Launch of Paddle Finance on BeraChain: Provision of liquidity services for assets often overlooked by standard protocols
Hey there, let's talk about Paddle Finance, the game-changer in the DeFi world that's bringing liquidity to assets that have been typically underserved by most protocols.
While the majority of DeFi platforms are after popular categories like blue-chip tokens, staking protocols, and liquid stablecoins, a hidden world of asset activity is thriving behind the scenes. People hold NFTs, LP tokens, memecoins, and tokenized real-world assets in their wallets, but these often go unused due to a lack of platforms built to support them.
That's where Paddle Finance comes in — a lending and trading protocol designed to unlock liquidity from non-standard assets. It operates on Base and Berachain, where things are heating up. Berachain alone has already amassed an impressive $2.69 billion in TVL. While others are making a beeline for volume in familiar categories, Paddle Finance is all about helping users get the most out of what they already own.
Berachain stands out with its Proof of Liquidity (PoL) model, rewarding protocols based on genuine on-chain activity rather than passive staking. This makes it an ideal environment for asset movement and user engagement, and it has become a hub for NFTs, especially among the degen communities. With projects like Steady Teddys, Bullas, Mibera, and Yeet already utilizing PaddleFi for borrowing, OTC trading, and community liquidity programs, it's clear that this partnership is benefiting both parties.
On a technical level, Berachain is Ethereum-compatible, making deployment a breeze, but its real value comes from supporting platforms like PaddleFi that focus on assets outside the ERC-20 standard. This alignment supports community-driven, organic asset growth rather than top-down design.
So, what does PaddleFi actually do? Most DeFi platforms are built around standard tokens, but NFTs now hold real value, and memecoins have strong communities. PaddleFi is designed to cater to these assets, offering NFT lending via peer-to-peer and instant loan models, trustless OTC trading for NFTs, RWAs, and tokens without centralized platforms, and basket collateral for bundling multiple assets into one loan or trade. This provides users with flexibility without the need to sell or split assets, offering access to groups typically left out of DeFi, including collectors and small token holders.
As of now, PaddleFi's traction is solid, with over $2.55 million in assets locked across its contracts. In April alone, the protocol processed over $3 million in volume, signaling strong growth in lending and OTC functions. This activity isn't driven by the general DeFi crowd but by NFT-native and degen communities on Berachain, who use "middle-class" NFTs, meme tokens, and early-stage RWAs with strong engagement but low market caps.
In summary, PaddleFi is bridging the gap in Berachain's ecosystem, connecting overlooked assets like NFTs and RWAs to functional tools. This allows NFT holders to borrow without selling, RWAs to access capital without centralized approval, and smaller tokens to be traded directly without formal markets. As Berachain scales, PaddleFi is well-positioned to deepen its reach, with the upcoming launch of NFT-backed money markets set to provide new opportunities for collections to tap into DeFi, with PaddleFi playing a key role. The future of DeFi is looking fast, flexible, and designed for assets that don't fit the traditional mold but still deserve a place in the ecosystem.
- Paddle Finance, a game-changer in DeFi, aims to unlock liquidity from assets often overlooked by standard protocols.
- People hold various assets, such as NFTs and LP tokens, in their wallets, but lack platforms to utilize them effectively.
- Paddle Finance operates on Base and Berachain, where Berachain has amassed an impressive $2.69 billion in TVL.
- Berachain's Proof of Liquidity model rewards protocols based on genuine on-chain activity, making it ideal for asset movement and user engagement.
- Projects like Steady Teddys, Bullas, Mibera, and Yeet are already utilizing PaddleFi for borrowing, OTC trading, and community liquidity programs.
- Being Ethereum-compatible, Berachain allows for smooth deployment of platforms like PaddleFi focused on assets outside the ERC-20 standard.
- PaddleFi offers NFT lending via peer-to-peer and instant loan models, trustless OTC trading for NFTs, RWAs, and tokens, and basket collateral for bundling assets.
- As of now, over $2.55 million in assets are locked across PaddleFi's contracts, with April alone seeing over $3 million in volume.
- NFT-native and degen communities on Berachain, who use "middle-class" NFTs, meme tokens, and early-stage RWAs with strong engagement but low market caps, drive the activity on PaddleFi.
- The upcoming launch of NFT-backed money markets on Berachain will provide new opportunities for collections to tap into DeFi, with PaddleFi playing a key role, deepening its reach in the ecosystem.
