Popular decentralized finance platform Yearn Finance has announced a new lending protocol dubbed StableCredit.
StableCredit combines tokenized debt stablecoins, lending and single-sided automated market makers to offer what it describes as “a completely decentralized lending protocol” reminiscent of MakerDAO (MKR).
Introducing StableCredit, a new protocol for decentralized lending, stablecoins, and AMMs. https://t.co/Cuoo2OMi5H
— yearn.finance (@iearnfinance) September 10, 2020
Users can deposit USD Coin (USDC) to mint StableCredit USD at a ratio of up to 75%, which can then be then exchanged for other crypto assets. To release the locked USDC, users must deposit the borrowed StableCredit USD back into the protocol.
A Sept. 10 announcement states that StableCredit’s user interface is currently being finalized, predicting the protocol will be publicly launched “in the coming weeks.”
Notably, the protocol will not distribute a governance token to users — a tactic frequently used to incentivize the use of new DeFi platforms. Yearn Finance’s own governance token YFI has been a major beneficiary of the recent DeFi bubble, gaining more than 800% during August to tag an all-time high above $38,000.
Earlier today, Yearn Finance’s creator Andrew Cronje expressed a certain amount of disdain for the current state of the DeFi sector:
Current state of "defi" (degenerate finance) pic.twitter.com/UcNKvzNfII
— Andre Cronje (@AndreCronjeTech) September 10, 2020
Yearn has garnered popularity through its variety of lending protocols, with its “Vaults” recently attracting investors with the promise of high returns and reduced transaction fees through pooling.
YFI has gained 11.4% over the past 24 hours as the market rallies in response to Coinbase Pro announcing it will support the token from September 14.