What are On-ramps, Off-ramps and Cash Advance?
Whether a growing Web3 business or a Web2 company looking for ways to more effectively manage their treasury and expenses, they need solutions that help them convert different types of assets (digital and/or fiat), make payouts and/or receive payments. Solutions that abstract the complexities of using blockchain, while preserving the benefits can more efficiently help these web3 and web2 companies achieve their goals with little to no overhead.
Services include issuing corporate cards in fiat for Web3 teams – for which digital assets like USDC are escrowed as collateral, on-chain cash advances for Web2 businesses – for which RWA may be escrowed as collateral, crypto or fiat revolving lines of credit, etc.
Business challenges for Web3 teams
- Web3 teams have difficulty off-ramping their crypto assets.
- Founders pay bills using their personal credit cards and then need to reimburse themselves.
- Corporate card providers do not underwrite crypto assets (including stablecoins), meaning teams that have millions of dollars in treasury on-chain cannot access corporate cards.
- Web3 companies have difficulties taking out loans in fiat because their collateral is on-chain.
Business challenges for Web2 companies
- Web2 companies have difficulties onboarding onto DeFi because of the technical, legal and accounting complexities of the acquiring and keeping custody of digital assets.
- Web2 companies have difficulties taking out loans in digital assets because their collateral is off-chain.
How does Atlendis address On-ramps, Off-ramps and Cash Advance?
Atlendis enables Web2 and Web3 entities that facilitate business across TradFi and DeFi to access liquidity on-chain from lenders across the world, and expand their activity to serve more customers. Examples include ramps or Fintechs that propose corporate cards and fiat lines of credit to Web3 companies.
Lenders can gain exposure to this type of product, effectively diversifying their portfolio with a stable source of yield.
Benefits for Lenders to use Atlendis for On-ramps, Off-ramps and Cash Advance
- Steady stream of income: Lending to fintechs operating in the expense and treasury management space provides a steady stream of income in the form of interest and fees.
- High risk-adjusted yields: Returns in the sector are often considered to be priced above the risk curve.
- Diversification: Investing in expense and treasury management Fintechs provides exposure to a different asset class and can help diversify an investment portfolio.
- Low default rates: Cash advances in these use-cases are often fully collateralized – in the case of Web3 businesses, the collateral is locked in an escrow smart contract and the collateral is liquidated in case of default. For that reason, the sector has had very low default rates, which can make it an attractive investment for investors seeking a relatively low-risk option.
- Opportunity to support DeFi: Lending to the expense and treasury management facilitates the onboarding of companies that seek to enjoy the benefits of adopting DeFi based technologies for their financial operations.
- Increased transparency and accountability: The use of blockchain technologies provides transparency that can help reduce the risk of fraud and errors, which can be beneficial for lenders.
Benefits for Borrowers to use Atlendis for On-ramps, Off-ramps and Cash Advance
- Greater efficiency: Atlendis helps these Fintechs access liquidity efficiently, at any time and at their preferred terms. The blockchain improves operations through security, accounting and cost-efficient transactions, which optimizes the advance of cash incurred to on or off-board customers.
- Quick access to funds: Atlendis’ revolving lines of credit constitute a pool of liquidity made readily available thanks to smart contracts and that can be accessed as needed once the liquidity pool is set up.
- Web3-native: Atlendis Labs has expertise in the blockchain ecosystem and the protocol integrates seamlessly with Web3 native companies, to benefit smart contracts and blockchains advantages.