The modern capitalist financial system relies on two core pillars to drive economic growth: a medium of exchange & credit. While stablecoins have convincingly delivered on the former over the past 10 years, DeFi growth remains constricted by the absence of a capital-efficient mechanism for extending credit against the future. To truly become the internet-native financial system - free from bank liquidity - a cryptonative credit primitive must emerge.

In our whitepaper, we outline a plan to deliver the first scalable credit-based money market that can extend general-purpose uncollateralized lines of credit. There is a reason why after 10 years it remains a largely unsolved problem - it lies at the intersection of protocol architecture, creditworthiness, quantitative risk modeling, law, digital identity, and game theory, all of which needs to align in order for this to even have a shot at working.

But we believe that in the end, it will have been worth it.

It is important to delineate the difference between overcollateralized vs. undercollateralized credit. Within DeFi, all prevailing forms of overcollateralization satisfy the following criteria:

(a) the value of pledged collateral exceeds the value of the loan

(b) the net orderly liquidation value (NOLV) of said collateral always exceeds the loan size

In the absence of legal recourse and a robust identity primitive in an anonymous and adversarial context, this is the only model that has scaled in DeFi to date. However, it only represents ~2% of all outstanding commercial debt in the form of Asset-Based Lending and Securities-Backed Lines of Credit within the broader 14.2t market in the United States.

Most forms of commercial debt are either entirely unsecured or senior-secured general liens underwritten against future cash flows and enterprise value. Traditional financiers have learned how to operate on the furthest end of the productivity curve and extend credit in a capital-efficient manner.

While overcollateralized lending protocols can trivially extend credit against Bitcoin, one of the most liquid assets in the world that trades 24/7, that model is nontransferable when applied to asset-light, revenue-generating businesses that are responsible for most of GDP growth. The most productive borrowers are the most difficult to price risk against.

In order to truly become the internet-native financial system, DeFi must become self-sufficient across all three credit products:

(a) asset-backed

(b) algo-backed

(c) future-backed

Overcollateralized lending protocols such as Aave and Morpho have clearly scaled (a), prime brokerages and CEXs have delivered (b) in the form of margin and productized with vehicles such as Ethena. (c) is fundamentally absent from the cryptoeconomy.

The most natural place to start is to expand capital access for all U.S.-based cryptonative entities operating on the furthest end of the productivity curve.

3Jane is a peer-to-pool credit-based money market enabling algorithmic, real-time uncollateralized USDC credit lines for yield farmers. Credit is underwritten against verifiable proofs of the entire universe of DeFi & bank assets, future cash flows, and credit scores. This unlocks a three-dimensional collateral space within crypto financial markets by introducing future-backed credit alongside existing asset-backed loans.

Unlike traditional overcollateralized lending protocols which require locking up collateral, 3Jane extends unsecured lines of credit underwritten against a user's:

(a) total value verified across DeFi assets + Bank assets (via Plaid)

(b) offchain VantageScore 3.0 credit score (via zkTLS)

As a result, 3Jane can extend credit lines against more exotic and productive asset types at a much faster velocity and with less overhead by assessing a user's entire DeFi portfolio + creditworthiness rather than treating each position as isolated margin.

Once fully live, 3Jane will have visibility across 50+ broad (see appendix) cryptonative asset classes with coverage across 10,000+ DeFi protocols totalling $250b+ in DeFi and crypto assets.

This not only unlocks significant capital efficiency and credit limits for existing asset-rich entities, but more importantly it lays the foundation for enabling high productivity asset-light entities to access credit against their cash flows, creating a self-sustaining cycle of economic expansion native to the Ethereum network.

Default Game Theory

Jane operates a credit slashing module executes three strategies for deterring defaults:

(a) score slashing (future pricing): defaults reduce the 3Jane Score, which shrinks future credit limits and raises implied APY, making strategic default economically unattractive.

(b) pooled upside for merchants: a portion of late repayments from defaulters is distributed pro-rata across all existing merchants.

(c) escalating recourse: initiate in-house collections and if necessary trigger a non-performing credit line (NPCL) auction which engages collections agencies to pursue U.S. legal remedies consistent with applicable law. Read more.

