DeFi protocol Altitude has reached over $10 million in total value locked (TVL) following its public launch, according to information shared with Finbold on July 14.
The collateral-optimized lending platform achieved this milestone in less than a month after completing its private beta in mid-June.
Bitcoin (BTC) and Ethereum (ETH) deposits have doubled to $10 million since the private beta conclusion, driven by retail users seeking to optimize their crypto collateral for borrowing.
Altitude’s protocol automatically rebalances borrowing based on collateral price fluctuations to maintain optimal loan-to-value (LTV) ratios.
The platform addresses inefficiencies in traditional DeFi lending, where borrowers typically maintain LTVs of 30-40%, leaving up to half of their capital unused. Altitude’s dashboard displays loan health tied to LTV and allows users to adjust parameters.
Protocol mechanics and funding
When collateral values rise, Altitude uses the increase to borrow additional funds and channels them into yield-generating strategies to reduce loan balances.
If collateral values drop, the protocol reallocates funds to the lending pool to maintain ideal LTV ratios. The system also adjusts positions to secure competitive lending rates.
Altitude is backed by $6.1 million in funding from web3 investors, including Tioga Capital, New Form Capital, and GSR.
Featured image via Shutterstock.
