5 Crypto Projects Offering Undercollateralized Lending To Capital Markets

Under-guaranteed loans have existed in TradFi for years as “unsecured loans”. However, with DeFi, under-guaranteed loans are loans where the collateral from the borrowers is not sufficient to cover the amount taken.

Here are some of the projects that are pushing the boundaries of under-guaranteed loans.

Maple Finance

Maple Finance exists on Ethereum and Solana. It is a credit market that provides under-guaranteed loans for institutional borrowers.

Maple is enabling growth for institutions seeking on-chain capital. With it, lenders can earn sustainable returns by borrowing from different blue chip pools.

Additionally, the protocol has two governance tokens, $ MPL and $ xMPL, which allow token holders to participate in governance and share revenue fees.

Clear the pool’s finances

Clear Pool Finance is a decentralized market for unsecured institutional capital. With it, major institutions can access funds from a decentralized network of unsecured borrowers. Additionally, Clear Pool exists on Ethereum and Polygon. Lenders can earn attractive interest rates of USDC and multiple LP rewards paid in their token.

More importantly, anyone can lend and claim $ CPOOL rewards at any time.


Cardellino Finance lends to institutions and companies that provide both on-chain and off-chain guarantees. It uses the principle of “trust by consent” to allocate capital to borrowers.

Investors are classified into lenders and liquidity providers, both of whom earn sustainable returns on their investments. Goldfinch also regularly shares its native token, $ GFI, with supporters.


Atlendis Credit Protocol allows institutions to borrow credit from a decentralized pool of unsecured lenders. An NFT is generated to represent the parameters of the agreement between the lender and the borrower.

Protocol lenders can earn rewards even when they are not yet matched with a borrower.


TrueFi provides loans to institutional investors without any collateral. The protocol offers sustainable rates of return to cryptocurrency lenders. TrueFi is based on Ethereum and OxPolygon. Lenders can wager USDC, TUSD or USDT lent to borrowers.

In return, lenders earn high returns on equity along with the TruFi incentives.


In institutional lending, collateral is usually in the form of credit scores, bank balances, and proof of identity. Institutions normally have a lending threshold to protect the interests of lenders.

Previously, most of the financial instruments in TradFi were reserved for elites and big capital, but now DeFi allows anyone to participate. In DeFi, retail investors can lend to major capital markets and get good returns from their stablecoins.

If you found this informative article, you will like “DeFi Grizzly.fi protocol to launch overcollateralized Stablecoin pegged to the Swiss franc”.

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