Early Credit Lines

-$6m in credit lines deployed in September in a revolving securitization across 52 yield farmers backed by $90m in total value verified (tvv) across DeFi assets

- 115K avg credit line size

- 9.55% average backing ratio across the 3Jane credit book, weighted by outstanding credit line size

- 778/850 average VantageScore 3.0 across the 3Jane credit book, weighted by outstanding credit line size. Evaluates to a prime/superprime credit profile

- ~10% supply APY

Our ~10% supply APY is the return on productive use of capital - credit that funds farming, hedging, LP, and basis strategies - rather than collateral warehousing. That profile is consistent with how spreads clear offchain: asset-based loans price to collateral and tend to sit near SOFR + ~180 bps, while cash-flow/direct-lending facilities price to execution risk and future capacity at roughly SOFR + ~500 bps, a ~300 bps premium over ABL. The program’s controls - verified capacity/backing-ratio bands, early delinquency markdowns, and NPCL recourse - are intended to keep expected loss = inside that premium, so net yield for suppliers lands in the high single to low double digits without relying on liquidation mechanics.

At 3Jane we deeply believe that short of a mass-extinction event, at the current rate of financial innovation, a significant % of the financial primitives that will dominate 100 years from now have not been invented yet or will not exist in their current form-factor. To put things into perspective - index funds, ETFs, interest rate/credit default/currency swaps, structured securitizations, junk bonds, Bitcoin, and Ethereum were all invented in the past 50 years, more than 3,000+ years after Hammurabi’s Code.

It has also become clear that permissionless capital formation means niche or innovative financial products can form rapidly on crypto rails. Starting points we’re excited about:

(a) insurance - the emergence of cryptonative, capital-efficient insurance primitives driven by restaking. Historically, DeFi insurance has failed to take off due to heavy concentration risk across smart contract hacks which have binary payouts. Today, insurance protocols can leverage the same $ to back multiple, imperfectly correlated risks (correlation < 1) such as 3Jane CDS, Cap protocol operator CDS, cat bonds, and custody insurance (ex: BitGo + Anchorage) and generate significant native yield on ETH.

(b) liquidation lender-of-last resort - users can tap into 3Jane credit lines to atomically save themselves from liquidation due to price movement or idiosyncratic risks such as depegs.

(c) financializing reputation, social capital, and credit scores - while 3Jane’s product is extending unsecured credit lines, we have effectively established sybil-resistant identities in the process via Plaid that can be leveraged across other socialfi primitives.

(d) algostables - low-volatility money that promises scale and censorship resistance in return is possible: see Pinto. We believe that unsecured credit can be repurposed to stabilize monetary policy, at least at the start.

DeFi’s true potential as the internet-native financial system lies in its ability to empower a new class of internet-native economic actors: AI agents.

If a) AI agents become integral to all economic workflows in traditional finance to reduce costs, b) they are granted autonomy to execute directives that maximize value for their owners, and c) DeFi rails do truly provide superior programmability, liquidity, cost efficiency, and settlement speed, then it stands to reason that d) AI agents will eventually converge on crypto rails for all financial use-cases. As a result, it is only a matter of time before all future economic activity within the lightcone settles on crypto infrastructure.

Mainnet live early November. Supplying into USD3 & sUSD3 is permissionless. Initially, funding will only be available to U.S. Residents with >$150K in total value verified.

Borrow against the future.

Cryptonative asset-class broad taxonomy:

[t0]: Stables, Majors, Alts. >$250b mkt cap across +10,000 protocols. ex: ETH, WBTC, AAVE, HYPE, ENA, PUMP, USDC, USDe[t1]: Staking. >$100b tvl across +250 protocols. ex: native ETH staking, stETH @lidofinance , stkAAVE, sENA, kHYPE, stSYRUP, vlCVX, veAERO

[t2] Restaking. $30b tvl across +45 protocols. ex: eigenlayer, symbiotic, etherfi

[t3] CDP & Money Markets. $90b tvl across +750 protocols. ex: maker, aave, euler

[t4]: DEX LP. >$30b tvl across +1750 protocols. ex: uniswap, curve finance

[t5]: Derivatives DEX LP. $20b tvl across +30 protocols. ex: HLP, LLP

[t6]: Farm & Aggregators. $10b tvl across +1000 protocols. ex: Yearn, Convex

[t7]: RWA. $15b tvl across +100 protocols. ex: Securitize, Superstate

[t8]: Yield Swaps. $13b tvl across +5 protocols. ex: Pendle, Spectra

[t9]: Options Selling Vaults. $100m tvl across +50 protocols. ex: Ribbon, Rysk

[t10]: NFT's. Non-fungible tokens representing beauty. Ex: Schizoposters, Milady

The modern capitalist financial system relies on two core pillars to drive economic growth: a medium of exchange & credit. While stablecoins have convincingly delivered on the former over the past 10 years, DeFi growth remains constricted by the absence of a capital-efficient mechanism for extending credit against the future. To truly become the internet-native financial system - free from bank liquidity - a cryptonative credit primitive must emerge.

