Bridging TradFi and DeFi: HINC Fund Integrates with Solana Lending
A significant step in asset tokenization is underway. Securitize's tokenized high-yield credit fund, HINC, is now available as collateral on the Solana-based lending protocol, Loopscale. This integration provides accredited investors with a novel method to leverage their traditional finance holdings within the DeFi ecosystem.
Unlocking Liquidity Without Selling
The key innovation lies in functionality. Investors can now use their HINC fund shares as collateral to borrow USDG stablecoins directly on Loopscale. This process does not require redeeming or selling the underlying fund positions, allowing investors to maintain exposure to the fund's portfolio of high-yield corporate bonds and CLO tranches while accessing liquidity.
Fund Profile and Risk Management Framework
The HINC fund, with Neuberger Berman as sub-advisor, focuses on high-yield and structured credit assets. It is available to accredited investors with a minimum subscription of $100,000. To ensure protocol safety, the fund's net asset value (NAV) is updated daily on-chain by oracle provider RedStone. Loopscale uses this price feed to value the collateral and manage liquidation risks.
Important Note: Using such assets as collateral involves risks, including potential liquidation if the collateral value falls below required thresholds.
Loopscale's Expanding Collateral Universe
This is not Loopscale's first foray into real-world assets (RWA). The protocol already supports other tokenized assets like ACRED and SECZ as collateral. Adding HINC represents a strategic move to diversify its collateral base and attract a broader user base from traditional finance.
Currently, Loopscale reports a Total Value Locked (TVL) of approximately $91.3 million, with active loans amounting to $55.9 million. The integration of HINC is poised to contribute to further growth in both metrics.