Atlendis is a capital-efficient DeFi protocol enabling uncollateralized crypto lending to institutional borrowers. Atlendis enables lenders to deposit digital assets in a single pool per asset and per borrower, and to earn liquidity rewards while funds are unused and additional rewards as funds are lent out.
Atlendis Labs has mandated Runtime Verification to audit the protocol’s smart contracts. The audit report is available on the following page.
Anyone can use the protocol to lend assets. Only whitelisted institutional borrowers can take out a loan, for more information please refer to the borrower FAQ.
The Atlendis protocol is operating on Ethereum mainnet and Polygon.
Each liquidity provider’s deposit on the Atlendis protocol is characterized by a position. The positions are represented by an NFT with original artwork. A position is characterized by:
- Borrower pool
- Chosen lending rate
- Quantity of bonds held if the pool is actively used by the borrower and the funds in the position have been borrowed
- Amount of unused capital placed on a third-party liquidity protocol (i.e. Aave).
All pools on the Atlendis protocol are single-asset pools. The type of assets that lenders can deposit on the Atlendis protocol depends on the assets required by the borrower at the pool’s creation time. Lenders can filter the pools by asset type in the “Atlendis” section of the dApp.
Information about the borrower is available on the borrower's pool page.
Either the borrower is not currently borrowing from their pool, or other liquidity providers in the pool have set lower lending rates and therefore, their funds have been lent on a priority basis.
Looking at the maximum borrowable amount and the volume weighted average lending rate should give lenders an indication of how likely their funds are to be borrowed.
This can be found on the position page of the dApp.
The lender's lending rate should depend on the lender’s own risk assessment of the borrower’s default risk. Note that since unused capital benefits from Aave’s APY, it is highly recommended to choose a lending rate that is higher than Aave’s rate to ensure that the lender actually benefits from having their capital borrowed.
Yes, the chosen lending rate must remain within a range set at the pool’s creation time.
The maximum rate is fixed with the borrower at the pool’s creation time. It is the highest rate at which the borrower might be willing to borrow. Having a maximum rate removes the risk of a borrower never using their pool, which would be detrimental for lenders.
Unused capital is placed on Aave, benefitting from Aave’s APY. Having a minimum rate that is higher than Aave’s yield eliminates the possibility for lenders with no capital actively loaned out to benefit from a higher rate than lenders with actively loaned out capital.
The maturity of a loan is a parameter that is fixed at the opening of the pool and visible on the pool’s description card.
Funds that are not actively loaned out are withdrawable at any time. Funds that have been loaned out cannot be withdrawn, but lenders’ positions can then be sold as an NFT (as described in Position) on an NFT marketplace.
Liquidity providers can change their position's lending rates as long as their funds are not actively loaned out.
Yes, gas fees.
The cool down period is the minimum period of time that the borrower must respect between two borrows.
If part of the funds are actively loaned out, the funds cannot be withdrawn until repayment. It is optimal to withdraw during the cool down period to prevent the funds from being borrowed again.
Funds that are not actively loaned out are deposited on Aave, earning Aave’s APY on top of liquidity rewards paid by borrowers as an interest on unused capital.
Lenders start accumulating liquidity rewards as soon as their funds are exposed to being borrowed. That is on day one if the pool is not actively used, and at repayment time if the pool is fully used at deposit time.
Aave was selected as it constitutes a highly trusted third-party yield provider.
- Aave’s yield
- Liquidity rewards – called liquidity fees for borrowers – are fees paid out by borrowers to lenders as an interest on unused fees, similar to commitment fees in traditional finance
- The lender's chosen lending rate when actively lending to borrowers
- Late repayment fees in the exceptional case the borrower enters a recovery period.
The minimum APY earned on the Atlendis protocol is Aave’s yield, plus potential liquidity rewards paid by the borrower.
Yes, interest earned on the Atlendis protocol is calculated based on both the initial deposit amount and the accumulated interest.
In Atlendis V1, liquidity providers of a specific pool will bear the loss of funds in case of default of the borrower of that pool.