Chainfeeds Summary:
A former Messari researcher analyzed over 160 on-chain lending projects, constructing an analytical framework covering four major segments and 19 subcategories, and then analyzed and interpreted the projects starting from the asset-layer lending issuance as the foundation.
Article source:
https://x.com/Solofunk/status/2048827810295218642
Article Author:
Patryk
Opinion:
Patryk: Credit issuance is the core asset layer, where credit is generated and tokenized. Assets from this layer include institutional credit funds from Apollo and Fasanara, off-chain credit tokenization from Figure, and a range of on-chain origin models, including overcollateralized lending, peer-to-peer lending, InfraFi, and PayFi. Asset management companies like Apollo (managing over $938.4 billion in assets) are tokenizing existing private credit instruments. Tokens like $ACRED and $ACRDX act as "feedback funds," channeling on-chain investments to special purpose vehicles (SPVs) that hold shares of the underlying funds. This model is used by institutions to extend product offerings to crypto-native capital. Access to these products remains limited to KYC-verified accredited investors and typically has a high minimum investment threshold. However, when these assets are integrated as collateral in money market protocols such as Morpho and Kamino, the broader DeFi ecosystem will benefit from their adoption through higher stablecoin lending rates. Off-chain credit tokenization uses the blockchain as a transparent, 24/7 recording and reconciliation layer to record loans generated off-chain. Assets in this category are typically "representative assets" that cannot be transferred between wallets. Figure is a prime example of this category, generating and tokenizing Home Equity Credit Lines (HELOCs) by modernizing traditional infrastructure. By using its Provenance blockchain as the ledger for generating data and loan repayments, Figure eliminates intermediaries and reduces financing cycles that could have taken months to days, while saving approximately 120 basis points per loan. Off-chain credit tokenization can also broaden investment scope. On-chain tradable capital is invested in customized off-chain single-borrower transactions. Entities like RockawayX, FalconX, Valos, and Mu Digital raise funds through on-chain vaults and then deploy them into off-chain credit strategies. Corresponding tokens typically function as distributed assets, enabling token holders to benefit from the composability of DeFi, similar to certain institutional credit funds. Peer-to-peer lending is included in the credit issuance category in our market map, while traditional peer-to-peer lending is excluded. This is because protocols like Wildcat differ from the pool model, allowing individuals to lend or be matched with a single counterparty. In Wildcat's case, users lend stablecoins as uncollateralized lines of credit offered to a single institutional borrower (such as Windemute). Jupiter's new Offerbook product provides a peer-to-peer marketplace that allows customization of collateral types, interest rates, loan sizes, and terms. Furthermore, protocols like Centuari offer a Central Limit Order Book (CLOB) for fixed-rate loans, ultimately matching counterparties through the order book. Peer-to-peer lending is a small but growing segment of on-chain credit, offering customized credit assessments and yield opportunities.
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