Mainframe, a San Francisco, CA-based blockchain company operating a decentralized communication platform, acquired Sablier, a protocol for real-time finance on the Ethereum blockchain.
The amount of the deal was not disclosed.
Led by Doug Leonard, CEO, Mainframe has relaunched as Mainframe Lending Protocol, following its plans to integrate Sablier’s money streaming technology into a fixed-rate lending protocol and create tokenized debt markets to further the evolution of decentralized finance (DeFi). Paul Razvan Berg, the founder of Sablier, will join Mainframe as the head of development.
Mainframe proposes a novel zero-coupon bond system that allows borrowers to quickly offload debt for increased purchase power. Borrowers deposit collateral and mint tokens, representing a debt obligation. Lenders purchase the tokenized debt obligation, typically at a discount, and redeem them for face value at maturity. Individuals can also interact with the protocol as Guarantors, allowing them to pool assets to protect the system from becoming undercollateralized. Guarantors earn income from fees and purchase collateral at a discount when borrowers fail to satisfy the collateral requirement.