Atlendis – Deep Dive

Overview

Atlendis, a pioneering decentralized credit protocol, was launched in April 2021 by Alexis Masseron, Charlotte Eli, and Stéphane Coquet. This trio, with their roots in ConsenSys, brings a synergistic blend of expertise in blockchain software development, financial engineering, data science, and decentralized finance (DeFi). Atlendis is revolutionizing the DeFi landscape by bridging the gap between retail investors on the blockchain and institutional borrowers from within and beyond the DeFi space. The platform’s core mission revolves around democratizing access to DeFi benefits, offering an array of user-friendly products and services tailored for those without extensive technical knowledge. In its relatively short span since inception in 2021, Atlendis has successfully facilitated over $7,000,000 in loans and boasts a Total Value Locked (TVL) exceeding $400,000, marking its rapid growth and impact in the DeFi sector.

Key advantage of the platform

Atlendis distinguishes itself with several key advantages in the DeFi landscape. Notably, each liquidity provider’s investment on the Atlendis protocol is uniquely encapsulated as a Non-Fungible Token (NFT) position, offering a blend of security and exclusivity. A standout feature of Atlendis is the empowerment of investors in decision-making; lenders have the autonomy to selectively choose borrowers to whom they wish to lend. This bespoke approach enables investors to align their lending with their risk appetite and preferences. In addition, the platform offers unparalleled flexibility, allowing lenders to deposit into their chosen lending pool at any moment and at their preferred lending rate. Furthermore, Atlendis enhances the efficiency of capital utilization. Funds awaiting deployment in loans are strategically allocated to Aave, a reputable third-party liquidity protocol. This arrangement ensures that lenders’ idle capital continues to generate returns, benefiting from Aave’s attractive Annual Percentage Yield (APY). These features collectively position Atlendis as an innovative and user-centric platform in the DeFi space.

Track records

Historical returns

Data not available

Default rate

Data not available

Total investment on the platform per year

Data not available

Total cumulative investment on the platform

Data not available

Investment opportunities

Atlendis is a decentralized credit protocol in the crypto space, providing loan to financial institution with the opportunity to participate in crypto lending.

There is no minimum investment amount for investors in Atlendis’s project.

ID	Fluna_USDC_90 days	Karmen_USDC_120 days
Borrower	Fluna	Karmen
Asset	USDC.e	USDC.e
Borrower score	BB	NA
Credit limit	750000	100000
Maturity	90 days	120 days
Withdrawal fee	NA	0,15%
Early repay option	ON	NA
Repayment period	3 days	2 days
Avg.Lending Rate	11%	11,03%
Avg. Borrowing.Rate	10-12%	8-12%
About borrower	Fluna is a pan-African trade finance marketplace for African business to access credit and market intelligence tools. Fluna is able to underwrite transactions 12x faster than traditional commercial banks and automate financial data reporting in order to further mitigate risks. The company supports mid-market exporters in Africa with much needed working capital in order to satisfy demand from buyers in the United States and Europe. .	Karmen simplifies access to financing for all digital SMEs by offering a new, faster, 100% digital approach to financing, leveraging Revenue Based Financing (RBF) Karmen offers financing solutions of up to €10 million in less than 48 hours, based on a data-driven analysis of operational and financial performance of SMEs. Founded in 2021 by Gabriel Thierry, Baptiste Wiel and Sébastien Lubineau, Karmen has raised €75m+. By 2023, Karmen intends to support the growth of several hundred digital SMEs in France, and soon in continental Europe.

All loan in the protocol are not collateralized.

Investing process as a retail investors

1. Wallet Setup and KYC Process: Investors begin by setting up a digital wallet using Metamask, WalletConnect, or similar hot wallets to interact with the Atlendis protocol. For those who already possess a wallet, it can be easily connected to Atlendis. The initial step also involves providing basic information such as name and email, followed by completing the Know Your Customer (KYC) verification process to ensure compliance and security.
   
2. Exploring Investment Options: Atlendis offers a diverse range of investment opportunities. Investors are encouraged to engage in due diligence by exploring detailed information available on each lending pool. The platform presents each investment option with comprehensive details about the borrower company and the specifics of the investment, facilitating informed decision-making.
   
3. Investment Decision and Execution: After thorough review and consideration, investors can proceed with their investment choices directly on the platform. Atlendis simplifies this process, allowing for a seamless and efficient investment experience.
   
4. Monitoring Investments: Post-investment, Atlendis provides a robust dashboard where investors can track the progress of their investments. The platform ensures regular updates and transparency, offering investors a comprehensive view of their projects, performance metrics, and other relevant details.

