Within a few hours of going live this week, dAMM Finance had already secured more than $1.1M in liquidity to their on-chain transparent lending platform. Volumes are expected to continue to grow substantially with the introduction of the liquidity mining incentives too. Sustainable real yields of over 10% on more than 20 available token pools at launch have created an excited buzz across the DeFi community. Hundreds more tokens are set to be made available over the coming months.
A new generation lending and borrowing platform, dAMM Finance aims to solve some of the biggest issues institutional lenders and borrowers face in DeFi today around capital inefficiency and a lack of transparency, as well as better access to tokens, not just stablecoins.
Undercollateralized loans, access to competitive real yield, algorithmically determined interest rates and on-chain transparency are all features that make dAMM a new and unique proposition that has got a lot of the DeFi community excited.
dAMM is aiming to become the de-facto crypto lending platform
Next up for dAMM Finance, they’ve set their sights on aggressively targeting existing institutional lending and borrowing platforms such as AAVE and Compound, where lenders currently have to endure lower rates than US treasury bills.
The overcollateralized nature of these DeFi lending protocols means that use cases are limited and supply-side growth is often far outpacing demand-side growth, dragging down the lending rates on offer. dAMM solves this issue by only allowing trusted institutions and market-neutral market makers to participate as borrowers, and providing fully transparent on-chain data showing exactly where these borrowed funds are being invested. This provides increased security for lenders and enables dAMM to offer much higher, sustainable interest rates.
dAMM aims to unite all crypto lending into a single community-owned platform capable of providing competitive yields and continuous innovation for everyone, and are set to aggressively incentivise DeFi lenders to migrate their assets across in the coming weeks.
About dAMM Finance
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 the platform to provide liquidity and trade across all centralized and decentralized trading venues.
This post is commissioned by dAMM Finance and does not serve as a testimonial or endorsement by The Block. This post is for informational purposes only and should not be relied upon as a basis for investment, tax, legal or other advice. You should conduct your own research and consult independent counsel and advisors on the matters discussed within this post. Past performance of any asset is not indicative of future results.
© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.