Documentation
Documentation
An open letter
On the only honest way to lend money on a blockchain
Borrow at
0%
We built Stormbit because every other protocol asked us to subsidize their bad underwriting. We hold BTC. We hold ETH. We have spent years paying three, five, eight percent on Aave and on Morpho for the privilege of keeping our own collateral on-chain. We have watched lenders chase yield they could not price. We have watched Cream die. We have watched Mango die. We have watched UST take a generation of believers with it.
Every cycle, the same mechanic. The protocol opens a loan and discovers the risk later. Liquidations are not features. They are confessions — admissions, at the worst possible moment, that the loan should never have opened at the size it did. Aave does not underwrite. Morpho does not underwrite. Compound does not underwrite. They queue. They take your collateral, they hand you USDC, and they cross their fingers that the oracle holds and the keepers wake up in time.
This is a category error. Lending is not deposits and rates. Lending is underwriting.
A loan is a sold put against the collateral. Always was. A sold put without a written hedge is a position waiting to be marked. TradFi figured this out fifty years ago. Goldman's Private Wealth Structuring desk has been writing loans this way since 1995. JPMorgan, UBS, Morgan Stanley — every prime broker on earth runs credit the same way. The hedge precedes the principal. The risk is priced the day the loan opens. There are no surprises in November.
DeFi skipped the step. We are putting it back.
When you deposit BTC or ETH, Stormbit writes a collar against your collateral on Deribit before any USDC moves. A put leg below your strike. A call leg above. The premium is collected upfront. That premium funds your loan in full.
You pay nothing. Zero percent, fixed for the entire term. The lender earns the premium as defined-yield underwriting income — insurance economics, not floating APR. The protocol takes a small fee for writing the contract. Every cashflow is named the day the loan opens. There is no utilization curve, no governance vote, no silent liquidation queue, no oracle gap. There is a contract, a hedge, and a number you signed for.
Only BTC and ETH. We will not accept what we cannot underwrite, and Deribit is the only options venue with the liquidity to write contracts of this size. That is not a limitation. It is the discipline. Every protocol that has died in this market died because it accepted collateral it could not hedge. We are choosing to not die.
If you are paying interest on a BTC-backed loan today, you are paying for someone else's lack of discipline. Come pay zero.
This is not a money market. It is not a yield farm. It is the oldest credit primitive in finance, rebuilt as code, opened to anyone with a wallet and a thesis. We think it is the only honest way to lend money on a blockchain. We think the rails get written once. We think it is us.
The door is open.
— Who this is for —
If you hold BTC or ETH and need USDC, you have four ways out.
Sell
Pay the tax, lose the future upside, done forever.
Money markets
3-8% variable, oracle-priced liquidation, rate can spike overnight.
Covered call on Deribit
Write the call yourself, lock the premium in a CEX, manage strikes by hand, KYC.
Stormbit
0% APR, downside floored, on-chain, two clicks.
We bundle the call you would have written and the put you would have bought into a single USDC loan. The premium funds it. You pay nothing in interest. The only thing you give up is upside above the call strike you choose, over the term you choose. If you were going to be hedged anyway, you are getting the loan for free.
If you are deploying that USDC into Pendle, Ethena, or any farm yielding above five percent, the rate cut on the borrow side is the entire trade. A 0 % cost of capital on a 15 % yield is fifty percent more carry than a 5 % cost on the same yield. The lender writes the contract once, the loan opens at zero, and the math compounds in your direction for the full term.
7 / 14 / 30 day terms · BTC or ETH collateral · USDC out
Borrow now
Want to walk through a position first?
Contact us
If you would rather earn the premium than pay it
Underwrite a loan here
Documentation
Documentation
X/Twitter
Telegram
© Stormbit Labs Pte. Ltd. — Singapore
Documentation
Documentation
An open letter
On the only honest way to lend money on a blockchain
Borrow at
0%
We built Stormbit because every other protocol asked us to subsidize their bad underwriting. We hold BTC. We hold ETH. We have spent years paying three, five, eight percent on Aave and on Morpho for the privilege of keeping our own collateral on-chain. We have watched lenders chase yield they could not price. We have watched Cream die. We have watched Mango die. We have watched UST take a generation of believers with it.
Every cycle, the same mechanic. The protocol opens a loan and discovers the risk later. Liquidations are not features. They are confessions — admissions, at the worst possible moment, that the loan should never have opened at the size it did. Aave does not underwrite. Morpho does not underwrite. Compound does not underwrite. They queue. They take your collateral, they hand you USDC, and they cross their fingers that the oracle holds and the keepers wake up in time.
This is a category error. Lending is not deposits and rates. Lending is underwriting.
A loan is a sold put against the collateral. Always was. A sold put without a written hedge is a position waiting to be marked. TradFi figured this out fifty years ago. Goldman's Private Wealth Structuring desk has been writing loans this way since 1995. JPMorgan, UBS, Morgan Stanley — every prime broker on earth runs credit the same way. The hedge precedes the principal. The risk is priced the day the loan opens. There are no surprises in November.
DeFi skipped the step. We are putting it back.
When you deposit BTC or ETH, Stormbit writes a collar against your collateral on Deribit before any USDC moves. A put leg below your strike. A call leg above. The premium is collected upfront. That premium funds your loan in full.
You pay nothing. Zero percent, fixed for the entire term. The lender earns the premium as defined-yield underwriting income — insurance economics, not floating APR. The protocol takes a small fee for writing the contract. Every cashflow is named the day the loan opens. There is no utilization curve, no governance vote, no silent liquidation queue, no oracle gap. There is a contract, a hedge, and a number you signed for.
Only BTC and ETH. We will not accept what we cannot underwrite, and Deribit is the only options venue with the liquidity to write contracts of this size. That is not a limitation. It is the discipline. Every protocol that has died in this market died because it accepted collateral it could not hedge. We are choosing to not die.
If you are paying interest on a BTC-backed loan today, you are paying for someone else's lack of discipline. Come pay zero.
This is not a money market. It is not a yield farm. It is the oldest credit primitive in finance, rebuilt as code, opened to anyone with a wallet and a thesis. We think it is the only honest way to lend money on a blockchain. We think the rails get written once. We think it is us.
The door is open.
— Who this is for —
If you hold BTC or ETH and need USDC, you have four ways out.
Sell
Pay the tax, lose the future upside, done forever
Money markets
3-8% variable, oracle-priced liquidation,
rate can spike overnight
Covered call on Deribit
Write the call yourself, lock the premium in a CEX,
manage strikes by hand, KYC.
Stormbit
0% APR, downside floored, on-chain, two clicks
We bundle the call you would have written and the put you would have bought into a single USDC loan. The premium funds it. You pay nothing in interest. The only thing you give up is upside above the call strike you choose, over the term you choose. If you were going to be hedged anyway, you are getting the loan for free.
If you are deploying that USDC into Pendle, Ethena, or any farm yielding above five percent, the rate cut on the borrow side is the entire trade. A 0 % cost of capital on a 15 % yield is fifty percent more carry than a 5 % cost on the same yield. The lender writes the contract once, the loan opens at zero, and the math compounds in your direction for the full term.
7 / 14 / 30 day terms · BTC or ETH collateral · USDC out
Borrow now
Want to walk through a position first?
Contact us
If you would rather earn the premium than pay it
Underwrite a loan here
© Stormbit Labs Pte. Ltd. — Singapore
Documentation
Documentation
X/Twitter
Telegram