Team and management

Atlendis is led by a team of experts with a wealth of experience and background in blockchain software development, financial engineering, data science, and DeFi.

Alexis Masseron, Co-Founder & CEO of Atlendis

Alexis Masseron holds a Master of Engineering in Telecommunication and Network engineering from ESME engineering school. He worked during 6 years in Engineering and occupied several high position is prestigious company such as loT & blockchain lead dev of Aubay France, Full stack Engineer of VariabL, Software Engineer of ConsenSys. He started entreprenarial journey by being Co-Founder of The Block Cafe and he’currently the Vice-president DeFi committe of Adan.

Charlotte Eli, Co-Founder & Research Director of Atlendis

Charlotte Eli holds a Bachelor’s degree, Mathematics from Ecole polytechnique federale de Lausanne and Master degree, financial Engineering from Ecole polytechnique federale de Lausanne. She has an Advanced Master’s degree and Data Sciences from Telecom Paris. She worked during 6 years in Finance area and occupied several high position in prestigious company such as : Buy Side Equity Analyst, Assistant Fund Manager of London and Capital, Quantitative Research Analyst of BNP Paribas, Quantitative Research Engineer of ConsenSys.

Stéphane COQUET, Co-founder & CTO of Atlendis

Stéphane COQUET holds a Bachelor degree in Engineering Bachelor of Science on Innovation management from Ecole Polytechnique and hold a degree in Civil Engineer from Mines Paris. He worked during 1 years as Consultant in prestigious company such as Eleven, Roland Berger. He worked during 5 years in Software Engineer area and occupied several high position in prestigious company such as Software Engineer of Artefact, Blockchain Software Engineer of ConsenSys.

Mission and Values

Atlendis, a pioneering DeFi protocol, is dedicated to democratizing access to decentralized finance. Its core mission revolves around offering a comprehensive range of products and services, meticulously designed to simplify DeFi for users regardless of their technical proficiency.

At the heart of Atlendis lies a strong commitment to fostering a community-driven ecosystem, ensuring the protocol is inclusive and accessible to all. This ethos is mirrored in their core values:

1. Decentralization: Atlendis champions a culture of empowerment and leadership, encouraging team members to actively contribute ideas and partake in pivotal decisions shaping the organization’s trajectory.
2. Transparency: Integrity and openness form the cornerstone of Atlendis’s operations. This value not only enhances trust in the brand but also fosters a sense of mutual respect and honesty within the community.
3. Flexibility: In a rapidly evolving industry, Atlendis prioritizes adaptability and a thirst for learning. This mindset enables the protocol to stay ahead of industry trends and embrace diverse perspectives.

Atlendis stands out in the DeFi space with innovative features such as enhanced capital efficiency and a unique order book mechanism. These functionalities position Atlendis as a front-runner in providing accessible and efficient financing solutions, bridging the gap between traditional finance and the burgeoning world of DeFi.

Trustfulness of the platform

Key investors of the company

	Lemniscap	ParaFi Capital	Tioga Capital
Asset under Management	NA	Over 100 million $	50 million $
Date of creation	2017	2018	2020
Founder	Roderik van der Graaf	Ben Forman	Michiel Lescrauwaet
Website	https://lemniscap.com/	https://parafi.com/	https://tioga.capital/

Institutional lenders

There aren’t any institutional investor using the platform to invest on private credit.

Licenses

Atlendis and Atlendis Flow form an interconnected presence within the expansive Atlendis ecosystem. Employing blockchain and open banking, Atlendis democratizes SME financing and broadens investor access to new assets. To simplify this process, Atlendis Flow, registered with the French Financial Authority as a PSAN, abstracts technology, presenting borrowers in the decentralized finance (DeFi) space with a user-friendly solution to prioritize their core business.

Fees and charges

During repayment, Atlendis imposes an interest fee on the earnings generated by lenders. The current interest fee rate correspond to 10 %. At withdrawal time a fee is applied to the withdrawn amount, the current withdrawal fee on Atlendis is 15 bp (0,15%). A withdrawal fees and interest fees go to Atlendis treasury.

Liquidity and exit options

Atlendis doesn’t have a secondary market yet, so investors can’t directly sell their positions to other investors. However, they can still exit their positions by finding another lender who is willing to take over their investment in the loan originator.

Users feedback

Data is not available

Risk Analysis

Investors engaging with Atlendiss should be attentive to specific and significant risks. It’s essential for them to comprehend the platform’s risk management strategies in order to safeguard their funds effectively.

