DeFi lending service Altitude raises $6.1 million to improve capital efficiency
Posted: January 9, 2024 12:17 PM Updated: January 9, 2024 12:17 PM
Correction and fact check date: January 9, 2024, 12:17 p.m.
briefly
Altitude, a DeFi lending service, has raised $6.1 million in funding. Improve capital efficiency by automating dormant funds in overcollateralized loans and exploring yield opportunities.
Altitude, a decentralized finance (DeFi) lending service, announced the close of its seed round led by Tioga Capital, New Form Capital, Flow Ventures, UDHC, GSR, and Owl Ventures, with participation from high-profile angel investors such as AAVE’s Marc Zeller. The project previously secured funding in a pre-seed round from Web3 Builders Group, bringing its total funding to $6.1 million.
Altitude improves capital efficiency by automating dormant funds in overcollateralized loans to explore additional yield opportunities. The protocol automates collateralized debt management by adjusting loan-to-value (LTV) ratios in real time, maximizing capital efficiency while ensuring a secure liquidation risk profile.
“Cryptocurrency lending is already a cornerstone of the DeFi sector, but its potential is still untapped. Altitude’s new approach will fuel the next wave of growth by providing peace of mind to DeFi investors while generating better returns.”
Michiel Lescauwaet, Managing Director of Tioga Capital, commented on this investment:
As the value of collateral increases and Altitude identifies excess collateral in the loan, the protocol allocates it to various platforms for income generation. If collateral is required to secure the loan, the protocol automatically rebalances to maintain the target LTV.
Additionally, Altitude partners with leading DeFi lending protocols and yield aggregators to continuously refinance loans at the best interest rates, actively manage dormant capital for yield, and repurpose the yield generated to reduce user debt, thereby leveraging user capital. Optimize. pay back.
“Even before it was called DeFi, I always had to manage my lending positions manually, which was not only time-consuming but also more risky. “We’re building Altitude to automate the things people do every day to keep their capital working as hard as possible.”
Tobias van Amstel, co-founder of Altitude, said:
Highly innovative approach to lending
Blockchain technology has revolutionized lending mechanisms, allowing users to borrow funds without credit history, KYC verification, or registration in the DeFi environment.
This shift has made lending a key use case for DeFi, accounting for more than one-third of total value locked (TVL) in DeFi applications by the end of 2023. Despite this growth, DeFi lending faces challenges such as overcollateralization.
Without credit history and registration, borrowers are often forced to secure more cryptocurrency than the value of the loan as collateral. LTV ratios, which measure how much you can borrow relative to your collateral, are often set at low levels to mitigate lenders’ risk from changes in collateral prices. While this protects borrowers, low LTV results in significant unused capital, leading to high capital inefficiencies in the DeFi lending and borrowing market.
To solve these problems, Altitude automates secured debt management by dynamically adjusting LTV ratios. This approach improves capital efficiency while maintaining a safe liquidation risk profile.
Altitude recently completed on-chain testing and will enter a private beta phase with access to whitelisted addresses before proceeding with full launch. As adoption grows, the company aims to expand its presence to other EVM-compatible Layer 1 and Layer 2 networks and build integrations with leading lending protocols and revenue sources.
Altitude’s new investment will drive innovative DeFi lending services to automate collateralized debt management and maximize capital efficiency. The platform’s new approach is gaining traction as it fuels the next phase of DeFi’s growth and aligns with the evolving digital landscape.
disclaimer
In accordance with the Trust Project Guidelines, the information provided on these pages is not intended and should not be construed as legal, tax, investment, financial or any other form of advice. It is important to invest only what you can afford to lose and, when in doubt, seek independent financial advice. For more information, please refer to the Terms of Use and any help and support pages provided by the publisher or advertiser. Although MetaversePost is committed to accurate and unbiased reporting, market conditions may change without notice.
About the author
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
more articles
alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
more articles