The bigger the deal and the bigger the market , The less malleable and adjustable it is .
Original title ：《 Take apart DeFi Four innovative experiments in lending | Chain catcher 》
writing ：Luke Posey,Glassnode researcher
The loan is DeFi One of the most important cornerstones of Ecology ,Aave 、 Compound and Maker And other projects have been dominant for a long time , But at the same time, there are many innovative lending projects , To satisfy the DeFi Diversified needs of users .
Glassnode researcher Luke Posey The author's contribution to the recent DeFi The innovation experiment of the loan market is described in detail , Include Alchemix、Cream Finance、Rari Capital、Liquity Products such as , Yes DeFi Users have a lot of reading value .
For a while , Lending programs have always been ahead of blue chips in terms of total liquidity DeFi project , and Aave and Compound Still dominating the field . In less than 24 In months , Their growth has driven the total value of lock in collateral from 1 Billion dollars to 150 Billion More than $ . It's driven by the proven multi asset excess mortgage formula .
A few months ago ,Aave Our total deposits exceed Compound, Part of the reason is its liquidity mining incentives , And added additional collateral options 、 Stable interest rates and other functions . By 6 month ,Aave Total borrowing also reversed Compound, It now dominates both deposits and outstanding loans .
We can Aave Part of its success is due to its willingness to innovate and align incentives with users . in other words , It's hard to experiment with a proven real protocol .
about Aave or Compound In terms of the size of the market , Try may make 10 There is limited momentum for new ideas that put more than $100 million of collateral at risk . In its place , We can look for loans from younger projects and star studded communities, and market innovation can help DeFi New ideas from participants .
In this article , We're going to explore four markets that are all below 3 A billion dollar Youth Project , All of these projects are less than 10 Months , Some even have 3 Months .
Alchemix A loan with automatic repayment on the bank
Alchemix It has attracted much attention due to its unique future production plan .DAI Can be deposited as collateral , Users can borrow from it alUSD. A depositor can borrow up to 50% As alUSD. Their debt is made up of Yearn Finance The proceeds are automatically repayable .
The user saved DAI Is sent to the Yearn Finance yvDAI Treasury to make money . They don't pay interest on the loan , But by depositing Yearn Of DAI The income generated automatically pays off the debt . Besides ,「transmuter」 The benefits of this will increase returns ,「transmuter」 It's a protocol support mechanism , And as the main mechanism of anchor protocol synthesis token .
The important thing is to pay attention , In this setup , User collateral cannot be cleared by external forces , Because with the agreement from Yearn yvDAI The Treasury gains , User debt will only decrease over time . The obvious risk here is , If Yearn yvDAI The yield tends to 0%, In theory, the loan will never be paid off . If interest rates get lower , Users can still pay their debts manually .
Alchemix Currently from Alchemix The proportion of deposits in the current deposit is Yearn Finance Of DAI More than 2.6 Billion , There are 1.5 Billion alUSD In the converter , Convert to DAI And through the extra Yearn Deposits increase incentives .Alchemix Extra in the ecosystem TVL It exists in liquidity incentive and unilateral incentive mechanism .
alUSD Can be like DeFi Use it like any other stable coin in the ecosystem . It is widely used in Curve + Convex Upper alUSD Pool or Alchemix On the one side alUSD The farm .Curve Upper alUSD There are incentives in the pool , To encourage more liquidity will alUSD Trading to other stable currency pairs .
Besides ,Alchemix Farms were set up to encourage ETH/ALCX Liquidity in the market , In the Sushiswap On the transaction management token .
At present, the returns of each fund pool are as follows ：
alUSD3CRV pool ：30% APR
ETH/ALCX pool ：170% APR （ Notice that this is a mine pool 2 The farm , It means that farmers need access to ALCX, Native governance token ; This pool is high risk if ETH and ALCX The price deviation of , Will cause permanent damage .）
unilateral ALCX pool ：140% APR
unilateral alUSD pool ：30% APR （ About to stop ）
ETH/ALCX The pool is planned to move to a new one in the next few days Sushiswap Masterchefv2 contract .Sushiswap The new contract of the team has realized multiple rewards and liquidity incentives , This means that the pool will reward and pledge governance tokens ALCX and SUSHI Token users .
