Credora and Atlendis form Credit Evaluation Partnership to Facilitate Uncollateralized Crypto Loans
Credora’s credit evaluation will reduce the inherent risk of DeFi lending by providing greater visibility to lenders using the Atlendis protocol.
Atlendis, a capital-efficient DeFi lending protocol that enables crypto loans without collateral, is partnering with Credora (formerly known as X-Margin), the credit oracle risk engine for trading firms and institutions, to enable capital-efficient crypto borrowing and lending. The partnership will accelerate the adoption of uncollateralized loans on the blockchain, by using proven methodologies to reduce the inherent risk of DeFi lending.
In overcollateralized lending a borrower can only access an amount of secured credit provided they front at least the same amount in collateral, limiting borrowers in their borrowing capacity and lenders in their potential return. Returns in uncollateralized lending can be significantly higher, correlating to the risks incurred by liquidity providers who have no visibility on borrowers’ credit. However, lack of transparency on a borrower’s profile and creditworthiness may create a barrier for lenders to make an informed decision about which borrowers to lend to. Potential credit risks can discourage lenders from depositing into liquidity pools, reducing a borrower’s borrowing capacity.
The Atlendis protocol will address these issues by creating a more capital-efficient environment. Credora's privacy preserving technology will be integrated with the Atlendis protocol. Credora will enable the measurement of institutional borrower creditworthiness by computing a credit risk evaluation without revealing the sensitive underlying data.
Credora straddles CeFi as well as DeFi applications with a credit oracle for counterparty credit evaluation, encompassing real-time risk monitoring across borrower portfolios, KYC and financial statement analysis. Lenders gain transparency of risk through Credora’s privacy-preserving credit oracle, alongside additional security, with optional programmatic control of funds.
One of the steps in the Atlendis whitelisting process will be for borrowers to obtain a credit evaluation from Credora, which will be displayed on the Atlendis protocol. Once borrowers are whitelisted, they will get access to borrower-specific liquidity pools providing a revolving line of credit at a borrowing rate established via market rate discovery.
Lenders on the Atlendis protocol will have the ability to choose the borrowers they trust to lend to as well as their preferred lending rate. Through the partnership with Credora, lenders will have access to more data on borrowers to make informed lending decisions and to exercise more granular control over their portfolios.
Alexis Masseron, Co-Founder and CEO of Atlendis Labs, said:
“While the Atlendis protocol focuses on the financial aspect of the platform to make it fair and fully functional, it cannot vouch for the reputation of the borrowers involved. We are excited to partner with Credora, as onboarding Credora's credit evaluation will provide more information on borrowers without revealing sensitive data, and thus attract lenders with verification that loans will be more secure.”
Darshan Vaidya, CEO of Credora, said:
“On-chain credit markets will be one of the fastest-growing sectors of DeFi, and the backbone of this will depend on an oracle-driven approach that can capture the off-chain and on-chain activity of a borrower in a privacy-preserving way. We are delighted to be working with the Atlendis Labs team to help build a more efficient credit marketplace for the crypto ecosystem.”
*Entering into a loan agreement entails significant risks of financial loss. Users should not enter into a loan agreement without understanding the associated risks.
Atlendis is a capital-efficient DeFi lending protocol that enables uncollateralized crypto loans. Institutional borrowers can obtain flexible and competitive loan terms. Uncollateralized loans function as a revolving line of credit, giving borrowers flexibility for recurrent and short term liquidity needs. Lenders earn high returns on actively loaned out capital and have granular control over their investment portfolios. Unused capital is placed on a trusted third-party liquidity protocol, while simultaneously earning additional returns from Atlendis. There is no idle capital on Atlendis. Atlendis enables trusted borrowing and lending, opening a wide range of use cases for borrowers.
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Credora Credit enables data-driven lending for institutional capital through a privacy-preserving credit oracle. The credit oracle provides real-time risk monitoring without borrowers revealing sensitive information. Credora has facilitated more than $400m of credit in the crypto ecosystem and is backed by leading digital asset investors and the industry's most active trading institutions such as Coinbase Ventures, DCG, HashKey Capital, Polychain and Spartan Group. For more information on X-Margin and its technologies, please visit https://credora.io/.