dAMM Finance is building a decentralized borrowing and lending protocol for crypto assets that is “highly capital efficient” and accessible for many token projects.
Credora is partnering with dAMM “to conduct privacy-preserving credit evaluations and real-time risk monitoring on eligible dAMM borrowers.” The partnership will “enhance capital access for creditworthy institutions and secure capital allocation across a diverse selection of borrowers.”
Stablecoins dominate credit markets “within crypto, but hundreds of other assets could benefit from liquid crypto lending markets.”
dAMM is reportedly “building efficient credit lending pools across a large selection of crypto assets.”
dAMM’s uncollateralized lending platform “determines interest rates algorithmically for any token lending pool.” Token suppliers and market makers “interact directly with dAMM on-chain for transparent and efficient lending.” The crypto liquidity pools “are unique to each token asset and entirely transparent and publicly accessible via their respective blockchains.”
Credora’s services reportedly have “a proven track record across various DeFi applications.”
Credora’s credit evaluation “encompasses a detailed and data-driven evaluation of a borrower’s real-time risk, KYC, and financial statements.” Similar to other applications, dAMM gains from “an aggregated and efficient onboarding solution that manages counterparty credit risk, without borrowers needing to reveal sensitive data.”
The dAMM protocol “allows lenders to earn interest on idle assets. The second-order effect of added liquidity to the projects supports their long-term growth.” dAMM creates “a flywheel for projects and assets that benefit from passive yield generation while adding liquidity for ecosystem participants.”
Borrowers benefit from transparent and efficient lending “based on dAMMs algorithmically determined interest rates for each lending pool given the utilization rate of the pool’s assets.”
These efficient pools will “add liquidity to the crypto ecosystem while suppliers earn on their assets.”
As noted in the update, dAMM is “an institutional lending platform for any token with algorithmically determined interest rates.”
Token issuers with a liquidity pool on dAMM Finance’s platform, market makers, and investors can “borrow on dAMM to provide liquidity and trade across all centralized and decentralized trading venues.”
As mentioned in the announcement, Credora “enables data-driven and transparent lending across CeFi and DeFi.”
The team has “developed private credit infrastructure that evaluates the real-time creditworthiness of borrowers while protecting sensitive data.” To date, Credora has “facilitated $800m+ in uncollateralized loans across 100+ borrowers & lenders with clients and can help well-capitalized, risk-managed borrowers borrow transparently and securely.”
Credora currently “monitors over $4 billion of borrower assets with coverage across most CeFi venues while covering DeFi and staking activity from 14 EVM compatible chains and Solana.”
Credora (X-Margin) “raised $8 million in a Series A funding round backed by leading digital asset investors.”