With Alchemix Maturity , Many experimental functions and advances of the protocol can be explored . Upcoming features include alETH and alBTC, More forms of collateral have been added to the agreement . For users who prefer to hold these assets rather than stable currency , The extra collateral is attractive . Risk collateral in Aave and Compound It has been proved to be successful .
stay Compound in ,ETH It's the biggest source of collateral , And in the Aave in ,ETH In second place . Once enabled ETH deposit ,Alchemix Collateral is likely to soar . Additional synthetic assets for people who want to go through Alchemix It's also attractive for token holders to visit a variety of lending sources .
Cream Finance Loans and Iron Bank My mortgage
Cream It's the first agreement on our list , Last year, 8 Month launch . The agreement slowly found its place in the ecosystem , And Yearn Cooperation becomes Yearn The ecosystem's preferred lending agreement . because Aave and Compound Maturity , The normal lending behavior is to find the best interest rate and the deepest liquidity in these markets .Cream The wide range of assets makes it a common third option for niche borrowers to use when necessary .
Cream At present, we support 78 Assets of different sizes and volatility , But its market size is significantly smaller than that of its competitors . Large depositors can easily expand the pool of collateral to reduce the annual interest rate on loans , Again , You can extract in bulk and raise interest rates . The end result is , Compared to the larger loan market ,Cream The interest rates offered are usually higher and more volatile .
Please note that , except 10 $ TVL outside ,Cream The number of users is relatively small （ about 9000）, But such a low number of users is actually DeFi The agreement is not the only one . by comparison ,Aave Only have about 40000 Users who have interacted with the protocol （ Only address ）.
Cream The biggest recent innovation is that it focuses on agreement to agreement lending without collateral , This may make it less important to pay too much attention to the number of users . In its place , Whether it's credibility or scale , Depositors and borrowers are given more weight .Cream Set a line of credit for zero mortgage borrowers on the address white list . It includes things like Yearn and Alpha Finance Such a trusted protocol .
This is an important innovation , Because it allows agreements to borrow assets without wasting its liquidity as collateral . therefore ,Iron Bank The product currently has 7.7 100 million dollars in collateral .
Smart farmers can be at many heights APY Farming their assets back and forth in the market . The following is in Iron Bank and Cream Some samples from the pool of funds with healthy liquidity in APY：
DAI、USDC：Iron Bank Basics APY about 6%,CREAM about 10%
wBTC：Iron Bank Basics APY about 7% ,CREAM about 1.4%
as time goes on , At present, the market has appeared a number of similar Iron Bank An agreement on the characteristics of an inadequate mortgage loan . We are exploring and implementing the integration of credit and bank accounts (Teller)、 Through identity and social media accounts （ Not announced ） And through pure governance driven voting (TrueFi) The idea of massive credit lines , And achieved some success .
Rari Capital Interest rate agreements Fuse Multi asset lending pool in
Due to the recent contact with Alpha Finance Integration of Bug,Rari Capital There is 1500 $10000 smart contract vulnerability , So there's been more attention lately .1500 Thousands of dollars in ETH Taken away .
After the vulnerability was attacked , We can judge the quality of investors' response to the turmoil . Agreements that respond effectively to unrest tend to gain more community trust and solidarity . Agreements that don't respond effectively often don't recover from the pressure .
Fuse The peak of deposits in 5 It reached about 5000 It's a $10000 ceiling , During the vulnerability attack and the subsequent market downturn, it fell to 2600 Thousands of dollars . Since then, deposits have rebounded to 3700 Thousands of dollars .
Despite the turmoil , but Rari Capital With its pace of experiment and innovation, it shows a certain degree of flexibility . Their unique lending pool allows the creation of any portfolio . This creates a unique market structure , And Aave and Compound Different , All of their collateral options are linked to all of the borrowing options in the quarantine pool .
stay Fuse in , These separate pools are set up to segregate assets , This allows isolation of risks and rewards , And in the Aave/Compound in , Any additional assets will be for every credit in the platform / Borrowers bring more or less risk . By isolating the asset pool , The assets in each pool only share the risk in that pool , Separate from the rest of the platform .
The size and high risk of these new markets enable prudent farmers to increase production . Interest rate and Aave/Compound The interest rate is the same in , Although the larger lenders may not be interested at the moment , But small farmers whose positions have little effect on liquidity can enter and leave these markets profitably without affecting the rate of return . Fortunately, , These entrances and exits affect only a single pool of funds .
