Overview
Concrete is a DeFi protocol that aims to improve the efficiency and security of on-chain debt and credit markets. By providing automated liquidation protection for borrowers and optimized yield strategies for liquidity providers, Concrete seeks to address key challenges in decentralized finance. The protocol operates as an appchain, enabling seamless integration with various blockchain environments.
Key Features
Liquidation Protection
Concrete offers borrowers automated liquidation protection through its proprietary quantitative framework. As a borrower’s position approaches the liquidation threshold, Concrete injects credit in multiple tranches to prevent liquidation. Each tranche requires a small claim fee. If the position continues toward liquidation after all tranches are utilized, Concrete will close the position, recoup the owed amount, and return any residual assets to the borrower.
Optimized Yield Strategies
Liquidity providers can deposit assets into Concrete’s Earn Vaults, powered by the ERC-4626 tokenized vault standard. These vaults implement curated, risk-adjusted strategies to maximize returns. Depositors receive yield-bearing tokens, denoted as ct[assets], representing their deposits and entitling them to revenues generated by the vaults. Additionally, these tokens can be locked for boosted annual percentage yields (APYs) and greater rewards within the Concrete ecosystem.
Modular Smart Contract Architecture
Concrete employs a modular smart contract architecture to enhance flexibility and security. The protocol is divided into distinct tiers—Protocol, Modules, Blueprints, and Actions—each responsible for specific functionalities. This design allows for individual components to be updated or replaced without disrupting the overall system.
Quantitative Framework
To support its services, Concrete has developed a quantitative framework that leverages advanced quantitative techniques to forecast digital asset prices and assess downside risks. This framework informs the protocol’s decision-making processes, particularly in providing liquidation protection and optimizing yield strategies.
Ecosystem Integration
Concrete is designed to integrate seamlessly with various blockchain environments, including Ethereum Virtual Machine (EVM) and Solana Virtual Machine (SVM). This cross-chain compatibility enables Concrete to collaborate with multiple money markets and lenders, offering its services across different platforms.
Funding and Development
In February 2024, Blueprint Finance, the developer of Concrete, secured $7.5 million in funding to support the development of the protocol. The financing round was led by Hashed and Tribe Capital, with participation from other investors. This funding aims to enhance on-chain debt and credit solutions within the DeFi space.
