Introducing OctoLend

OctoLend is a curated lending market on Stellar that enables fixed-rate, fixed-term borrowing through a novel put–call design for the debt token, bringing predictability to on-chain institutional credit markets. By introducing financial delegation, OctoLend allows third parties to stake and delegate RWAs or crypto collaterals - such as tokenized money-market funds or XLM - to back institutional borrowers. This structure bridges DeFi and traditional finance, providing stable yields, financial guarantee, and collateral management essential for institutional adoption of onchain lending.

OctoLend complements USDyc, the first vault product aggregating yield sources across Stellar. USDyc, live on Stellar mainnet and integrated natively on Freighter, acts as a main lender on OctoLend, enabling its liquidity providers to access secure, stable yields. An objective is to develop USDyc into a yield bearing stable coin, whose yields are originated by a network of originators with credible financial guarantees from collateral delegators.

We build OctoLend as a complementary protocol to the OctoVault which has been audited and live. OctoLend leverages the Stellar contract package by Open Zeppelin (latest release) thus likely to be among the first projects in production.

Deep dive into OctoLend with the working whitepaper here