Credit risk

Borrower default risk

Atlendis implements a rigorous due diligence protocol to manage borrower default risk effectively. This process begins with an external assessment of creditworthiness, entrusted to specialized third-party partners like Credora and Cred protocol, proficient in scoring Web3 entities.

1. Third-Party Assessment: These partners utilize a comprehensive credit scoring system that integrates both on-chain and off-chain data, providing a holistic view of a borrower’s financial health.
2. Cred Protocol: Specialized in credit services, Cred Protocol offers in-depth analysis, scoring, and reporting. This methodical approach ensures a precise evaluation of a borrower’s creditworthiness.
3. Credora’s Ratings: Complementing this, Credora provides technology-driven, real-time assessments, yielding independent ratings. Their analysis includes key Risk Metrics for portfolios such as Equity, Balance, and Margin Usage a critical measure of an investor’s use of borrowed capital for trading or investment activities.
4. Whitelisting Borrowers: Following these assessments, Atlendis undertakes a meticulous whitelisting process. This stage involves a thorough examination of corporate entities, focusing on their historical performance, the credibility of the team, and their business acumen.

This comprehensive due diligence framework plays a crucial role in ensuring that only creditworthy borrowers are permitted to request funds on Atlendis, thereby significantly mitigating the risk of borrower default and enhancing the security of the investments made through the platform.

Platform risk

Operational risk

Atlendis prioritizes operational security through meticulous audits and robust data management.

1. Smart Contract Audits: The platform’s smart contracts are rigorously reviewed by distinguished blockchain protocol-related companies. Atlendis is transparent about these audits; while the V1 audit report is currently accessible, the platform plans to share the V2 audit reports shortly.
2. Data Management on Blockchain: Customer data is securely stored on the Polygon blockchain, which handles the management of this data, ensuring reliability and security.
3. KYC Management: Atlendis entrusts Synaps for identity verification. Synaps specializes in comprehensive KYC/AML and KYB processes, affirming the authenticity of user identities and maintaining regulatory compliance.
4. Upcoming Security Initiatives: As part of its continuous commitment to security, Atlendis intends to launch a bug bounty program. This proactive approach will encourage the discovery and rectification of potential vulnerabilities, further strengthening platform security.
5. Communication and Transparency: Atlendis keeps its users informed through multiple channels, including Medium, its official website, and a dedicated Discord channel. This ensures that investors and stakeholders are updated on operational developments, security measures, and other pertinent information.

These measures collectively contribute to Atlendis’ operational integrity, fostering a secure and trustworthy environment for decentralized finance activities.

Regulatory risk

Atlendis operates within a well-regulated framework, balancing innovative DeFi solutions with compliance:

1. Atlendis Ecosystem: The Atlendis ecosystem, encompassing Atlendis and Atlendis Flow, facilitates connections between institutional borrowers and on-chain lenders. This ecosystem plays a pivotal role in merging traditional finance and blockchain technology.
2. Atlendis Flow: As a key component, Atlendis Flow simplifies the interaction with Atlendis’ smart contracts. It’s designed to provide a seamless fintech experience, enhancing accessibility to blockchain-based credit facilities and loans.
3. Regulatory Compliance: Atlendis Flow has attained significant regulatory milestones by securing registration as a PSAN (Provider of Services on Digital Assets) from France’s AMF (Autorité des Marchés Financiers) and ACPR (Autorité de Contrôle Prudentiel et de Résolution). This underscores Atlendis’ commitment to adhering to regulatory standards and ensuring investor protection.
4. Governance and Oversight: The platform’s governance structure is carefully managed. Founders maintain control over key operational aspects, including maintenance functions and protocol parameter adjustments. This centralized governance approach ensures consistency in decision-making and platform evolution.

Atlendis’ blend of innovation and regulatory adherence positions it as a trustworthy and forward-thinking player in the DeFi landscape, offering secure and compliant financial services in the blockchain domain.

Platform failure

Atlendis operates with a centralized management model, heavily reliant on its founders for governance and decision-making. This structure poses certain risks in case of unforeseen challenges:

1. Centralized Protocol Governance: The protocol’s governance is centralized, with key decisions and maintenance functions resting solely in the hands of the founders. This structure, while efficient, can be a vulnerability if the founders are unable to perform their duties.
2. Lack of Insurance or Protection Schemes: Currently, Atlendis does not offer any insurance or dedicated protection schemes for investors against platform failure. This absence places the onus of risk entirely on the investors.
3. Business Continuity and Redundancy Measures: Atlendis employs backup systems and redundancies, integrated into its smart contract infrastructure, to mitigate risks associated with platform disruptions. These measures are designed to ensure continuous operation.
4. Emergency Protocols: Despite having emergency protocols in place, there is limited public information regarding specific business continuity measures Atlendis would enact in crisis scenarios.
5. Risk in Governance Disappearance: The platform’s reliance on its founders for governance raises concerns about the protocol’s stability in their absence. Without a clear succession or decentralized governance mechanism, the protocol could face significant risks in such situations.

