On last 18th November, Maple Finance and Alameda Research launched the first syndicated on-chain loan vehicle in DeFi space.
This vehicle is built by Maple Finance and will be used by Alameda Research first who is a quantitative crypto trading firm and founded by FTX’s Sam Bankman-Fried.
This lending vehicle will lend crypto from A single borrower lending pool to reliable non-U.S. institutions.
Syndicated loan is a loan provide by a group of lenders and bank coordinate as a middleman.
But in this crypto and decentralized world, there is no middle layer.
As of 22th November 2021, I could find 4 liquidity pools that are for Alameda Research, Maven 11, Blocktower Capital and Orthogonal Trading. Total pool size is already over $350M.
Based on recent plan and fast growth of this industry, the committed capital will be over minimum $1b.
DeFi’s advantage over traditional debt capital markets is borrower could get more capital fast through on-chain borrowing process. It’s no need to wade through months of bureaucracy for one-off transactions to come through.
The lenders up to now are Coinshares, Abra and AsendEX.