🏧Introduction
Resources and guides to help users navigate the MetaStreet Protocol
Last updated
Resources and guides to help users navigate the MetaStreet Protocol
Last updated
Structuring is enabled through MetaStreet's v2: The Automatic Tranche Maker ("ATM"), a permissionless lending protocol that automatically organizes capital in a pool based on depositors' risk and return (rate) profiles.
Tradable Assets are enabled through our Liquid Credit Token ("LCT"), a liquid, composable ERC-20 representing each lender's position within a pool.
The main goals of The ATM are to improve on three shortcomings of existing lending protocols:
Oracleless: Remove the dependency on a centralized price oracle for loan to value limits
Dynamic Interest Rate Model: Replace a fixed, governance-driven interest rate model with a dynamic, deposit driven one
Permissionless: Allow users to instantiate a lending pool for any collection permissionlessly
LCTs were created to help scale digital asset market growth through several high yield opportunities. The primary benefits are:
Enable long duration loans: lenders, who historically did not want their capital to be illiquid, now have access to secondary liquidity at any point during the loan term.
Support/stabilize floor prices: by deepening lending markets (i.e. more deposits from the DeFi community) and by encouraging higher LTV loans (more yield) which will reduce sell pressure by holders.
Maximize yield: LCTs are fully composable tokens, which can be used within all aspects of DeFi, including trading, supplying LPs, leveraging with Vaults, etc.