Lotus Protocol
@LotusFi_
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Tranched DeFi credit markets you can actually underwrite. 1 → 2 → ∞
Ethereum
Joined August 2025
What’s inside your vault? When you look under the hood, most vaults start to look the same. Introducing Lotus: a new credit engine 𑁍 https://t.co/0ORGZAs5pK
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@BlockAnalitica @PrimozKordez Lotus is built to allow risk mangers to compete on credit strategy with a full risk curve brought onchain https://t.co/JDzLdO4lIL
In traditional risk-curated, isolated market models, the market-dominant LLTV for a specific collateral/debt pair often caters to the most risk-tolerant curators. This short-term advantage in TVL growth makes it difficult for risk-averse curators to establish competitive markets
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We're proud to have @BlockAnalitica, one of the most experienced risk management teams in DeFi, building with us from day one. They were among the first to join us as a design partner and immediately saw how connected risk tranches unlock entirely new risk management strategies.
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I’m in Denver this week with @jordantonani @Davidareising meeting @LotusFi_ partners. DM us if you’re an institution looking for new DeFi lending rails and possibilities and want to meet!
What’s inside your vault? When you look under the hood, most vaults start to look the same. Introducing Lotus: a new credit engine 𑁍 https://t.co/0ORGZAs5pK
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If someone told you they'd pay you 2x the yield to accept small, modelable losses during flash crashes (only lending against BTC and ETH) would you take it? That's the option that DeFi’s market structure has never allowed to exist. Until @LotusFi_. https://t.co/jruVEzbKSf
lotuslabs.net
Today’s market structure forces lenders into a false choice: accept money-market-like yields on blue-chips, or chase returns on sketchy, correlated collateral. Here’s how tranched markets break this...
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Why can’t you earn high yields lending against BTC and ETH? It's because the current lending market designs don't allow for it.
The Missing Middle in DeFi Lending Boring yield on blue-chip collateral or high yield with tail risk. Where are all the options in between? It’s a market structure problem. Market structure problems have market structure solutions. https://t.co/jruVEzbd2H
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Isolated markets can't support risk segmentation without destroying liquidity. The Missing Middle is a market structure problem.
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Interest rates are based not only on utilization but rather as a function of LTVs, collateral quality, oracles, and other risk parameters. The goal is to have better risk pricing within DeFi lending/borrowing.
What’s inside your vault? When you look under the hood, most vaults start to look the same. Introducing Lotus: a new credit engine 𑁍 https://t.co/0ORGZAs5pK
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How to evaluate a "high-yield" DeFi vault: What collateral is actually inside? What's the LLTV? What happens when that collateral drops 50% in an hour? If the answer is "catastrophic loss" then you're not being paid for risk. You're being paid to ignore it.
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Lotus introduces a third path: earn premium yields on blue-chip collateral by accepting transparent, quantifiable risk. You can finally get paid for taking more risk, not just different risk.
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The missing middle exists because risk is either socialized (one blended rate) or isolated (liquidity splits and dies in the middle).
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Most DeFi credit vaults still force two choices: 1. conservative blue-chip lending at very low yield 2. “high yield” that carries hidden tail risk
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The Missing Middle in DeFi Lending Boring yield on blue-chip collateral or high yield with tail risk. Where are all the options in between? It’s a market structure problem. Market structure problems have market structure solutions. https://t.co/jruVEzbd2H
lotuslabs.net
Today’s market structure forces lenders into a false choice: accept money-market-like yields on blue-chips, or chase returns on sketchy, correlated collateral. Here’s how tranched markets break this...
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Lotus is built to let risk managers manage risk. Connected tranches unlock a full spectrum of risk without liquidity fragmentation. Proud to have @BlockAnalitica as a design partner.
In traditional risk-curated, isolated market models, the market-dominant LLTV for a specific collateral/debt pair often caters to the most risk-tolerant curators. This short-term advantage in TVL growth makes it difficult for risk-averse curators to establish competitive markets
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Vaults are the chassis. Credit infrastructure is the engine. Until now, the engine has had only two gears.
What’s inside your vault? When you look under the hood, most vaults start to look the same. Introducing Lotus: a new credit engine 𑁍 https://t.co/0ORGZAs5pK
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Earn at your chosen risk level. See your exposure before you deploy capital and earn while live risk ratings verify your vault stays on track.
The mental model for Lotus: You pick your spot on the risk curve. Your capital serves borrowers at that risk level or below. Higher risk = higher yield. Lower risk = lower yield. The reward spectrum actually matches the risk spectrum.
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There can be rate advantages when borrowing onchain, but lots of institutions borrow more regularly and at larger scale offchain via banks/CEXs/PBs as they get: 1. Greater capital efficiency/more leverage 2. Liquidations with grace periods 3. More stable borrow rates This is
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The mental model for Lotus: You pick your spot on the risk curve. Your capital serves borrowers at that risk level or below. Higher risk = higher yield. Lower risk = lower yield. The reward spectrum actually matches the risk spectrum.
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We're not promising magic. Credit has risk. We're building infrastructure that makes risk explicit, not hidden. Read the full piece ⤵️
lotuslabs.net
Lotus is a tranched DeFi credit market designed to deliver higher yields on high-quality collateral.
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