Bank loans to shadow banks have surged to $1.2T (~20x) in an effort to juice higher yields on deposits. 🎰 Capital will inevitably flow to speculation-backed credit products.

Messi is a DeFi legend, and if you don’t know him you’ve certainly been his counterparty once or twice. We’re extremely proud to have him in our corner to scale up unsecured credit on Ethereum.

Really glad to see this evolution from true fi. As I recall it's the most OG solution for uncollateralised loans and institutional borrowing/lending. Following the path of @WildcatFi and @3janexyz, 2025 will be interesting in this sector.

How can you borrow money in DeFi without locking up capital? Right now, it's simply impossible. Most money markets rely on collateral and liquidations as mechanisms of trust between lenders and borrowers. Unfortunately, that comes at the cost of efficiency and flexibility. But soon, things will change. @3janexyz has the ambition to offer unsecured loans. Let’s try to break it down as simply as possible. To paraphrase @PaulFrambot: "Trust is the only true requirement for lending." And that’s exactly where 3Jane is trying to bring something new. The protocol will determine algorithmically who can borrow, how much, and at what price. In other words, who it can trust and to what extent. To do that, 3Jane feeds its algorithm with two main sets of data about the borrower: • Creditworthiness, both offchain and onchain, using scores from credit analytics companies like @creditkarma and @cred_protocol. • Assets, meaning what and how much they own in their wallet, on CEXs, and in their bank account. But that’s not enough. Don’t forget we’re talking about real money. Even if the algorithm manages to filter profiles and assign trust properly, how can you be sure borrowers will actually pay back? To address that, 3Jane relies on real-world legal systems. When a borrower opens a credit line, they sign a contract that allows for legal recourse in the real world in case of default. I think you get how the whole thing works. Collateral is replaced by a combination of on- and off-chain data analysis, asset verification, and real-world legal enforcement. -------------------- Borrowers can get a credit line based on a wider range of assets without locking up anything. Plus, even though I didn’t go into detail, the process doesn’t require heavy KYC. You just need to connect your CreditKarma and bank account (securely). It takes like two minutes. Lenders, on their side, can earn higher yields due to the increased risk compared to traditional liquidation-based systems. But here’s the real question: do you trust it enough to supply USDC?

Good morning, Internet Capital Markets v2

1/ We're excited to announce our integration with @Plaid to allow instant bank connections. At launch, cryptonative borrowers will be able to boost their credit lines by connecting bank and CEX accounts across +12,000 U.S. financial institutions.

It's morning again on Ethereum. Join us Wednesday 3pm EST to discuss broadband credit expansion.

1/Introducing the 3Jane Whitepaper: The foundation for the first capital-efficient and scalable money market on Ethereum enabling users to borrow at 0% collateral. Borrow against the future.