Overall, while Atlendis demonstrates a commitment to operational efficiency and smart contract reliability, its centralized governance and lack of investor protection mechanisms highlight areas for potential improvement in risk management strategies.

Liquidity risk

Atlendis’ approach to liquidity management presents both opportunities and constraints for investors:

1. Absence of a Secondary Market: Atlendis currently does not offer a secondary market, restricting the ability for investors to trade or transfer their positions among themselves. This limitation emphasizes the need for investors to be aware of the liquidity constraints inherent in their investments.
2. Exit Mechanism: The platform provides an option for investors to exit their positions as per their preference. However, this exit mechanism is dependent on the availability of another lender willing to invest with the same loan originator, creating a conditional liquidity scenario.
3. Dependence on Market Interest: The ability to liquidate positions is directly influenced by market demand. Investors seeking to exit must rely on the presence of other interested lenders, which can introduce uncertainty and potential delays in the liquidity process.
4. Investor Consideration: Given these dynamics, investors should exercise prudence and consider the liquidity risks associated with their investment choices on the Atlendis platform, particularly in scenarios where immediate liquidity might be necessary.

In summary, while Atlendis facilitates investor exits, the lack of a secondary market and the dependence on other lenders for liquidity highlight significant considerations for investors when engaging with the platform.

Fraud risk

Borrower fraud

Atlendis implements a meticulous borrower vetting process, integrating both internal evaluations and external expertise. The platform’s whitelisting procedure rigorously assesses corporate entities based on their historical performance, team credibility, and established business operations. To enhance this assessment, Atlendis collaborates with specialized third-party entities like Credora and the Cred protocol, renowned for their proficiency in evaluating Web3 organizations. These partners employ advanced techniques, merging on-chain and off-chain data, to verify borrower identities comprehensively.

Crucially, Atlendis focuses on working with institutional borrowers, whose commitment to maintaining their reputation and public image inherently discourages fraudulent activities. In the rare event of fraudulent behavior, such incidents are indelibly recorded on the blockchain, significantly deterring potential fraudsters due to the high reputational risks involved. Furthermore, Atlendis is committed to maintaining transparency and trust with its investor community. Should any fraudulent activities occur, the platform ensures prompt communication of such events via its website’s forum and newsletter, keeping investors informed and upholding the integrity of the investment environment.

Platform fraud

Atlendis operates with a system that ensures investor funds are managed with utmost security and autonomy. Investments on the Atlendis platform are facilitated through smart contracts, which autonomously handle the deposit and return of funds. This process eliminates the need for direct handling of investor funds by the platform, thereby reducing the risk of mismanagement.

To further safeguard against internal fraud, Atlendis has established a robust governance structure. This system is controlled by the founders through a multisignature wallet, which requires unanimous consensus among all founders for any significant decisions. This measure ensures that any substantial actions, including decisions on fund requests, are thoroughly vetted and agreed upon by the entire governance team.

However, it’s important to note that while this system provides a significant layer of security, it is not infallible. In the unlikely scenario where all founders collude to orchestrate fraud, the existing measures may not provide a remedy. This potential vulnerability highlights the need for investors to consider the trustworthiness and track record of the platform’s leadership when making investment decisions. Atlendis, in its commitment to transparency and integrity, endeavors to maintain investor trust by ensuring responsible and ethical governance practices.

ESG risk

The Atlendis platform, while innovative in the decentralized finance (DeFi) sector, currently provides limited information on its Environmental, Social, and Governance (ESG) criteria. As a relatively new entrant in the market, Atlendis has yet to disclose detailed policies or practices related to ESG considerations. This lack of specific ESG information may be a point of consideration for investors who prioritize sustainability and responsible investment practices.

It is noteworthy that as the DeFi space evolves, there is growing awareness and emphasis on incorporating ESG factors. Investors increasingly expect platforms to not only provide financial returns but also to consider the broader impact of their investments. In this context, Atlendis may benefit from developing and articulating a clear ESG strategy. Such an approach would align Atlendis with emerging trends in sustainable investing and could potentially enhance its appeal to a broader range of investors seeking to align their financial goals with their values.