In our whitepaper, we outline a plan to deliver the first scalable credit-based money market that can extend general-purpose uncollateralized lines of credit. There is a reason why after 10 years it remains a largely unsolved problem - it lies at the intersection of protocol architecture, creditworthiness, quantitative risk modeling, law, digital identity, and game theory, all of which needs to align in order for this to even have a shot at working.

But we believe that in the end, it will have been worth it.

It is important to delineate the difference between overcollateralized vs. undercollateralized credit. Within DeFi, all prevailing forms of overcollateralization satisfy the following criteria:

(a) the value of pledged collateral exceeds the value of the loan

(b) the net orderly liquidation value (NOLV) of said collateral always exceeds the loan size

In the absence of legal recourse and a robust identity primitive in an anonymous and adversarial context, this is the only model that has scaled in DeFi to date. However, it only represents ~2% of all outstanding commercial debt in the form of Asset-Based Lending and Securities-Backed Lines of Credit within the broader 14.2t market in the United States.

Most forms of commercial debt are either entirely unsecured or senior-secured general liens underwritten against future cash flows and enterprise value. Traditional financiers have learned how to operate on the furthest end of the productivity curve and extend credit in a capital-efficient manner.

While overcollateralized lending protocols can trivially extend credit against Bitcoin, one of the most liquid assets in the world that trades 24/7, that model is nontransferable when applied to asset-light, revenue-generating businesses that are responsible for most of GDP growth. The most productive borrowers are the most difficult to price risk against.

In order to truly become the internet-native financial system, DeFi must become self-sufficient across all three credit products:

(a) asset-backed

(b) algo-backed

(c) future-backed

Overcollateralized lending protocols such as Aave and Morpho have clearly scaled (a), prime brokerages and CEXs have delivered (b) in the form of margin and productized with vehicles such as Ethena. (c) is fundamentally absent from the cryptoeconomy.

The most natural place to start is to expand capital access for all U.S.-based cryptonative entities operating on the furthest end of the productivity curve.

3Jane is a peer-to-pool credit-based money market enabling algorithmic, real-time uncollateralized USDC credit lines for yield farmers. Credit is underwritten against verifiable proofs of the entire universe of DeFi & bank assets, future cash flows, and credit scores. This unlocks a three-dimensional collateral space within crypto financial markets by introducing future-backed credit alongside existing asset-backed loans.

Unlike traditional overcollateralized lending protocols which require locking up collateral, 3Jane extends unsecured lines of credit underwritten against a user's:

(a) total value verified across DeFi assets + Bank assets (via Plaid)

(b) offchain VantageScore 3.0 credit score (via zkTLS)

As a result, 3Jane can extend credit lines against more exotic and productive asset types at a much faster velocity and with less overhead by assessing a user's entire DeFi portfolio + creditworthiness rather than treating each position as isolated margin.

Once fully live, 3Jane will have visibility across 50+ broad (see appendix) cryptonative asset classes with coverage across 10,000+ DeFi protocols totalling $250b+ in DeFi and crypto assets.

This not only unlocks significant capital efficiency and credit limits for existing asset-rich entities, but more importantly it lays the foundation for enabling high productivity asset-light entities to access credit against their cash flows, creating a self-sustaining cycle of economic expansion native to the Ethereum network.

Default Game Theory

Jane operates a credit slashing module executes three strategies for deterring defaults:

(a) score slashing (future pricing): defaults reduce the 3Jane Score, which shrinks future credit limits and raises implied APY, making strategic default economically unattractive.

(b) pooled upside for merchants: a portion of late repayments from defaulters is distributed pro-rata across all existing merchants.

(c) escalating recourse: initiate in-house collections and if necessary trigger a non-performing credit line (NPCL) auction which engages collections agencies to pursue U.S. legal remedies consistent with applicable law. Read more.