Niche assets in Fuse It's not uncommon to see high utilization rates in . The following is from Rari Capital maximal Fuse Some of the returns from the pool .
- ALCX：25% The supply rate of APY
- USDC：23% The supply rate of APY
- DAI：12% The supply rate of APY
Interest free 、 Efficient mortgage Liquity
Liquity Based on the MakerDAO On top of most of our innovations , At the same time, a unique experimental change was made . And MakerDAO similar ,Liquity Management by ETH Support the issue of stable currency , They call it 「troves」, Its function is similar to Maker Of CDP.
from MakerDAO To Liquity Some of the key changes ：
- Governance token -> Zero governance
- Different collateral , rely on USDC -> ETH-only Collateral
- Interest controls issuance -> Redemption controls issuance
- MKR Burning to add value -> unilateral LQTY Mortgage to get a reward
Liquity By charging an algorithmically priced one-time borrowing and redemption fee and in 110% Mortgage clearing Treasury to achieve interest free lending and stability . by comparison ,MakerDAO Use interest rates to encourage / Stop borrowers . Through to Liquity Charge for borrowing and redemption , Lenders and mortgagors are motivated by this potential profit , The borrower can pre calculate the fee , You don't have to worry about interest rate fluctuations .LUSD Pay at the time of borrowing , and ETH Pay on redemption .
With 110% The minimum mortgage rate is from trove Issued LUSD It can be stored in the stabilization pool , stay LQTY Earn about 36% Of APR.LQTY At present, we can pass Staking LQTY Get as much as 134% Of APR.
Please note that ,LQTY The mortgage reward rate is 134% APR It's a highly variable 7 Day rate . In times of high redemption rates , This reward can be very high , And at other times , It could be much lower .
Understand the risks of the agreement
We noticed that , Although in all the agreements mentioned, high returns are attractive , But the risk also increases . The high returns expected by farmers holding new governance tokens from failed projects will become meaningless , And those long-standing projects are more likely to keep their value .
Besides , As more tokens are made , High inflation in token supply tends to reduce prices over time , Because more supplies are circulating . Farmers should try to find out if their returns are lagging behind 、 Keep up with or exceed token inflation . If interest rates look incredibly high , So one of the two things is almost certainly right ： You really found it alpha Or a significant increase in risk .
The unlock schedule may vary from project to project . at present ALCX The supply of is increasing about every month 43%. If the holder is exposed to in their strategy ALCX, Their goal may be to surpass inflation . If they believe in the long-term value of governance tokens , So it may not be that urgent for their strategy .
Liquity Our supply follows 32,000,000 * (1–0.5^year) Annual inflation plan . This means that about 1600 ten thousand LQTY. this 12 A period of three months will mark the current inflation rate of the cycle supply of about 3.3 times .Rari The role of governance token in ecosystem is small . stay 60 In days , It is used as a 12.5% Send it to the team , The rest is sent to protocol users . The schedule for unlocking is very different , You need to understand how any tokens you hold are revalued over time .
According to your risk tolerance , The strategy you choose will adapt to token inflation . Ideally, keep the risk to a minimum , At the same time, try our best to surpass inflation . Besides , You want enough buyers / Holders see some value support for holding tokens .
High inflation without sellers can create a strong market , High inflation with high turnover leads to a negative slope in the price chart . The token attributes such as agreement income and the value accumulation mechanism of other token holders will encourage the token to buy and hold the token .
Liquidity mining usually involves rewards in the form of governance tokens , But its value usually has nothing to do with anything . Even those tokens that reward the holder with agreement income , Usually only a small income . The decline in the value of these tokens is usually severe and persistent , Because farmers will soon be able to sell their rewards . We are DeFi We can see that the inflation rate of token may exceed 100000% The situation of . People should do their best to understand the inflation schedule and any other associated risks .
New loan agreements have been coming out over the past year , And carried out experiments and innovations in different degrees . They have emerging markets , Highly motivated returns 、 High risk and plenty of space , It can be done through small user groups and close integration 、 A highly engaged community . The bigger the deal and the bigger the market , The less malleable and adjustable it is . Some of the best rewards usually come from communities actively involved in emerging projects , It's important to understand the quality of the team and the community .