Decentralized lending protocol Wildcat has launched its second version (V2) on the Ethereum network. The mainnet deployment cost about 0.06969 ETH, which is about $180.
Wildcat creator Lawrence Day noted that the launch went smoothly, but it will take about a week for all the features to be fully deployed.
Wildcat provides an open platform where approved borrowers can create fixed-rate credit lines without imposing loan or asset conditions. Wildcat allows unsecured loans and does not require borrowers to provide financial data, instead relying on their reputation.
The protocol addresses the issue of creating credit ratings for online organizations in the context of anonymity and Sybil resistance in the cryptocurrency space. Wildcat is targeted at institutional participants in the cryptocurrency market, such as funds, market makers, and DAOs, rather than retail investors.
Wildcat V2 expands the capabilities of the protocol, allowing borrowers to define their own lending terms, including reserve ratios, maximum capacity, and interest rates. They can also set the duration of the withdrawal cycle, appoint authorized lenders, and establish KYC processes for their stores.
The Wildcat team warned users about the inherent risks of counterparties, noting that full asset reimbursement is unlikely if the borrower disappears.
The idea of Wildcat emerged after the collapse of Terra. Day believes that moving credit operations to blockchain will increase transparency and may help prevent large-scale failures like those that occurred after Terra's fall.
The Wildcat whitepaper states that there is no token associated with the system, and the team asks users to refrain from questions about airdrops.
