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Infinity is a Lending and Borrowing protocol offering unparalleled capital efficiency by combining a high-fidelity, centralized order book and risk engine, with a non-custodial, on-chain batched trade settlement experience. A low-latency, high-throughput user experience is available through both the Website, and API, with the standard smart contract interface available directly on Ethereum.
Across all interfaces, users are presented with a unified Yield Curve and seamless trading experience across both Floating and Fixed Rates with the ability to move both capital and risk easily from one market to the next.
Lending and Borrowing is based on a fully-funded 'cash' experience. Lending or borrowing requires that you provide or receive the full principle upfront upon entering into the trade. Infinity it is not a derivatives protocol, however, one may sequentially execute multiple transactions to synthetically replicate the payoffs of Interest Rate Swaps and Cross Currency Swaps.
Infinity addresses the issues plaguing the lending and borrowing space:
Floating Rates: Lending protocols are typically based on the concept of Utilisation, which result in wide spreads for users. The inherent deadweight loss prevents users from executing at good prices (i.e. getting close to the 'mid' price) and as such, ends up harming users vs their TradFi counterparts who engage in markets based on order books, OTC, or RFQ systems.
This is not to say that lending protocols seek to harm users, but rather, that basic protocols face considerable computational constraints and there is (as yet) no simple way to develop floating-rate protocols without such compromises to capital efficiency.
Fixed Rates: Similarly, to create Fixed Rate positions, significant compromises must be made in order for them to emulate their TradFi counterparts -- for example, stripping interest payments from principal payments, AMMs, or other approaches.... Lending protocols furthermore offer Floating Rates, or Fixed Rates as isolated, non-interoperable markets. To build a proper yield curve, there has to be a seamless movement of both capital and risk between both short-dated and long-dated positions. Given computational constraints, this is not (yet) fully possible on-chain.
Interoperability: While ostensibly, one could initiate positions between Floating Rate protocols and Fixed Rate protocols, these protocols are not interoperable at the collateral and risk management level, as much as they may be at the ERC20 token standard level. As Lending Protocols weren't fully composable or interoperable with one another, this creates disparate markets and pools of capital across DeFi going against the broader goals of efficiency and interoperable markets.
Finally, Infinity can accept a broad, and diverse set of collateral from:
- Basic tokens like ETH, USDT, USDC, DAI, WBTC, to
- Yield-Bearing tokens like Aave's aTokens, and Compound cTokens, to
- Liquidity Provider tokens like Curve's LP Tokens, and Uniswap V3's LP Tokens, to
- Liquid Staking tokens like Lido's stETH, and Rocket Pool's rETH, to
- Real World Assets, like OpenEden, MatrixDock or Ondo Finance's tokenized funds
Bringing a powerful TradFi-like experience to both Digital Assets, and Tokenized RWAs, Infinity enables the crypto Fixed-Income and Credit markets to now flourish and compete head-to-head with their TradFi counterparts. Individuals, Corporates, DAOs, and more can seek financing in either Fiat or Digital Assets. Traditional Bond Issuers can now equally choose to raise capital benchmarked to either Fiat or Stablecoin yield curves. The Unified Financial Market is here.