Altitude, a DeFi lending service, is set to revolutionize the lending market by automating dormant funds in overcollateralized loans to seek additional yield opportunities. The company has successfully completed on-chain testing and is preparing for a closed beta, which will be available to whitelisted addresses. The full launch will follow, with plans to expand to other EVM-compliant L1/L2s and integrate with all leading lending protocols and yield sources.
Blockchain technology has enabled lending mechanisms that were previously impossible. Users can now borrow funds without any credit history, Know Your Customer (KYC) verification, or even registration. This has led to lending becoming the main use case in decentralized finance (DeFi), accounting for over one-third of the total value locked (TVL) in DeFi apps as of the end of 2023.
However, the lack of credit history and registration means borrowers must lock in an amount of crypto that exceeds the loan’s value as collateral. This often results in significant unused capital sitting idle and untapped, creating high capital inefficiency in the DeFi lending and borrowing markets.
Altitude has found a solution to this problem. The protocol automates the management of collateralized debt by adjusting the LTV ratio in real time. This approach maximizes capital efficiency while maintaining a safe liquidation risk profile. Altitude has already attracted interest from major players and recently completed a $6.1 million seed round.
If the value of the collateral increases and Altitude determines that a loan has excess available collateral, the protocol allocates it to various platforms to generate income. If collateral is suddenly needed back to secure the loan, the protocol automatically rebalances the loan to maintain the targeted LTV. Altitude also connects with major DeFi lending protocols and yield aggregators to get better rates and seek yields.
When users take out loans from the Altitude vault, the system optimizes their capital by refinancing user loans continuously at the best available rates, actively managing the dormant capital to generate yield, and repurposing the generated yield to reduce the user’s debt. This way, the debt is gradually reduced even when users fail to repay it.
Altitude was founded by a collective of Web2 and Web3 veterans with the aim to transform the DeFi lending space by maximizing capital efficiency. Tobias van Amstel, one of the co-founders of Altitude, said, “We are building Altitude to automate what people do every day to ensure their capital is working as hard as it can.”
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Tobias van Amstel, Michiel Lescrauwaet, Marc Zeller |
| Companies | UDHC, Flow Ventures, Altitude, Owl Ventures, New Form Capital, GSR, Compound, Aave, Tioga Capital |
| Currencies | Ethereum, Aave, US Dollar, cETH, Bitcoin |
| Securities | None |
