Unique Real Yield Opportunity in DeFi Backed by Protocol-Level Resources
1. Earn Organic Fixed Lending Yield
Copra loans offer attractive real yields on crypto assets (ETH, BTC, Stablecoins). These are fixed yields programmatically promised by the protocol instead of floating yields that are based on the future performance of select pools or vault strategies.
2. Protocol-Level Lending Exposure
Unlike lending directly at the pool-level where exposure is siloed to a specific pool's uncertain performance, lending to protocols through Copra loans offers 'institutional,' protocol-level exposure. On top of the principal of the loan being secured by the liquidity warehouse, the loan is further buffered by borrower's protocol resources including 1) a deposit that is posted by the protocol treasury and 2) a revenue escrow mechanism that redirects protocol income from the treasury to the warehouse contract.
3. Fully Secured On-Chain
Loans are disbursed to and secured by the liquidity warehouse, which 1) takes full custody of the loan principal by enforcing boundaries of liquidity utilization to only pre-determined whitelisted pools on the protocol, and 2) holds yields accrued from pools where liquidity is deployed. It's possible to only whitelist delta-neutral pools or properly delta-hedged pools on the liquidity warehouse, thereby making the whole lending strategy delta-neutral. In cases where the loan is exposed to some impermanent loss risks at the pool level, there will still be sufficient buffers to guarantee full loan repayment.
4. Real-Time Debt Covenants
Our automated debt covenant trigger system helps mitigate risks including limiting any drawdown below a certain threshold, should it ever happen.