In June 2023, Atlendis Labs introduced the pioneering Karmen pool, marking a significant venture into the Revenue Based Financing market alongside a prominent participant. This inaugural loan cycle proved successful, validating the viability of integrating traditional borrowers with DeFi, offering distinct advantages such as enhanced flexibility and more cost-effective structuring.

As Atlendis Labs and Karmen prepare for their next collaborative endeavor, Karmen pool will be winding down after the mid-October repayment.

Reflecting on Karmen’s Inaugural Pool

Established in 2021, Karmen swiftly carved its niche in the Revenue Based Financing market for French SMBs. This financing method entails companies receiving instant capital from Karmen in exchange for a share of their future revenues. Along with fixed loan repayments, companies can also choose to reimburse investors with a percentage of their sales until reaching a predetermined cap. It's a favored option for businesses with variable & seasonal revenue streams seeking growth without relying on equity funding.

Employing their innovative approach, driven by a unique technological foundation and robust underwriting engine, Karmen successfully secured a $50 million credit line from prestigious investors like Fasanara Capital, further expanding their reach into the French market.

Given the accelerating demand for their credit solutions , Karmen perpetually seeks additional sources of financing, making Atlendis’ offering an ideal match. Through its smart contract pools, Atlendis provided Karmen with instant access to DeFi capital at reduced costs, aligning with Karmen's short-term capital requirements.

Launched in June 2023, Karmen pool served as a proof of concept, demonstrating the feasibility and promise of integrating traditional finance with DeFi. The pool swiftly reached its $100,000 USDC ceiling, with the first loan disbursed just one week after its opening on June 21, 2023.

Upon converting the funds to fiat, Karmen utilized them to fund its SME loans, consistent with its approach to other financing sources. This affirmed the hypothesis that bridging traditional finance and DeFi is not only feasible but also holds immense potential for the future.

What's on the Horizon

Karmen's initial loan is set to mature in mid-October, with repayment anticipated between the 17th and 19th of the month. Currently, Karmen is collaborating closely with Atlendis Labs to build up on their partnership, with news expected towards the end of Q4 2023.

For this reason, once Karmen concludes its repayment, the existing pool will be closed.

An essential aspect of Karmen's repayment plan involves the utilization of Atlendis Flow’s offering to facilitate the on-ramping of funds and loan repayment. Atlendis Flow, a sister company of Atlendis Labs, specializes in providing institutional and traditional borrowers with easy access to blockchain services without necessitating in-house capabilities. Atlendis Flow assists clients in their interaction with DeFi protocols, maintains custody of funds, and facilitates the seamless conversion of stablecoins to fiat. Notably, Atlendis Flow secured DASP registration from the French AMF in July 2023, subjecting it to stringent compliance and anti-money laundering obligations.

Come mid-October, Atlendis Flow will play a pivotal role in facilitating Karmen's loan repayment, receiving fiat payments, and managing the off-ramping and interaction with the Atlendis protocol's Karmen pool.

Following this repayment, lenders whose positions were matched will be able to withdraw their funds from the pool, along with the accrued interest provided by Karmen.

Conclusion

This initial loan marks a significant milestone for the Atlendis protocol, as it steadily progresses toward its ultimate goal of bridging the gap between traditional finance and DeFi. Further structural enhancements are required to advance the collaboration, and we will keep you informed of our progress. Atlendis Flow's inaugural transaction represents a significant stride for the Atlendis protocol, heralding numerous future opportunities with similar configurations. Stay tuned for more Real World Asset opportunities on Atlendis!