In this post:
- After its recent public launch, the DeFi lending platform, Altitude, has surpassed $10 million in deposits.
- Retail users seeking to optimize their crypto collateral to maximize borrowed capital safely have influenced the rapid deposit growth. Â
- Altitude has received $6.1 million in funding from Web3 VCs such as Tioga Capital, New Form Capital, and GSR.Â
Altitude, a DeFi lending platform, has surpassed $10 million in deposits within just a few weeks of its public launch. Retail users who sought to optimize their crypto collateral to maximize borrowed capital have influenced the rapid deposit growth.
According to the live report on Dune, the current total value locked (TVL) deposits are $10,508,072.76. Altitude received $6.1 million in funding from Web3 VCs like Tioga Capital, New Form Capital, and GSR. The achievement follows the completion of the protocol’s private beta, which ended mid-June.
Altitude protocol inspires positive investor confidence
The Altitude protocol addresses on-chain borrowing with capital efficiency and secures loans against under-collateralization. It has outperformed traditional on-chain lending protocols that maintain an LTV of 30-40%, leaving up to half of all capital unused. Altitude’s automatic rebalanced borrowing feature, based on fluctuations in the price of collateral such as BTC and ETH, ensures optimal loan-to-value (LTV) ratios.
The protocol manages collateral such that when collateral value rises, it borrows additional funds and directs them into yield-generating strategies that help reduce the loan balance. When collateral value drops, Altitude reallocates funds to the lending pool to maintain an ideal LTV. The platform has channelled positive investor confidence through its ability to deliver the opportunity to maximize yields safely. Loan health tied to LTV is displayed on the platform’s dashboard, with options for adjusting parameters.
The DeFi lending platform has doubled down on making decentralized finance more user-friendly and capital-efficient. The private beta that concluded last month hit $5 million in TVL. Altitude also revealed that it can now split capital between a 30-day Pendle PT, a Curve LP, Morpho USDC, and still keep 10% farming the next big airdrop.
DeFi lending surges as user base grows 40 times since 2020
Dune Analytics revealed that in the past two years, around 4 million users have joined DeFi applications, including lending platforms, over 40 times larger than the 2020 user pool. According to the data, the current user pool is nearly 250 million unique addresses. The DeFi Pulse report revealed over $40 billion in total locked value (TVL) in cryptocurrency.
According to a report by Hedera, Over-collateralization in DeFi has been a significant challenge for lending platforms, typically requiring users to hold at least 1.5 to 3 times more capital. It added that the lending platform takes custody of the collateral until the loan is fully repaid, allowing lenders to keep vast amounts in crypto assets. The report revealed that users tend to go for such loans in hopes that the asset will increase in value over time rather than spend them. Altitude’s focus on under-collateralization has been to target people who don’t have enough assets to over-collateralize.
