 | Carapace FinanceAccelerating the world’s transition to decentralized finance by re-imagining how we manage credit. Carapace is a protocol to connect buyers and sellers of protection against default risk for under-collateralized DeFi loans. Funding Round: $2.5 Million IMPORTANT: By investing in this business you agree to ourDisclaimer. All information including our rating, is provided merely for informational purposes. CryptoTotem does not provide investment advice. |
Overview
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OpenWhat is Carapace Finance
Carapace permitting lenders on DeFi lending markets to purchase protection against default in order to hedge their default risk. Carapace will allow sellers - investors seeking yield who believe that the underlying loans are safe - to provide such default protection. Pricing of risk fluctuates with supply and demand in a system where protection sellers provide capital for risk protection in exchange for a premium. If a default event occurs, a payout is made to protection buyers
We create a market where traders can swap the default risk. Protection buyers pay a premium to get the right to claim protection when an underlying loan defaults. Protection sellers provide capital for protection in exchange for a premium. When a default event occurs, a payout is made to protection buyers.
Carapace protocol is a non-custodial automated market maker implemented on a blockchain. Our automated market maker (AMM) pools liquidity and makes it available to swap traders according to an algorithm such as our premium pricing formula that fluctuates with supply and demand and the exchange rate formula that keeps increasing with the interest accrual.
DetailsRaised: 2,500,000 USD |
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