Atlendis & Cicada Partners are thrilled to announce the opening of deposits for the Arjan Capital Pool on Mode Network. This launch marks a significant step forward in our ongoing effort to bridge private credit origination with the innovative capabilities of blockchain technology.

Innovative Collaboration with Mode Network

The integration with Mode Network, an Ethereum Layer 2 solution, plays a crucial role in enhancing the accessibility and efficiency of the Arjan Pool. Mode Network leverages the Optimism framework to create an on-chain economy that rewards network participation through various economic mechanisms, including a dynamic airdrop system. 

Lenders participating in the Arjan Pool on Mode Network will benefit from Mode’s airdrop mechanisms, which are designed to reward users for their network activity. This enhances the overall investment appeal and aligns with our commitment to reward our community actively​.

A Promising Venture with Arjan Capital

The lending transaction provides financing to Arjan, a UK-based speciality finance company, to support its short-term trade finance activities targeting the local Spanish medical and pharma market. This initiative highlights our commitment to innovation and strategic growth, providing investors a unique opportunity within the medical equipment trade finance sector. In addition to these activities, Arjan also manages the Artis Trade Invest fund, further demonstrating their comprehensive expertise and robust presence in trade finance markets. 

Enhanced Investment Structure

The Arjan Pool features a $6 million line of credit with a 180-day maturity, overcollateralized with a portfolio of trade finance receivables insured by an investment grade-rated insurer(Moody's rating A3) in a dedicated SPV, Arjan Trade SPV LLC. This structure is further supported by robust portfolio and financial covenants to optimise risk-adjusted return.

Robust Underwriting by Cicada Partners

The integrity and diligence of Cicada Partners are fundamental to the confidence in the Arjan Pool. Their rigorous underwriting process ensures that each loan meets the highest risk assessment standards. Atlendis leverages its strong track record and extensive expertise in managing credit risks to provide structuring solutions for transactions on the Atlendis platform.

Regulatory Compliance and KYC

Not KYC’ed yet? Please start your KYC here. 
Participation in the Arjan Pool requires lenders to complete a Know Your Customer (KYC) process, affirming our commitment to security and regulatory compliance. Atlendis adheres to Anti-Money Laundering and Counter-Terrorism Financing (AML-CT) regulations, ensuring that all financial activities uphold the best standards of legal and ethical conduct. This compliance framework not only protects our platform and its users but also strengthens the overall integrity of the investments.

Optimal Risk Management

Arjan Capital showcases a strong track record with zero defaults and minimal payment delays, illustrating robust unit economics and growth potential. The SPV structure includes multiple layers of protection, such as direct access to the originator’s trade blotter and stringent borrowing base criteria.

Strategic Benefits for Lenders

Participants in the Arjan Pool gain access to a niche, high-yielding market and enjoy additional rewards with Mode tokens through Mode’s innovative airdrop system. This airdrop system is part of Mode's broader incentive mechanisms, providing rewards for lenders' activities and contributions to the network. To help investors gauge potential returns, we have prepared mockup calculations to estimate the Annual Percentage Yield (APY). It's important to note that these are estimations based on current market conditions and assumptions, and actual results may vary. 

Inclusive Investing: Lower Thresholds, Broader Opportunities

Starting with an accessible minimum investment of just 100 USDC, we are committed to democratising access to institutional private credit markets. This lower entry barrier allows a broader range of investors to participate in opportunities traditionally reserved for larger institutional investors, aligning with our mission to open up institutional-grade investments to the investors globally

Future-Proof Investment

The Arjan Pool is structured as an evergreen facility, designed to enable the renewal and growth of the receivables borrowing base over time. This structure allows Arjan to scale its operations (size can go up to $50 mllion) by leveraging working capital from Atlendis. Lenders benefit from risk-managed origination and a more diversified borrowing base.

Conclusion

Atlendis is committed to leading the integration of decentralized finance solutions with traditional financial structures, and the Arjan Pool exemplifies this innovative approach.

Ready to explore the future of trade finance? Start your investment journey in the Arjan Pool today, and take part in redefining the financial landscape while enjoying reward airdrops on Mode Network.

To learn more about Arjan Capital and their story, check out their website here.