Discovering Atlendis Protocol: A Deeper Look into the Revolving Credit Line (RCL) Pools 🚀
Series of educational articles on the Atlendis Protocol - Part 1
Hey Lendies! In this series of blog posts, we'll delve deep into the features of the Atlendis protocol. This post shines a spotlight on our flagship product, the Revolving Credit Line (RCL). Atlendis offers a distinctive approach to address regular and short-term liquidity needs through revolving credit lines. In this blog post, we'll explore the features that set Atlendis’ revolving credit line apart from traditional revolving credit lines and how it empowers borrowers with enhanced flexibility. Let's dive in!
Understanding Atlendis’ Revolving Credit Line (RCL)
Atlendis’ Revolving Credit Line (RCL) Pools empower borrowers to access loans directly from a community of lenders without the need for intermediaries.
Unlike conventional revolving credit lines, Atlendis' approach is akin to successive bullet loans, customized to individual borrowers through the creation of tailored lending pools. This unique feature ensures a more personalised and efficient borrowing experience.
Here's how it works: lenders deposit tokens into the pool, and borrowers can take loans against the pool up to a preset credit limit. They then repay the loans with interest at the end of the loan period. Unless liquidity providers choose to withdraw, the liquidity remains in the pool, allowing borrowers to take out another loan.
Simple, right? So what sets Atlendis’ RCL apart?
The Special Features of Atlendis' RCL
- Managing Borrowing Cycles: When a borrower initiates a loan, they receive tokens and set a repayment date in the future. The borrowed amount, along with the accrued interest, must be repaid by this maturity date. If the borrower hasn't utilized their full borrowing capacity and the loan hasn't matured, they still have the option to borrow more from their liquidity pool. However, this additional borrowing doesn't alter the original maturity date. Atlendis has had pools lasting from 1 to 4 months, with credit limits up to $1M token equivalent.
- Flexibility in Borrowing and Efficient Liquidity Management: Borrowers can signal their liquidity needs and their preferred cost of borrowing to lenders at any time. They can tap into their RCL Pool as long as they stay within their credit limit. This process ensures borrowers receive tokens immediately, saving time and costs, which can be redirected to business growth. Borrowers only borrow what they require, precisely when they need it.
- Revolving Aspect: As the name suggests, after repaying a loan, borrowers can start another one immediately, provided lenders agree and leave their liquidity in the pool. This revolving feature makes the RCL incredibly flexible and fosters lasting win-win relationships where everyone's needs are met.
Putting It Into Perspective with a Real-World Use Case: Fluna's Pool
One excellent example of the Revolving Credit Line's application is Fluna's pool, which exemplifies the true potential of this innovative financial tool. Fluna, a trade finance company, is currently on its 5th borrowing cycle, with the pool growing as new lenders join after each cycle. You can find more information on Fluna’s use case of Atlendis here.
Stay tuned for our next installment, where we'll unravel the on-chain order book structure of Atlendis and how it opens doors for secure fixed-rate loans. To keep up with the latest updates and explore more insights into the future of decentralized finance with Atlendis Protocol, be sure to subscribe to our mailing list.
Get ready to discover a financial landscape defined by adaptability, efficiency, and opportunity. The Atlendis journey has just begun. 🚀