1 month ago by Patryk
I've been researching onchain credit every day for the past month, mapping 115 protocols, startups, and institutions at the intersection of credit and DeFi. This is a first edition curation of all things hot in onchain credit.
If you're interested in or are building in this space, follow @Solofunk. I'm releasing a comprehensive report on the state of onchain credit in a couple weeks at @serotonin_hq. For now, here's what you need to know.
@agra_gg partnered with @capmoney_ to enable instant redemption for ynRWAx, a tokenized offchain credit fund by @YieldNestFi. Why does it matter?
Well, any crypto nerd should take 30 minutes to understand what Cap has built because it's dope, but TLDR: Users deposit stables that are then lent to crypto-native borrowers who don't need to post any collateral. Loans are not collateralized in the traditional sense, like on @maplefinance, but they are effectively overcollateralized at the protocol level via restaking.
Restaked assets on @symbioticfi or @eigencloud are seized if a borrower defaults. Cap stays solvent, restakers eat the loss. In most cases, restaking protocols like @ether_fi underwrite and extend credit to borrowers. Cap just provides the capital.
YieldNest's $ynRWAx isn't yet a proven product. So, in this case, YieldNest itself is posting $2.7M in $OETH collateral via EigenLayer on its own behalf. Currently, it's borrowing $943K from Cap to provide standing liquidity on Agra, a central limit order book (CLOB) for fixed-income assets. ynRWAx tokenholders can now tap this liquidity for instant redemption to USDC.
@ValinorDigital raised a $25M seed round. Why does it matter?
Onchain credit is hot. That's proven with this raise. Founded by two ex-Blackstone (world's largest alternative asset manager) employees, Valinor aims to re-architect credit origination by using smart contracts and shared ledgers to underwrite, structure, execute, and monitor credit transactions. It's an onchain private credit firm.
The initial focus will be on extending asset-backed credit to tech-native borrowers who generate verifiable cash flows but are underserved by traditional credit markets. Longer term, Valinor envisions a world in which credit moves entirely onchain in what they call "Open Credit."
Valinor is one to keep tabs on!
@MidasRWA raised a monster $50M Series A. Why does it matter?
Midas is a leading vault infrastructure provider with $470M in TVL. The raise comes off the back of the launch of Midas Staked Liquidity (MSL) and Midas' $40M deployment into it. MSL is a liquidity vault that supports instant redemptions across Midas' other vaults, where depositors invest in tokenized shares of externally managed investment strategies. Two of these are private credit vaults:
mF-ONE: Midas’ largest vault, comprising 14.5% of the protocol’s TVL at $68 million. The underlying strategy yields 12.5% APY and is diversified across private credit investments deployed by @FasanaraDigital. Core to mF-ONE’s growth has been the fact that it serves as collateral on @Morpho, where a 5.5% borrow rate presents an attractive spread. That's evident in the market’s 88.7% utilization rate ($15.3M mF-ONE deposited and $13.6M USDC borrowed).
mGLOBAL: Midas' newest vault is also managed by Fasanara, with the underlying strategy focused on short-dated trade receivables and digital invoices bought from corporate SMEs. @infiniFi is set to be mGLOBAL's anchor investor with a $25M commitment.
The raise highlights what I've learned over the past few weeks: Midas is a core vault infrastructure provider whose vaults offer exposure to diverse, high-yield strategies, and the corresponding vault receipt tokens are increasingly being integrated across DeFi.
@SiloFinance launched V3 last week. Why does it matter?
Silo is attempting to solve the RWA liquidity problem with V3, which introduces a new dual liquidation mechanism that functions as follows:
Liquidation: When a position falls below the liquidation threshold, liquidators can seize collateral and convert it to USDC via instant redemption paths or on a DEX with sufficient liquidity.
Collateral-Debt Swap (CDS): If liquidation is not viable, or the position exceeds the CDS threshold, Silo V3 swaps a borrower’s collateral at a discount for the lender’s debt. The collateral asset is distributed, including a liquidation premium, proportionally among the market’s lenders, while the borrower's position is reduced or closed.
The CDS route could be particularly attractive for lenders who don't require immediate liquidity and are willing to hold assets to realize yields stemming from acquiring discounted assets. This may be especially enticing in markets with high-quality, tokenized institutional credit funds, like $ACRED and $JAAA. For now, only longer-tail credit assets like mF-ONE and avUSD are supported, but interestingly, no assets have been supplied in those markets yet.
@Loopscale partnered with @FissionXYZ and @multiliquid_xyz to launch the Permissioned RWA Instant Settlement Market (PRISM). Why does it matter?
Fission and Multiliquid are two liquidity protocols shaping up to become key players in risk management for illiquid RWAs. Onchain composability requires near-instant settlement. That's something many RWAs, like tokenized credit funds, don't have. This presents problems for onchain lending and leveraged looping.
Consider an asset with once-a-quarter redemptions. Looping it at 4x leverage on Loopscale means your position could take a year to be closed. PRISM fixes this by allowing liquidity providers to step in with capital, fill the gap, and earn a predictable return. First up is Apollo's $ACRED via @Securitize, which can now be instantly redeemed on @solana for a sub-2% haircut.
@JupiterExchange launched Jupiter Offerbook, a fixed-rate, peer-to-peer money market. Why does it matter?
Collateral options are unlimited, enabling illiquid assets like NFTs, memecoins, and RWAs to serve as collateral due to the lack of price-based liquidation. Lenders must price risk using loan parameters that are fully customizable across collateral type, interest rate, loan size, and duration. Assuming conservative underwriting, borrowers are incentivized to repay loans on time, as posted collateral is liquidated if the loan is not repaid.
Jupiter Offerbook is an extremely bespoke peer-to-peer money market, just like @WildcatFi, but serves a wildly different use case, with the core difference being that Wildcat markets are not collateralized and reputation-based. The test will be whether lenders will be willing to underwrite illiquid assets on Jupiter Offerbook. If they are, offers will surely come with extremely favorable terms for the lender, potentially limiting borrower appetite.
@stable_summit, @rwasummit, and @Vault__Summit hosted incredible events at @EthCC this week, not to mention last week's institutional focus at @blockworksDAS. Unfortunately, I wasn't in NYC or Cannes for either, but saw the quality from afar (online). Exciting times at the intersection of finance x crypto! Listening to these panels is gonna keep me busy, and FYI:
Next Stable Summit is in NYC on June 4th, 2026
Next Vault Summit is in NYC on June 5th, 2026
Next DAS is in London on October 20th - 21st, 2026
If you read this far, I appreciate you and would love to hear your thoughts! Let me know if you'd like me to cook up a second edition in April 🫡
Reactions and replies to this article.
Cole
@colerealfi
Yes pls cool up a second edition in April . So many originators are hunting for liquidity . There are so many in the space solving for it as it is the thing everyone needs . The post really help organize who and potentially where it might be . Keeping it all straight is hard
Katherine Ross
@bykatherineross
i was v surprised to see the $50M raise in this market, which definitely shows where the tide is turning for the broader industry imo
Silo Labs | V3 Live
@silofinance
h/o for the great review Silo protects lenders from bad debt & offers lenders better yields!