Wildcat, created by Laurence Day, Dillon Kellar, and Evgeny Gaevoy, has launched its V2 version on Ethereum. The protocol addresses the issue of noncollateralized crypto lending.
Introduction of Wildcat's New Version
Wildcat, a decentralized lending protocol, was launched by Laurence Day with Dillon Kellar of Indexed Finance and Evgeny Gaevoy from Wintermute as a 'silent' partner. The second version of the project was deployed on the Ethereum mainnet. According to the announcement, the deployment cost approximately 0.06969 ETH (~$180).
Features and Capabilities of the Protocol
Wildcat provides a marketplace for ratified borrowers to establish fixed-rate onchain credit facilities. The protocol allows borrowers to set their loan terms without disclosing their financial information. According to Day, Wildcat is geared towards institutional investors such as funds or market makers. Borrowers can set parameters like reserve requirements, maximum loan capacities, interest rates and more.
Risks and Future Prospects
The main goal of Wildcat is to create onchain credit scoring systems. Despite the risks of noncollateralized lending, Day emphasizes the importance of transparency in the crypto market to prevent collapses like Terra's in 2022. The founders believe the protocol will help track the borrowing histories of users and introduce measures to guard against potential bankruptcies.
Wildcat V2 offers a new approach to noncollateralized crypto lending, focusing on transparency and institutional participation. Its success will depend on users' ability to assess credit risks.
