Wildcat Launches V2 on Ethereum Mainnet, Expanding Decentralized Lending Capabilities

Wildcat V2 Launch and Features

Wildcat, a decentralized lending protocol, has successfully launched its second version (V2) on the Ethereum mainnet. The deployment cost approximately 0.06969 ETH, equivalent to around $180. Laurence Day, a key figure in the project, confirmed that while the mainnet launch was smooth, it will take about a week for all features to be fully operational.

Wildcat V2 introduces significant improvements, allowing borrowers to define their own loan terms, including reserve ratios, maximum capacity, yield rates, and withdrawal cycles. Additionally, borrowers can designate eligible lenders and establish KYC processes for their vaults, providing greater flexibility and control.

Targeted at Institutional Participants

The protocol is primarily designed for institutional crypto participants such as funds, market makers, and DAOs, rather than retail investors. This focus is due to the inherent counterparty risks associated with undercollateralized lending. While legal recourse is available for defaults, recovering full assets is unlikely if a borrower disappears, emphasizing the need for due diligence.

Unique Approach to Decentralized Lending

Wildcat differentiates itself from traditional DeFi platforms like Aave, Euler, and Compound by enabling undercollateralized loans without requiring borrowers to submit financial details. Instead, the system relies on the reputation of borrowers, addressing the challenge of creating credit scores in the pseudonymous and Sybil-resistant crypto space.

Background and Vision

The idea for Wildcat emerged following the collapse of Terra, an algorithmic stablecoin platform. By bringing credit activities on-chain, the protocol aims to enhance transparency and prevent widespread failures like those seen after Terra's demise.

Notably, Wildcat does not have a native token, and the team has discouraged inquiries about airdrops, focusing instead on building a robust, governance-free protocol.

This launch marks a significant step in the evolution of decentralized lending, offering a more transparent and flexible alternative to traditional credit systems.