Case Study: How Credit Coop Empowered D8X’s Capital-Efficient Launch on Arbitrum
In the competitive world of decentralized finance (DeFi), efficient capital deployment can make or break a product launch. Traditional lending models require extensive overcollateralization, forcing projects to lock up valuable assets that could fuel growth. By partnering with Credit Coop, D8X found an innovative solution to this challenge, securing critical launch liquidity with just 25% collateral upfront.
Capital Efficiency with Minimal Upfront Collateral
With Credit Coop’s flexible and efficient credit platform, D8X successfully launched its perpetual futures product on Arbitrum with just 25% collateral upfront. Unlike traditional lending models, which require borrowers to lock away excess collateral, Credit Coop’s smart contract-based approach allowed D8X to access credit backed by future cash flows, preserving capital for growth. While this arrangement was undercollateralized from D8X's perspective, Credit Coop's smart contracts protected lenders by overcollateralizing through the secured use of proceeds.
"With Credit Coop, we secured credit to boost liquidity for our launch on Arbitrum with just 25% upfront collateral. It's a win-win: we preserve capital for growth while our lender gains enhanced security." – Caspar Sauter, Co-Founder at D8X
Credit Coop's approach pushes the boundaries of traditional lending by enabling lenders to use yield-bearing assets as the loan currency itself. In this case, the lender provided the loan in Staked USDA (stUSD), which is Angle Protocol's yield-bearing version of their USDA stablecoin. This innovative feature allowed the lender to continue earning yield on their staked USDA while providing D8X with essential launch liquidity on Arbitrum. The result: a capital-efficient financing solution that maximized benefits for both parties.
The Power of Smart Contract-Based Lending
This partnership demonstrates how Credit Coop's smart contract architecture enables truly flexible lending. Through automated and adaptable loan agreements, Credit Coop helped D8X secure financing precisely structured to its launch needs. This flexibility freed D8X from traditional financing constraints, allowing them to focus capital on growth and product development.
Outcomes and Impact
D8X's successful launch on Arbitrum validates the potential of Credit Coop's capital-efficient approach to DeFi lending. By enabling lenders to use yield-bearing assets while providing borrowers flexible terms, Credit Coop is creating new possibilities for projects that need innovative financing solutions.
About D8X: D8X is an institutional-grade perpetual futures DEX with a financial engineering approach that elevates the way perpetual futures can be traded on-chain. D8X’s pricing mechanism adapts to changing market conditions protecting liquidity providers and profitable traders in volatile periods, resulting in superior DeFi trading conditions. D8X also offers leveraged prediction markets enabling users to bet on politics, sports and entertainment.
About Angle: Angle is a DeFi Protocol specializing in building resilient stablecoin infrastructures. The Protocol’s main products are USDA, the most reliable USD stablecoin, and EURA (formerly agEUR), the most traded Euro stablecoin. Angle Labs, the main contributor to Angle Protocol, also powers Merkl, a platform enabling foundations, DAOs, and protocols such as Arbitrum, Uniswap, or Aave to create tailored and efficient onchain incentive programs to optimize their liquidity and growth.
About Credit Coop: Credit Coop is a private credit platform improving financing for businesses by turning future cash flows into collateral through smart contracts. This innovative approach offers businesses a more flexible and capital-efficient way to secure growth capital, addressing the limitations of traditional lending models. With over $20 million in credit already deployed and zero defaults, Credit Coop is driving the growth of businesses.
