DeFi

cryptobanking

/cryptobanking update

The Ethereum Credit guild hasn't seen a ton of growth in it's novel approach to lending, but seems to have made a niche for Pendle fixed yield tokens in WETH.

ECG combines optimistic governance (anyone can create markets without full quorum), and Curve-like gauges to control debt ceilings.

For now, over $250K of Pendle's fixed yield tokens closing in June are being used to earn leveraged yield for borrowers.

Suppliers who lock to increase the debt ceiling are currently earning GUILD tokens, on top of 8-12% APY in ETH terms.

Unsurprisingly, the Ethereum Credit Guild has not generated significant demand yet for borrowing in USDC terms, and hasn't had many users supplying USDC. Still these markets earn GUILD tokens and see between 8-15% APY when debt is taken, but with huge market shakeouts users seem risk off.

I'll keep an eye on Credit Guild as it has the potential for being a huge lending protocol on Arbitrum, and in general could be an interesting market to watch as the debt ceiling gauges gain more market share.

https://app.creditguild.org/

(Note I am a holder of GUILD tokens and active in supplying lending terms.)

I think like other lending protocols, they need others to integrate ECG to see some stronger demand.

Borrow/lend tends to struggle until there is a near "1-click" solution for others to use.

As we've seen, defi users are not typically sophisticated.