Introducing Whale Match — MYSO’s Convertible Loan Marketplace
Whale Match enables users to earn organic yields by supporting projects/DAOs with convertible debt financing
MYSO is thrilled to announce the launch of Whale Match — an innovative convertible debt marketplace. This new platform will enable users to support projects by lending stablecoins through convertible debt, unlocking new organic real yield opportunities for regular DeFi users and providing an avenue for projects/DAOs to raise capital.
Whale Match deposits are now live on Arbitrum —https://app.myso.finance/whale/deposit
What is Whale Match?
Convertible debt is a widely used loan structure in TradFi, adopted by notable companies such as Twitter and Coinbase. MYSO believes this model presents a largely untapped opportunity in DeFi, as many projects have substantial capital locked in treasury tokens that are difficult to utilize due to the lack of reliable on-chain price feeds. In addition, a one-size-fits-all approach doesn’t work well for non-standard underlyings, where every borrower has individual needs when it comes to tenor, LTV and loan structuring. MYSO’s expertise in custom, liquidation-free structured loans unlocks the borrowing potential of these treasury tokens, creating significant opportunities and aligning with MYSO’s vision of creating a Million Yield Structuring Opportunities.
Whale Match is MYSO’s newest product line that enables projects and DAOs to borrow funds from a pool of lenders using treasury tokens as collateral.
Projects and DAOs will utilize Whale Match to unlock the borrowing power of their idle treasury tokens by using them as collateral to borrow stablecoins from retail lenders. Whale Match’s unique convertible debt structure will allow loans to be structured with a conversion feature, meaning DAOs can offer lenders upside participation in the collateral token. This embedded conversion option means that lenders can not only earn yield on their deposits but also capitalize and participate in the upside of the underlying collateral.
This creates novel organic on-chain yield opportunities for lenders and unique refinancing options for projects and DAOs, tapping into the borrowing power of otherwise idle treasury tokens.
The other powerful feature of Whale Match is the customizability of each loan — loan structures can be customized with fully individualized terms, including choosing the tenor, LTV, and conversion rates.
To mitigate any collateral price risk associated with volatile altcoin deals, borrowers can provide high over-collateralization degrees and attractive conversion ratios, both of which are fully customizable and can be adjusted for each loan case individually!
Who can participate in Whale Match?
- Borrowers (DAOs, protocols, etc.) — Utilize idle treasury tokens to acquire stable funding for product development, runway, etc.
- Lenders (Retail users, community members, etc.) — Earn organic, sustainable yields on lending stables and participate in upside from potential collateral price appreciation
There is another role available for users to earn via Whale Match — these users will be known as Arrangers!
To facilitate loans between projects and lender communities, Whale Match allows for Arrangers to help matchmake and earn from successful deals.
Arrangers can make loan proposals, pitch them to DAOs and lender communities, and structure loans that get matched. Upon a successful match, they earn a commission which they can define themselves. For example, a 1% success fee on a $1 million loan settlement would yield a $10,000 commission for the arranger!
If this sounds like an opportunity for you, applications for our first cohort of arrangers are now open! Reach out to the team on Discord and arrange your first Whale Match deal!
Whale Match deal example
For example, assume a DAO with 1,000,000 XYZ treasury tokens currently worth $10,000,000 is looking to borrow $1,000,000 in USDC to strengthen secondary market liquidity for its own token for the next nine months.
The DAO can structure a convertible loan with a target loan amount of $1,000,000 and an LTV of 10%, giving lenders the right — but not the obligation — to receive 100,000 XYZ tokens instead of receiving the loan amount back in USDC.
At the inception of the loan, these tokens would be worth $1,000,000, but if the token price were to increase, they would be worth more than the originally loaned amount. This embedded optionality, or conversion feature, allows lenders to participate in the upside of the collateral token!
Whale Match is live — deposits are open!
We’re pleased to share that Whale Match is now live and deposits are open on Arbitrum! Users can now start depositing into USDC lender pools, with subscriptions to new financing deals going live soon!
Deposits live here — https://app.myso.finance/whale/deposit
The launch of Whale Match is yet another step MYSO is taking towards creating an ecosystem of organic on-chain yield opportunities through structured product primitives. We’re extremely excited for borrowers, lenders, and arrangers to come together to collectively fund novel debt venture deals!
