DeltaPrime Launches A New Native Undercollateralized Borrowing Protocol on Avalanche

4 min readJan 10, 2023

DeltaPrime launched today on Avalanche, giving traders increased borrowing flexibility by allowing traders to borrow more than the present value of their deposited collateral. This new way of decentralized borrowing and portfolio management is finally here as “The Prime Account”. With over 18 months of development, this innovative DeFi primitive unlocks increased efficiency of assets, new DeFi strategies for traders, and simplified portfolio management throughout the Avalanche ecosystem.

What is the Prime Account?

The Prime Account is similar to a decentralized, on-chain prime brokerage. Prime brokerages are typically reserved for only elite hedge funds. DeltaPrime’s Prime Account is open to all with just a Web3 wallet, like Core.

At its core, the Prime Account allows traders to easily borrow AVAX and USDC, at a value higher than their deposited collateral. Most borrowing dApps today are unable to provide traders with this experience. But with DeltaPrime powered by Avalanche, this is possible, at scale.

Because the Prime Account holds all the funds, borrowed capital can safely and seamlessly be liquidated on losing trades.

Increasing productivity of assets

DeltaPrime’s mission is to “unlock trapped liquidity”. Overcollateralized borrowing systems have fulfilled a crucial role in bringing early success to the broader DeFi ecosystem. However, one major hurdle of this design is lower capital efficiency. Its security relies on traders depositing more value than they borrow, even when this liquidity is not being used.

The Prime Account’s security relies on its ability to simultaneously liquidate borrowed and deposited funds. This allows the Account to give value back to the chain, through the borrower’s collateral. Borrowing/depositing spreads can be reduced, leading to higher capital efficiency in the borrowing market. With most farms ending up in Liquidity Pools from DEXs, DeltaPrime expects their innovation to lead to deepened pool liquidity on integrated DEXs and lower slippage across those DEXs, leading to a more efficient ecosystem overall.

Opening up new DeFi strategies

The Prime Account allows traders to swap, farm, and provide liquidity with whitelisted protocols in a cross-margin fashion. Cross-margin portfolios share account health across all positions, whether singular tokens, LP tokens or farmed positions.

Undercollateralized borrowing allows traders to easily hedge positions by opening one position intended to offset potential losses or gains that may be incurred by another position. This allows for the creation of strategies not seen before on Avalanche, or the amplification of strategies that do already exist.

Simplifying the DeFi portfolio managing experience

In addition to DeltaPrime, there are many innovative DeFi applications in the Avalanche ecosystem. A lot of DeFi traders, especially veterans, use many different dApps for their DeFi strategies. While this diversified approach provides traders with many various opportunities, it can also make portfolio management much more cumbersome.

The Prime Account aggregates all whitelisted protocols within its ecosystem. It tracks and shows the value of all (potential) positions, whether traders provide liquidity to Pangolin or Yield Yak, Vector, or Trader Joe. The Account allows users to compare opportunities within one, streamlined UI, and make informed decisions about their positions. DeltaPrime aims to make this UI/UX as simple as possible

Start Your Borrowing Journey:

Step 1: Navigate to: https://app.deltaprime.io/#/prime-account

Step 2: Find a token you want to deposit as collateral

Step 3: Deposit the token as collateral by pressing the + button

Step 4: Click “Deposit Collateral”

Step 5: Input your desired amount and click “add funds”

Step 6: Approve the signature, and two transactions popping up in your wallet

Congratulations, your Prime Account is all set up! Click here to learn more about the different actions you can perform in the account.

About DeltaPrime

DeltaPrime is your prime broker on a mission to unlock the full potential of DeFi. We do this by providing secure undercollateralized loans, and redistributing assets with a focus on maximum capital efficiency. Being built on the strong foundation of the Avalanche network, our investors are assured of fast and reliable transactions for their most important investments.

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About Avalanche

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