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. More information is also available in the Safety & Audit section of the Gitbook.
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.
At launch, the Atlendis protocol is operating on the Polygon network.
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 vary from pool to pool, and the the borrower decides the asset they wish to borrow at the pool’s creation. 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.
Lenders will be able to stake their Position NFTs to earn rewards. However, unlike other staking programs, Atlendis implements a lock-drop scheme which modifies how the rewards are calculated.
Basic staking programs distribute a fixed amount of tokens per block amongst stakers based on their weight. If a staker represents half of the staked amount, they will get half of the rewards per block.
Staking on Atlendis will be different. Positions will be locked and the lock-up period and the size of the position will determine how much rewards the staker will get at the end of the lock-up period.
Staking contracts are deployed at the pool level, meaning that each pool has its own staking program with a specific amount of tokens to distribute. Once the rewards run out, that program can be considered completed and the smart contract can be deprecated.
If needed, a new smart contract can be deployed to enable a new liquidity mining program.
Lenders will be required to lock their position for any period of time between 2 weeks and 3 months. Longer lock-up periods will increase the rewards multiplier, thus increasing the total rewards obtained at the end of the the lock-up period.
In order to be able to stake their position, Lenders will need to:
- 1.Connect their wallet and have an eligible pool position.
- 2.Navigate to the staking section and “stake” that position. At staking time, Lenders will be required to select the position to be staked from the available options and enter a lock-up time period.
Position size and lock-up period are going to determine the rewards that the Lender will receive at the end of the lock-up period.
Yes. As a Lender, you are able to stake multiple positions in the same staking contract. However, Lenders will be required to perform a transaction for each position to be staked.
At the end of the lockup period, Lenders will need to manually unstake their NFT and claim the rewards from the Staking Pool Details Page of the Staking section in “My Dashboard.”
Yes. Lenders can unstake a position before the conclusion of the lock-up period. However, by doing so, the Lender will be forfeiting the rewards that they would otherwise be able to claim at the end of the lock-up period.
Lenders’ forfeited rewards are then returned to the staking program’s rewards pool.
Yes. Nothing prevents a Lender from re-staking a position that has been already staked in the past, as long as there are enough staking rewards available for the position to be re-staked.
However, we encourage lenders to stake their position as long as possible to secure the maximum rewards.
Upon pool closure, the protocol restricts the ability to further deposit funds into the pool or change the rate of an existing position. It only allows withdrawals.
Since the Staking program is on a different set of smart contracts, closing the pool does not have any direct impact on the staking program or on staked positions. After closing the pool, the protocol will honour the rewards of positions that were staked before the pool closure and finally reclaim the pool's remaining rewards.
This means that users will no longer be able to stake positions, but already staked ones will keep on accumulating rewards until completion of their lockup period, then allowing users to claim the rewards, un-stake their positions and withdraw them from the closed pool.
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.
- Yield from the third-party yield provider when funds are not lent out – currently it is Aave.
- 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 the first iteration of the Atlendis protocol, liquidity providers of a specific pool cover the loss if the borrower defaults on that pool.