What is Asgard?

Asgard is an On-Chain Credit Layer

Asgard is a DeFi protocol on Solana that aims to become a Credit Layer to increase capital efficiency in Solana DeFi.

Asgard Credit Layer sits on top Solana DeFi protocols.

Credit Accounts:

At its core, Asgard introduces Credit Accounts - a new on-chain primitive for undercollateralized interactions with Solana DeFi Protocols:

Think of Credit Account as a prime brokerage account

How it works?

  1. Borrower creates a Credit Account through Asgard and transfers their collateral to it.

  2. They can then borrow up to 10x the value of their collateral.

  3. Borrowed funds remain in the Credit Account but can be used across whitelisted Solana protocols.

From the borrower's perspective, it functions as a undercollateralized loan - they deposit a small amount of collateral to access up to 10x in credit. They cannot withdraw the borrowed funds to their wallet, but are free to use the funds as they see fit inside Asgard's large but well-defined boundary.

Borrower can draw upto 10x credit against their collateral. They are free to use the funds as they see fit inside Asgard's closed system, but cannot take out the funds to their wallet and run away with it.

However, the Credit Account itself remains overcollateralized, as (borrowed funds + collateral) > borrowed funds. Think of this as "borrowing in a bubble" that is:

  • Asgard simulating undercollateralization for the borrower while keeping the Credit Account overcollateralized.

  • Ensuring borrowers can't default through algorithmic security.

What can you use Asgard for?

With Credit Accounts, a Solana DeFi user can draw a credit line 10 times their collateral and use it across Solana's rich defi ecosystem:

  1. Margin Trade on $2B+ worth of liquidity on Solana's spot markets.

  2. Create Leveraged Positions like perps with 2x cheaper fees and less volatility than funding rates.

  3. Lever up on Solana's Liquid Staking Token (LST) yields.

  4. Lever up on Solana's Liquid Restaking Token (LRT) yields

  5. Lever up on LP yields of JLP and FLP pools.

  6. Lever up on Stablecoins Lending Yields.

  7. Lever up on Stablecoins Interest Rate Differentials.

  8. Borrow 10x more capital to farm upcoming airdrops, points and rewards.

Roadmap:

Learn about how we intend to create a Credit Layer that makes general purpose credit accessible for anyone using DeFi in our Secret Masterplan.

NextWhat is Credit?

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