Wildcat Protocol V2 launches on Ethereum, targets institutional crypto
Wildcat, the decentralized lending protocol, announced the launch of its second version (V2) on the Ethereum network. The project's X account revealed that the deployment to the mainnet incurred a cost of roughly 0.06969 ETH, equivalent to approximately $180.
Laurence Day, a prominent figure in the Crypto Twitter community and a creator of Wildcat, stated that while the mainnet launch proceeded without issues, it will take about a week for the full features to be unveiled.
Wildcat, co-founded by Indexed Finance's Dillon Kellar and with Wintermute's Evgeny Gaevoy as a silent partner, provides an open marketplace for ratified borrowers to establish fixed-rate, on-chain credit facilities without dictating borrowing terms or assets. This approach contrasts with traditional platforms and other DeFi credit protocols like Aave, Euler, and Compound, as Wildcat allows for undercollateralized loans and does not require borrowers to submit financial details, relying instead on their reputations.
The protocol's design addresses the challenge of creating credit scores for on-chain entities within the pseudonymous and Sybil-resistant nature of the cryptocurrency space. Day emphasized that while the system does entail risks, it is primarily aimed at institutional crypto participants such as funds, market makers, and DAOs, rather than retail investors.
Wildcat V1 was primarily utilized by Wintermute, but with the launch of V2, the protocol expands its capabilities, enabling borrowers to define their own loan terms, including reserve ratios, maximum capacity, and yield rates. They can also set the length of the withdrawal cycle, designate eligible lenders, and establish KYC processes for their vaults.
The team behind Wildcat has cautioned users about the inherent counterparty risk, noting that while legal recourse is available for defaults, recovering full asset returns is unlikely if a borrower disappears. This stance underlines the need for due diligence in the post-FTX landscape.
The idea for Wildcat originated from the collapse of Terra, an algorithmic stablecoin platform. Day believes that bringing credit activities on-chain will enhance transparency and could help prevent the kind of widespread failure witnessed after Terra's demise. In terms of protocol governance, the whitepaper for Wildcat states that there is no token associated with the system, and the team has requested that users refrain from inquiring about airdrops.
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