Hello World from Apricot

— Lend to earn. Borrow with less. Apricot on Solana

Today we are excited to introduce Apricot Finance, a new DeFi project empowered by Solana. The Apricot project will initially and shortly launch with Apricot Lend, a collateralized lending protocol that seeks to maximize users’ borrowing power while minimizing liquidation penalties and uncertainties. Apricot has additionally planned to launch a rich set of related products in near future, such as orderbook-based fixed rate loans, low-to-no collateral loans, template-based high frequency operations, etc., to accommodate a wide range of user needs. It is the team’s ultimate aspiration to make Apricot the go-to platform for personalized DeFi solutions and therefore truly enable everyone to “DeFi the way you DeFi”.

The Apricot team has a strong background in applied economics and traditional finance, bringing years of academic and professional expertise in fintech consulting, investment banking, high-frequency trading, and alternative credit investing. All members embraced DeFi at some point in 2020 and have since then become true believers in its power and potential to disrupt and reshape today’s financial markets. The team came together in early 2021 and agreed upon the need for a more borrower-friendly lending model that will not come at the expense of lender protection — the very inspiration for Apricot Lend. We believe such a model is now possible with Solana given its sub-second finality and high transaction throughput.

Apricot Lend

As Apricot’s debut product, Apricot Lend proposes to act in borrowers’ interest by setting below-market collateralization requirements, lowering liquidation thresholds, and limiting liquidation penalties. While lenders interests are inherently protected by over 100% collateralization ratio and liquidation threshold, we believe a borrower-friendly model that attracts borrowing demand could prove to be mutually beneficial by driving up the deposit interest rate under our interest rate model.

In addition, Apricot Lend will establish a 2-hour liquidation guarantee (Apricot Rescue), giving borrowers peace of mind that their positions can be cleared within a short time frame with highly predictable outcomes. When Apricot grows to a sufficient scale, we may choose to complement the lending model with a securitization-like mechanism.

More details about Apricot Lend will be formally discussed in our upcoming articles.

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APRICOT FINANCE

APRICOT FINANCE

A next-generation lending protocol that offers cross-margin leveraged yield farming with downside protection