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DeFi future? 7 Fractional Mortgage Lending Protocols for Institutions

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Institutional lending is emerging as the fastest growing segment of DeFi.

Original author: Viktor DeFi

Original compilation: Jack(0x137), BlockBeats

Overview

First of all, a partial mortgage is not a new concept, it refers to a loan where the borrower's collateral is not enough to pay the amount taken. This concept has existed in traditional finance for many years, but the term "unsecured loan" is often used. With DeFi, partially collateralized loans are more accessible and profitable for retail investors, but not without risk.

At present, institutional lending is gradually becoming the fastest growing part of DeFi. Best of all, users can earn handsome returns on their stablecoins by lending money to institutions.

Institutional loans, the collateral is usually in the form of credit scores, identification, bank balances, etc. Most importantly, these institutions are properly KYC certified and lending thresholds are given to protect the interests of lenders. Of course, some inherent risks will still exist, and these risks will also be explicitly placed on the terms of these platforms.

Previously, retail investors triggered the first wave of DeFi popularity, and institutional borrowers will start second wave.

Generally speaking, most financial instruments in traditional finance are reserved for the elite, But DeFi makes it possible for everyone to participate. Most importantly, retail investors can now lend to prime capital markets and earn handsome returns on their stablecoins.

Exciting projects (in no particular order):

1. Maple Finance

Maple Finance is A credit market that provides institutional borrowers with fractional mortgage loans and lenders with yield opportunities. Built on the Ethereum mainnet and Solana, it brings growth to institutions seeking on-chain capital.

With Maple, lenders have the opportunity to earn sustainable income. In addition, the protocol has two governance tokens (MPL and xMPL), enabling token holders to participate in governance, share fee income, and more.

2. Clear Protocol

Clear Protocol is also built on the Ethereum main network and Polygon, is a Decentralized unsecured institutional capital markets. With Clear Protocol, institutions can access funds from a decentralized network of borrowers without collateral.

Lenders can obtain attractive interest rates through their USDC, and use their native USDC Token CPOOL pays additional LP rewards. Anyone can lend and claim CPOOL rewards at any time.

3. Goldfinch

Goldfinch is a credit protocol that provides on-chain and off-chain collateral institutions and businesses provide loans. Goldfinch uses the principle of "trust by consensus" to distribute funds to borrowing institutions.

Investors are divided into Backers and Liquidity Providers, both of which benefit from their investments obtain sustainable income. The protocol also distributes its native token GFI to supporters on a regular basis.

4. Atlendis

Atlendis allows business entities to trade from decentralized Credit is borrowed in a pool of lenders. Additionally, an NFT is generated to represent the parameters of the agreement between the lender and borrower. Additionally, lenders on Atlendis are rewarded even if they have not yet been matched with a borrower.

5. TrueFi

TruFi is an unsecured marketplace that lends to institutional investors and Provide lenders with sustainable rates of return. Built on the Ethereum mainnet and Polygon, TruFi aims to redefine institutional lending.

Lenders can pledge USDC, USDT or TUSD to the TruFi pool and lend to borrowers . In return, get a high return on capital, plus TRU Token incentives.

6. Teller

Teller Protocol is a lending marketplace using an open order book model. On Teller, borrowers are not limited to leading institutions, but can be creators, businesses, DAOs, protocols, and more.

In fact, they recently partnered with Chainlinks and DECO to build a proof of concept for issuing Partially collateralized crypto loans.

7. Zest Protocol

The Zest Protocol enables Bitcoin liquidity providers to obtain Bitcoin income, the lending pool lends encrypted assets such as BTC to credible borrowers. Zest also provides on-chain Bitcoin loans to institutions based on the balance sheet.

We’ve seen DeFi on Ethereum, imagine it on Bitcoin what it looks like.

Additionally, Credora Also worth mentioning. Credora is a lending solution that accelerates credit by facilitating credit assessment and real-time risk monitoring. They provide credit ratings for institutional lending platforms such as Maple, Atlendis, and Clear Protocol.