Lending markets remain a quintessential aspect of the cryptocurrency market, and they stem well beyond provision of margin to traders. The dominant players in lending are exchanges, a small number of DeFi platforms, and established centralized lenders. Meanwhile, the primary target market is retail traders, institutional traders, and miners.
Over the past two years, DeFiner has worked to combine the best competitive advantages each current market player provides, and offers it in a single product.
Retail traders are careful on middleman fees and hence have become the primary customer of DeFi platforms.
DeFiner offers this market segment exactly what they seek: maximized APR for lenders and minimized interest for lenders by aggregating multi-platform yield for unborrowed and excess collateral assets.
Institutional traders, while also careful of middleman fees, tend to have specialized agreements with exchanges and hence are less concerned about the middleman taking a slice. Their main concern is predictability on loan rate and loan period, as their trades carefully take into cost of margin and loan period.
DeFiner's peer-to-peer fixed term, fixed rate loan option outdoes exchange lending for institutions in every way: institutions completely avoid the middleman fee while also enjoying the predictability of the loan terms that are critical to their operation.
- Institutional Borrowers (like miners)
Institutional borrowers are large crypto-focused businesses, especially miners. Such businesses require large, long-term loans, often with flexible conditions to reflect unexpected fluctuations in the price of Bitcoin.
Such businesses opt for OTC lending. With the help of DeFiner's strategic investor, Canaan, which is one of the largest miners in the world, DeFiner has developed solutions to support institutional borrowing in a DeFi platform, while reflecting all the necessary components such large borrowers seek.
DeFiner is the first DeFi project to integrate OTC lending into an on-chain solution. As these OTC orders are handled through a marketplace, they are open to miners' dedicated lenders, and also to retail. This opens the reach of retail directly to institutional borrowers for the first time.
A growing segment in crypto loan is the inexperienced retail. This is, in fact, the greatest growth segment with room for exponential new user acquisition.
Inexperienced retail, or the mass market, is highly risk averse and accustomed to convenience. Hence, they opt common onramps as their go-to for exposure to the DeFi market. This includes services like Coinbase, which offer a lowly 1% yield, alongside intransparent and centralized solutions like Celsius and BlockFi.
Inexperienced retail opts for the options mentioned above because they offer automated deposit insurance. While DeFi insurance exists, it is far from automated and even further from convenience. DeFiner is redefining the DeFi experience by offering convenience and security, two factors that are otherwise laughed at in the DeFi's dog-eat-dog narrative.
All accounts are given automated deposit insurance through our partnership with Nexus Mutual. All the decentralization, none of the inconvenience.