How can you execute onchain private credit repo at an institutional scale?
We explored the issue in depth for the @MidasRWA mF-ONE token, in cooperation with @FasanaraCapital, onboarding today on @MorphoLabs thanks to Smokehouse USDC
mF-ONE is a composite of an instant liquidity sleeve, a standalone crypto delta-neutral strategy and an active allocation to the Fasanara F-ONE fund.
F-ONE is a multi-strategy private credit fund offering diversified exposure to SME private credit
Fasanara has a longstanding track record in financing SMEs through technology-enabled origination platforms. It launched its invoice financing activity in 2014 and established its flagship fund in 2017
Invoice financing refers to a cash advance provided to the seller, backed by an invoice payable by the debtor. Funds like Fasanara address the financing gap left by traditional banks by offering capital to small companies while gaining exposure to larger SMEs, on which it has greater access to data to assess credit risk.
The market is set to effective 84.5% LTV, combining Morpho's 91.5% LTV + a 7.7% oracle discount
This provides a larger liquidiation bonus and a competitive LTV ratio
The initial borrow cap in Smokehouse USDC will be set to $20m and scaled conservatively
Long-dated maturity mismatch presents opportunities for holders and speculators. However, it is still risky and should be done carefully.
We hope that this structure can provide notes for other market participants to learn from as the landscape for private credit in DeFi expands
Follow @SteakhouseFi for more maturity mismatched formatting
Disclaimers:
6.18K
51
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.