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Use Cases
The Atlendis protocol was built as a base layer for enabling all use cases in need of uncollateralized liquidity. The protocol's unique core features open up a new world of use cases that were not achievable before. Here are few examples of how the Atlendis protocol can benefit other Web3 actors.
OPEX (Operating Expenses) are the sum of day-to-day expenses of a company. In Web3 a lot of the companies OPEX relies on liquidity management, such as fast withdrawals.
Fast withdrawals usually refer to a feature mostly implemented on DEXs (Decentralized Exchanges) to allow their users to withdraw from one layer to another instantly. Here is a good definition of what fast withdrawals are and how they work:
"Fast withdrawals utilize a withdrawal liquidity provider to send funds immediately and do not require users to wait for a Layer 2 block to be mined. Users do not need to send any transactions to perform a fast withdrawal. Behind the scenes, the withdrawal liquidity provider will immediately send a transaction to Ethereum which, once mined, will send the user their funds. [...]" - dydx doc
As stated above, fast withdrawals are relying on what is called a "withdrawal liquidity provider" to send funds immediately. Most of the time, these liquidity providers are the DEXs themselves. This is extremely capital inefficient as the liquidity needs vary depending on the market conditions, resulting in unused liquidity in low trading periods and a lack of capital in a market surge.
Instead of managing this with their own balance sheet, a DeFi protocol could open a credit line on the Atlendis protocol and adjust their needs depending on the market, thus turning this CAPEX (Capital Expenditure) into OPEX.
DAOs are structurally exposed to high currency risk, as most of their treasury relies on their native tokens that by nature are volatile assets. Most of the time these include ERC20 tokens built on the Ethereum blockchain and thus are exposed to ETH volatility while embedding their own protocol risk.
In order to counter this risk DAOs can use those native tokens as collateral on over-collateralized lending protocols to borrow stable coins. That being said, very few DAOs have their tokens listed thus preventing them to borrow which makes this solution not sustainable for the majority of the ecosystem.
To counter this problem we've seen lately a trend in which most DAOs resort to dilutive approaches such as raising stablecoins through VCs, Angels and/or individuals. This approach proved itself successful but it comes with a high cost.
In web2, most start-ups and more mature companies negotiate with banks to have access to revolving lines of credit to cover a part of their OPEX in a more capital efficient and non-dilutive way. We strongly believe this can be also achieved in Web3 and are thus proposing access to credit lines to DAOs and DeFi protocols.
Market making and arbitraging are two trading activities that are essential to financial markets, the first providing depth and liquidity to markets while the latter is enhancing its efficiency.
Market makers and Arbitragers both require liquidity to perform/scale their strategies and while the DeFi market becomes more and more mature, we see such actors becoming more and more professional, making them great potential customers of the Atlendis protocol.
Last modified 8mo ago