Changing DeFi Loans through Automation
Unlocking the Power of DeFi, One Loan at a Time
Imagine a world where your loans automatically adjust, responding intelligently to market shifts.
Welcome to Altitude, where DeFi loans meet automated capital efficiency.
Smart Borrowing, Simplified
Altitude is a novel solution designed to optimize DeFi loans. This is done by maintaining the safety of over-collateralization while enhancing capital efficiency. Traditional borrowers often resort to lower Loan-to-Value ratios (LTVs). This helps to avoid liquidation resulting from the price volatility of their collateral. However, this general approach leaves substantial idle capital on the sidelines. Altitude steps in with its innovative approach, automatically managing the Loan-to-Value (LTV) ratio of the users’ loans in real-time. This means the users’ dormant capital is put to work into a selection of yield opportunities, generating returns without materially affecting the liquidation risk. Whilst at the same time the generated rewards from those yield strategies are automatically used to repay the loan.
How Altitude Works:
Users can deploy their collateral into an Altitude vault and borrow a stablecoin against it.
[Altitude is currently in closed beta. The public launch and details about vaults & asset pairs will be announced soon].
Altitudes’ dashboard shows borrowers the ‘health’-factor of their loan, based on their LTV. Similar to any general lending-borrowing mechanism in DeFi, to minimize the liquidation risk, one would typically borrow at a low percentage of their collateral. This results in a lower LTV indicated by a higher ‘health’-factor and concludes in providing more dormant capital to leverage Altitudes’ active automation mechanisms. Altitude takes the dormant capital of a users’ loan and puts it to work, automatically generating yield through pre-defined strategies. This generated value is utilized to repay the users’ loans, providing a dynamic and flexible borrowing experience. While this is happening through automation, the user still is fully in control of their assets.
Automated Efficiency, Tailored Security:
With a predetermined LTV and transparent yield strategies, Altitude automates secure rebalancing. For instance, if a user deposits $100k worth of collateral and borrows $20k, Altitude evaluates the LTV in real time and borrows available dormant capital, in this example an additional $45k would be available to optimize the ratio. This borrowed amount is strategically deployed to generate yield. If the collateral’s value fluctuates, Altitude seamlessly adjusts it by rebalancing between the debt pools and yield sources. Ensuring the LTV remains within a safe zone.
The Altitude Advantage:
- Auto repaying loans: By actively utilizing dormant capital, Altitude is able to generate yield, which is used to reduce the size of the loans.
- Always borrowing at the lowest rates: Altitude actively looks for the lowest available interest rate in the market and refinances the debt.
- Real time optimisation: Altitude continuously manages the LTV ratios to keep the position in an optimal state.
- Auto compounding: Yield and reward tokens are crystalized on a regular basis and compounded for maximum yield.
User-Centric Experience:
Altitude boasts an intuitive user interface. Bridging the gap between the complexity of DeFi protocols and user-friendly interactions reminiscent of traditional web platforms. Interacting exclusively with trusted lending and borrowing platforms like AAVE and Compound, Altitude ensures a seamless user experience.
Unlocking Financial Potential
Whether you’re a seasoned DeFi enthusiast or a newcomer exploring the crypto realm, Altitude welcomes you to a future where your assets work smarter for you. Experience the next chapter in decentralized finance with Altitude — where loans are not just borrowed, but optimized.
Welcome to a different kind of DeFi experience. Welcome to Altitude.
