Mainframe, a blockchain company that launched in 2018 as a decentralized communication platform, announced its relaunch as Mainframe Lending Protocol, following its acquisition of Sablier, a protocol for real-time finance on the Ethereum blockchain. Mainframe plans to integrate Sablier’s money streaming technology into a fixed-rate lending protocol and create tokenized debt markets to further the evolution of decentralized finance (DeFi). Paul Razvan Berg, the founder of Sablier, will join Mainframe as the head of development.
Cryptocurrency loans can create a healthy cycle of speculation, spending and monetary circulation. However, borrowers have limited exposure in today’s overcollateralized systems. Crypto-backed loans often require collateralization rations of 150% or higher, and borrowers don’t fully actualize their spending power. With Mainframe’s novel Guarantor Pools providing protection for collateral vaults, collateralization ratios can be much lower without increasing risk to the system.
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Mainframe proposes a novel zero-coupon bond system that allows borrowers to quickly offload debt for increased purchase power. Borrowers deposit collateral and mint tokens, representing a debt obligation. Lenders purchase the tokenized debt obligation, typically at a discount, and redeem them for face value at maturity. Individuals can also interact with the protocol as Guarantors, allowing