Altitude, a DeFi lending platform, has opened its collateral-optimized lending service to the public following an eight-month private beta phase, based on information disclosed to Finbold on Friday, June 13. The platform enables automated strategies for efficient collateral management in lending and borrowing activities.
During the beta testing period, Altitude attracted over $5 million in total value locked (TVL) from whitelisted participants. The platform is designed to help users manage onchain borrowing while maintaining optimal capital efficiency and preventing under-collateralization.
Automated rebalancing features
Altitude offers automated rebalancing capabilities, adjusting borrowing positions based on collateral price movements for assets like Bitcoin (BTC) and Ethereum (ETH). The platform’s dashboard displays loan health metrics based on loan-to-value (LTV) ratios with controls for parameter adjustments.
When collateral values increase, Altitude borrows against the assets and uses the capital to generate yield that reduces the loan amount. Conversely, when collateral values decrease, the platform returns funds to lending pools to maintain optimal LTV ratios. The system also identifies favorable lending rates and adjusts positions to secure the most attractive financing terms.
Addressing capital efficiency challenges
The platform targets capital efficiency issues in DeFi, where users typically borrow at 40-50% LTV ratios, leaving significant capital unused. Beta users have reported improved capital efficiency and reduced complexity in borrowing processes, allowing them to focus on yield generation opportunities.
Funding and market positioning
Altitude raised $6.1 million in funding from web3 venture capital firms, including Tioga Capital, New Form Capital, and GSR. The platform positions itself as the first DeFi protocol to offer automated rebalancing for borrowing based on collateral price movements.
The public launch provides DeFi users access to lending and borrowing activities through an interface that reduces the need for constant position monitoring while enabling yield generation on crypto assets.
Featured image via Shutterstock.
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