Mainframe – a decentralized communication platform – is pivoting to a new fixed-rate lending protocol through the advent of tokenized debt markets with its acquisition of Sablier.
👨💻Since early July, @PaulRBerg has been working with us behind the scenes implementing the first version of our fixed-rate lending protocol. Check out our full announcement here: https://t.co/R7xCc64bJh
— Mainframe (@Mainframe_HQ) July 28, 2020
Sablier – a fan-favorite money streaming platform for real-time payments – is bringing it’s expertise to Mainframe as the project creates a new form of DeFi lending using Yield Protocol yTokens and influences from Compound and Maker.
With the acquisition, Sablier co-founder Paul Berg will be working full time on Mainframe as they “explore token streams as an innovative way to lock-up and release tokens from the circulating supply as part of a broader token economic system.” More on the acquisition can be found here.
Here’s what you need to know about Mainframe’s pivot.
With over-collateralization becoming such a common factor of DeFi lending, Mainframe looks to change that notion through the advent of no-coupon tokenized bonds. The protocol allows users to deposit collateral (less than 150%) to mint tokenized debt obligations. These obligations are purchased by lenders at a discount and able to be redeemed at face value at maturity. Liquidity providers – called Guarantors – ensure the system stays sufficiently capitalized by purchasing defaulted collateral at a discount and earning protocol fees.
All in all, Mainframe’s sleek design skills paired with a new form of lending are set to make a big splash in the wider DeFi landscape. Plus, with Paul leading the development team, Mainframe is a project worth keeping a close eye on in the coming months.
MFT Liquidity Mining
As if that weren’t exciting enough, Mainframe is also looking to give their native token – MFT – second life through the ongoing development of a liquidity mining program. As illustrated over a suite of blog posts, Mainframe is allocating 1M MFT each week across the top two liquidity pools on Uniswap V2 and Balancer.
— Mainframe (@Mainframe_HQ) June 30, 2020
While the program is being handled manually using onchain snapshots, MFT aidrops to LP’s are yet another signal that Mainframe is set to make a big stance at revitalizing their ecosystem. The liquidity mining program is now up to 45 unique LP’s, over double the amount of LPs from when I first became aware of the program a few weeks back.
While the news of a new DeFi lending protocol is one which we’re always keen to cover, it’s interesting to consider if projects are now looking to do anything and everything they can to take advantage fo the ongoing DeFi summer.
With Paul joining the team, I have full confidence in Mainframe offering a highly competitive lending product set to rival the likes of Teller and other new projects popping up across the board.
Still, we’ll need to keep a close eye on those which are adding true value to the space (like Mainframe) relative to others who are slapping a DeFi tag on their website and acting like they’re changing the world.
In the meantime, we’ll be sure to cover the gems right here on DeFi Rate.
Cooper is the Editor of DeFi Rate and an active contributor to leading DeFi media outlets like The Defiant, DeFi Pulse, and Bankless. He works with early-stage teams through Fire Eyes DAO to incubate governance models and grassroots community development. He is an ambassador to Set Protocol and an author of a weekly publication called Token Tuesdays. To stay up with Cooper, follow him on Twitter.