specific to each borrower. The rate is fixed at borrowing time and does not change throughout the duration of the bond. It can however differ from one bond issuance to the next. The funds are not shared among borrowers and liquidity providers choose their own lending rates, therefore, liquidity providers are only exposed to their chosen borrowers and keep ownership over their investment profile.”

Atlendis V1 Whitepaper

What makes the Atlendis protocol unique?

The Atlendis protocol’s singularity lies in innovative features, like borrower and asset specific pools, but also its unique rate order book that allows for a fair on-chain rate discovery. Because of the plurality of borrowers, use-cases for uncollateralized lending, and therefore of risk levels, the Atlendis protocol provides a better alternative to algorithmic rate setting.

"Liquidity providers have the possibility to set their own rate, i.e. to be able to choose the amount of risk they are willing to take for the level of potential return. Therefore, lenders are able to make their own risk assessment and select the rate at which they are willing to lend for the level of risk that they have evaluated."

Atlendis V1 Whitepaper

For the sake of illustrating the way the Atlendis protocol’s rate discovery works, let’s consider Borrower A’s pool with a 10 million max borrowable amount cap and the following graph. Borrower A wants to write a 4 million credit line and will be able to borrow at an interest rate of 7.5%, which is the weighted average of the tick’s volume of liquidity deposited, with ticks defined as:

"[...] a sub-pool of funds within the borrower’s pool that corresponds to a specific lending rate."

Atlendis V1 Whitepaper

Atlendis Labs whitepaper V1 screenshot

Representation of matched liquidity provider at bond issuance

Another exclusive feature of the Atlendis protocol is the position NFT and original artwork, that each liquidity provider receives upon depositing funds, and that contains information about their investment, i.e. pool position.

To quote the whitepaper,  [...] the liquidity provider’s positions are characterized by:

  • Chosen lending rate.
  • Amount of bonds held, for instance, owning a quantity 100 of bonds entitles the lender to receive 100 at maturity.
  • Unused deposit amount, represents the amount of deposit placed on Aave and earning additional liquidity rewards paid by the borrower. [...]

The positions are ERC-721 and possess all the functionalities inherent to this standard.

To go further

Read the full whitepaper here to learn more about the Atlendis protocol’s underlying technology. Also feel free to reach out to the Atlendis Labs’ team on Discord for more information, and to express your interest in contributing to building the largest Web3 liquidity protocol.

About the Atlendis Protocol

Atlendis is a capital-efficient DeFi protocol enabling uncollateralized crypto lending to institutional borrowers. For authorized borrowers, the Atlendis protocol enables the opening of a unique pool per borrower and per asset that functions like a revolving line of credit, giving granularity and flexibility over recurrent and short term liquidity needs. Loan terms such as the maturity, asset type, maximum borrowable amount and more are negotiated and fixed in the pool parameters upon opening.

For lenders, the Atlendis protocol offers a high-return financial vehicle and the possibility to individually select their borrowers and set their lending rate, hence enabling lenders to choose the amount of risk they are willing to take depending on their risk profile. Liquidity providers earn liquidity rewards while funds are unused and additional rewards as funds are lent out. Not only is there no idle capital on Atlendis, it also opens a wide range of use cases for Web3 actors and Web2 entities looking for exposure on the blockchain.

To get involved

Additional resources | Whitepaper | Twitter | Discord | LinkedIn