The market has been experiencing recent volatile coin prices and quiet trading. Just when everyone thought that lying flat in a bear market was the only way out, traditional financial giant BlackRock quietly accelerated its DeFi layout, trying to make money on the chain.
At present, the TVL of DeFi is about 100 billion US dollars. The number seems large, but the development of the industry is limited. Lending protocols such as Aave and Compound are all old problems, and the collateral ratio is ridiculously high! You have to take out a lot of assets to pledge before you can borrow some money. The result is often that the more you borrow, the poorer you become. Once the leverage is opened, the position will be liquidated. The capital efficiency is far inferior to traditional finance.
In other words, everyone is playing a rich mans game. It is difficult for ordinary users to borrow efficiently, and the growth ceiling of DeFi is becoming more and more obvious. 3 Jane does not take the usual path and directly introduces a new way of playing credit lending. The project has received strategic support from Coinbase, and well-known financial technology companies such as Plaid and Credit Karma are also behind it to help integrate off-chain data and ensure compliance. Technical partners Lagrange, Reclaim, CRED and EigenLayer have also joined the team, making 3 Janes layout in the DeFi field more stable, and its development potential cannot be underestimated.
DeFi credit lending no longer crushes your wallet
3 Jane does not follow the traditional DeFi platforms deposit 100 and borrow 50 approach, but instead lends you money based on your credit data, with loan approval being done by an off-chain algorithm. How do you verify your credit? On-chain assets, bank deposits, future income, credit scores, etc. can all be used. As long as there is no problem with the verification, you can directly borrow USDC, without collateral, and you can borrow and use it anytime.
3 Janes technical architecture makes it impossible for you to escape
But some people may ask: Isnt this just a loan without collateral and run away competition? Dont worry, 3 Jane is not a sucker. It uses zero-knowledge technology (zkTLS) to connect on-chain and off-chain credit data to ensure that every borrower has undergone an accurate credit assessment and only loans are issued if they are qualified. The providers of funds are depositors, who deposit USDC to mint 3 Janes native stablecoin US D3 or sUS D3 and bear a specific amount of credit risk.
3 Jane uses CredProtocol and BlockchainBureau to evaluate your on-chain credit, comprehensively analyze the lending, liquidation, currency holding, exchange interaction and other behaviors on the EVM chain, and determine whether you are a high-quality user or a high-risk player. These scoring systems have been widely used in the DeFi field, and their risk identification capabilities are relatively reliable.
In addition to the on-chain records, 3 Jane can also obtain your Transunion, Equifax credit scores and CreditKarma records (such as credit card usage, overdue history) through ReclaimProtocol and EigenLayer, but it will not affect your credit inquiry record, and you do not need to provide SSN. This makes your borrowing credit more comprehensive, not just looking at the on-chain data.
3 Jane uses an on-chain + off-chain dual credit system to ensure that loans are issued to truly trustworthy users, rather than borrow and run players.
What if someone really defaults? 3 Jane uses Plaid to bind the users bank account data to the Ethereum address, providing minimal personal information. The bank data is encrypted throughout the process and can be deleted after repayment. Or if you default, 3 Jane will auction the bad loans directly on the chain and let the US debt collection agency take over. Ethereum smart contracts ensure the permanent and credible commitment of off-chain debt collection and leave an unalterable record of default. This mechanism increases the success rate of recovery.
How to repay?
3 Janes repayment rules are much more flexible than traditional loans. You only need to pay the minimum amount every month, and the calculation method is also very special - it will take the lower of two methods: if your on-chain off-chain assets plus cash flow have increased compared to when you borrowed, then repay the increased value. If the asset performance is not ideal, then repay according to the principal repayment ratio + interest set by 3 Jane. As long as your financial situation is stable, you will not be burdened with debts that you cannot repay due to market fluctuations.
If your assets fall, 3 Jane may have considered this risk when lending. But if you fail to repay the loan within the grace period, you will enter the arrears period, during which there will be additional late payment interest.
Summary in one sentence: The repayment method is flexible, but there is no escape if you default on your debt!
Founders Insights on the Future
3 Jane was founded by @_yakovsky, who worked at RibbonFinance (later merged into Aevo) for three years. He initially joined as a smart contract engineer, then turned to growth strategy, and left in April 2024 to start building 3 Jane. There is currently little information about the rest of the teams background.
Initially, 3 Jane planned to be built on the Base network, but the latest white paper only mentions Ethereum, perhaps due to liquidity and ecosystem maturity considerations. @_yakovsky tweeted that unsecured loans are the key to DeFi going mainstream. If Ethereum wants to become a true Internet native financial system, it must get rid of its dependence on bank liquidity and use future value rather than existing assets to support the lending market. This concept has also been recognized by Circle co-founder Jeremy Allaire, bringing more attention to 3 Jane in the DeFi field.
Although 3 Jane is still in its early stages and there is little information about the team, its combination of credit lending + on-chain stablecoins + off-chain recovery shows great potential to reshape the DeFi ecosystem. Whether it is the concept of its founder @_yakovsky or the recognition of Circle co-founder JeremyAllaire, it shows that the market is looking forward to the track of unsecured DeFi lending.
But in the end, can 3 Jane really run this model? Can the credit system of DeFi lending stand the test of the market? Or is this just another highlight attempt in the crypto market? Only time will tell.
