Rate Stabilization for MakerDAO

Hello,

We at akiva.capital are excited to be part of the Centrifuge community and look forward to helping broker dealers secure stable interest rates for the loans of their Asset Originator / Pool Operator clients, when using MakerDAO.

Who we are

Akiva Capital provides smart contracts and a frontend for the execution of interest rate derivatives to use MakerDAO with a stable interest rate. Our stack is one layer above MakerDAO.

What we offer

We offer a new kind of variable-to-fixed swap contract for collateralized lending on-chain.

In the Centrifuge/Tinlake model, Pool Operators are issuing TIN/DROP tokens backed by NFT tokens representing assets. These TIN/DROP are used subsequently as collateral in MakerDAO to borrow and pay advances to Asset Originators.

However, the Stability Fee poses a risk of sudden increase and subsequently a rise in costs of capital. Similarly, DAI investors could be concerned about the potential of DSR decrease. Hence, in many situations, Borrowers and Lenders might want to agree on a fixed rate in line with their mutual expectations about the future interest rates.

Our product - Continuous Forward Rate Agreements (“CFRA”) - is purposed to provide an alternative, fixed-rate capital sourcing channel complementing the existing variable rate collateralized lending mechanisms of Maker.

Who can use it

Variable interest rates are inherent in Maker as this is the main tool to stabilize the price of DAI. Our product complements the Maker offering and in particular can offer Pool Operators source of fixed rate capital. It can also be used in any application for collateralized bridging of lenders and borrowers. For example, it could bridge in-house brokerage accounts having uninvested cash to earn an interest and clients who want leverage in their positions by means of a margin buying.

We invite you to review our website

https://www.akiva.capital/copy-of-press

Tell us what you think about our offering. Please reach out to us for a draft of our whitepaper.

akiva@akiva.capital

vitaly@akiva.capital

3 Likes

Hi akiva team and vitaly,
Welcome here! That sounds really interesting. Keen to learn more and looking forward to compose great DeFi products with you -Martin