Fasanara Digital: High-Yield, Market Adaptive Credit Vault
A variable-rate pool, channeling funds into delta-neutral yield strategies
Expanding Credit Yield offering
Idle announces the first Credit Vault focused on private credit, stepping in to meet growing demand in this expanding market.
Private credit’s rising demand presents a substantial growth opportunity. A recent McKinsey report highlights private credit’s increased role, with market size nearing $2 trillion by 2023, roughly ten times larger than in 2009.
Private credit has been one of the fastest-growing segments of the financial system over the past 15 years. The asset class, as commonly measured, totaled nearly $2 trillion by the end of 2023, roughly ten times larger than it did in 2009.
Idle’s Credit Vaults help meet this demand by bringing private credit on-chain, unlocking scalability, transparency, and efficiency. The new primitive offers advantages such as reduced settlement costs and greater automation, addressing traditional settlement inefficiencies.
Fasanara Digital, the digital asset arm of the hedge fund Fasanara Capital, is the first Credit Vault partner announced.
“We are excited about the launch of our Credit Vault, which provides bespoke sources of financing and allows us to offer uncorrelated yield generation opportunities, based on our CeFi trading strategies, to DeFi users, and tailor the yield to be both appealing and protected to the downside”, said Fasanara Digital Portfolio Manager, Alessandro Balata
The Fasanara Digital Vault operates as an evergreen, variable-rate loan, channeling funds into the London-based fund’s delta-neutral yield strategies. These include market making, cross-chain and cross-market arbitrage, and funding rate optimization. Interest is distributed weekly to liquidity providers, with the option for weekly redemptions.
To enhance performance tracking and transparency for liquidity providers, the vault’s variable loan rate is pegged to the BTC open interest-weighted funding rate, sourced through partner Glassnode, with a 1.5x performance multiplier, a guaranteed daily minimum return of 5% APR, and a maximum yield cap of 30% APR.
The permissioned vault uses Keyring’s privacy-preserving KYC to seamlessly align institutional compliance requirements with permissionless DeFi infrastructure, enabling both to coexist efficiently.
New TradFi and DeFi synergies
The launch of Credit Vaults represents a leap forward for DeFi, as Idle aims to democratize access to credit facilities and expand the yield offering on-chain. By providing transparency and adaptability to both borrowers and lenders, Idle is positioned to drive future growth in on-chain private credit.
We are poised to release the Fasanara Yield vault to bring seamless, cost-efficient credit access to DeFi,” said Matteo Pandolfi, CEO of Idle Labs. “Our focus is to keep building technology that reduces transaction costs and empowers both borrowers and credit markets through on-chain standardization. This advancement allows borrowers to save thousands of dollars per loan and brings us closer to building a highly liquid marketplace for credit, maximizing value and accessibility for borrowers, lenders, and underwriters.
Ready to enter a new phase of credit yield on-chain? Don’t miss out on the opportunity to be the first to deposit into the newest Credit Vault of Fasanara Digital and unlock double-digit returns on stablecoin lending.
Visit the Credit app to start → credit.idle.finance
About Idle
Idle is a DAO that empowers the DeFi market with robust yield automation and hedging instruments, facilitating its expansion and establishing the foundation for a sustainable credit financial ecosystem via a more efficient and risk-adjusted capital allocation.
Idle Institutional is the new credit infrastructure arm focusing on onboarding traditional finance institutions in lending activities on-chain.
Website | X
About Fasanara Digital
Fasanara Digital, part of Fasanara Capital, is a quantitative investment fund applying a scientific approach to investing in digital assets with the aim of achieving exceptional risk-adjusted returns for investors.
Website | X
