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Lend is a DeFi marketplace for institutional unsecured loans. Users can deposit their capital in single-borrower, insured pools, created and launched on Ribbon Lend by institutional borrowers (like Folkvang and Wintermute, just to name a few) who have been whitelisted. Lenders can receive favorable risk-adjusted interest rates in exchange for providing liquidity, while whitelisted institutional borrowers can borrow money from a decentralized source without the need for collateral.
Lend offers the best of both worlds between TradFi and DeFi:
- 1.Yields from unsecured lending; you can decide independently how much and in which pools to deposit, based on your preferred risk/return profile.
- 2.No lockups from Aave’s money market model; you can withdraw whenever you want, the overall amount of funds that can be withdrawn is determined solely by the utilization rate of the pool.
- 3.Off-chain enforcement / credit underwriting;
- 4.Built-in insurance.
All loans in our structured products, including Earn and new vaults, will flow into Lend pools. This allows us to leverage our structured products as a reliable and sizable source of lending deposits in the credit facility.
Furthermore, this allows our structured products to be redeemable on a weekly basis and potentially even on a block-by-block basis, attracting further TVL.