Early Credit Lines

-$6m in credit lines deployed in September in a revolving securitization across 52 yield farmers backed by $90m in total value verified (tvv) across DeFi assets

- 115K avg credit line size

- 9.55% average backing ratio across the 3Jane credit book, weighted by outstanding credit line size

- 778/850 average VantageScore 3.0 across the 3Jane credit book, weighted by outstanding credit line size. Evaluates to a prime/superprime credit profile

- ~10% supply APY

Our ~10% supply APY is the return on productive use of capital - credit that funds farming, hedging, LP, and basis strategies - rather than collateral warehousing. That profile is consistent with how spreads clear offchain: asset-based loans price to collateral and tend to sit near SOFR + ~180 bps, while cash-flow/direct-lending facilities price to execution risk and future capacity at roughly SOFR + ~500 bps, a ~300 bps premium over ABL. The program’s controls - verified capacity/backing-ratio bands, early delinquency markdowns, and NPCL recourse - are intended to keep expected loss = inside that premium, so net yield for suppliers lands in the high single to low double digits without relying on liquidation mechanics.

At 3Jane we deeply believe that short of a mass-extinction event, at the current rate of financial innovation, a significant % of the financial primitives that will dominate 100 years from now have not been invented yet or will not exist in their current form-factor. To put things into perspective - index funds, ETFs, interest rate/credit default/currency swaps, structured securitizations, junk bonds, Bitcoin, and Ethereum were all invented in the past 50 years, more than 3,000+ years after Hammurabi’s Code.

It has also become clear that permissionless capital formation means niche or innovative financial products can form rapidly on crypto rails. Starting points we’re excited about:

(a) insurance - the emergence of cryptonative, capital-efficient insurance primitives driven by restaking. Historically, DeFi insurance has failed to take off due to heavy concentration risk across smart contract hacks which have binary payouts. Today, insurance protocols can leverage the same $ to back multiple, imperfectly correlated risks (correlation < 1) such as 3Jane CDS, Cap protocol operator CDS, cat bonds, and custody insurance (ex: BitGo + Anchorage) and generate significant native yield on ETH.

(b) liquidation lender-of-last resort - users can tap into 3Jane credit lines to atomically save themselves from liquidation due to price movement or idiosyncratic risks such as depegs.

(c) financializing reputation, social capital, and credit scores - while 3Jane’s product is extending unsecured credit lines, we have effectively established sybil-resistant identities in the process via Plaid that can be leveraged across other socialfi primitives.

(d) algostables - low-volatility money that promises scale and censorship resistance in return is possible: see Pinto. We believe that unsecured credit can be repurposed to stabilize monetary policy, at least at the start.

DeFi’s true potential as the internet-native financial system lies in its ability to empower a new class of internet-native economic actors: AI agents.

If a) AI agents become integral to all economic workflows in traditional finance to reduce costs, b) they are granted autonomy to execute directives that maximize value for their owners, and c) DeFi rails do truly provide superior programmability, liquidity, cost efficiency, and settlement speed, then it stands to reason that d) AI agents will eventually converge on crypto rails for all financial use-cases. As a result, it is only a matter of time before all future economic activity within the lightcone settles on crypto infrastructure.

Mainnet live early November. Supplying into USD3 & sUSD3 is permissionless. Initially, funding will only be available to U.S. Residents with >$150K in total value verified.

Borrow against the future.

Cryptonative asset-class broad taxonomy:

[t0]: Stables, Majors, Alts. >$250b mkt cap across +10,000 protocols. ex: ETH, WBTC, AAVE, HYPE, ENA, PUMP, USDC, USDe[t1]: Staking. >$100b tvl across +250 protocols. ex: native ETH staking, stETH @lidofinance , stkAAVE, sENA, kHYPE, stSYRUP, vlCVX, veAERO

[t2] Restaking. $30b tvl across +45 protocols. ex: eigenlayer, symbiotic, etherfi

[t3] CDP & Money Markets. $90b tvl across +750 protocols. ex: maker, aave, euler

[t4]: DEX LP. >$30b tvl across +1750 protocols. ex: uniswap, curve finance

[t5]: Derivatives DEX LP. $20b tvl across +30 protocols. ex: HLP, LLP

[t6]: Farm & Aggregators. $10b tvl across +1000 protocols. ex: Yearn, Convex

[t7]: RWA. $15b tvl across +100 protocols. ex: Securitize, Superstate

[t8]: Yield Swaps. $13b tvl across +5 protocols. ex: Pendle, Spectra

[t9]: Options Selling Vaults. $100m tvl across +50 protocols. ex: Ribbon, Rysk

[t10]: NFT's. Non-fungible tokens representing beauty. Ex: Schizoposters, Milady