As 2023 advances, M11 Credit would like to keep you updated on progress made and share insights around our activities in the lending & borrowing space.
M11 Credit is delighted to announce that as of Wednesday November 8th we have successfully secured the full repayment of the Auros loans. This marks the successful conclusion of the restructuring process that started in the weeks after the FTX implosion, thereby ensuring the return of all funds - including interest - to Liquidity Providers.
We express our deep appreciation for the patience of Liquidity Providers in the M11 Credit Permissioned USDC pool as well as the M11 Credit wETH pool on Maple Finance, whilst we worked closely with Auros as they restructured.
Read more in our Medium article.
We are noticing a gradual resurgence of interest in digital asset lending from our lender base. Nonetheless, a distinct gap persists between the terms lenders are willing to offer across various risk/reward profiles and conditions borrowers find feasible in the prevailing negative market environment, characterised by low volumes and volatility.
In terms of lender rate expectation, our current insights, contingent upon the specifics of deal structures and involved parties, are as follows:
- USDC(T): 13%+ with collateralization levels ranging from 0% to 25%
- BTC: 5%+ with collateralization levels between 0% and 25%
- ETH: Staking rate + 2% spread, with collateralization levels from 0% to 25%
We are witnessing rates demanded from top-tier, market-neutral borrowers that continue to hover in the mid-high single digits, particularly even with low collateralization levels. It worth noting that these transactions typically occur within Prime Brokerage styled frameworks, but this is expected to shift outside of this ecosystem when demand continues to increase further.
Since 2020, Ryan has actively participated in the blockchain industry, gaining recognition for his development skills at ETHGlobal Waterloo. With a strong background in credit risk analysis, portfolio management, as well as quantitative research from his time at Stablecorp, Ryan is now integral to establishing M11 Credit's technical infrastructure.
As part of enhancing M11 Credit’s on-chain monitoring and tracking systems, Ryan’s expertise in this particular field will prove to be instrumental in the development of our lending operations.