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GSR commits $100 million to new onchain credit business

GSR is committing $100 million to Hare, a new onchain vault business launching Aave-based stablecoin and tokenized-gold yield products with anchor liquidity.

Crypto Bulletin Newsroom 2 min read

GSR commits $100 million to new onchain credit business

Crypto trading firm GSR said on Oct. 7 it will commit $100 million to Hare, a new business building onchain credit vaults with liquidity platform Turtle. The multi-year commitment will mostly take the form of a credit facility, with GSR providing anchor liquidity before outside investors arrive, according to CoinDesk’s report on the launch.

What will Hare’s first vaults hold?

Hare will launch with two Aave-powered products, according to GSR’s announcement and interview with Hare CEO Connor Milner. Hare USD Earn will accept major dollar stablecoins in one vault, while Hare Gold Earn will let holders of Paxos tokenized gold products PAXG and PAXGy earn yield; Paxos Labs is partnering on the gold product.

GSR’s capital is intended to supply liquidity to the products from launch. Hare is being built alongside Turtle, which CoinDesk describes as a liquidity distribution platform.

How will Hare manage credit risk?

Hare says it will assess collateral, counterparties and how positions may behave under market stress. In the GSR interview, Milner said the business plans to stress-test scenarios in which many investors seek to withdraw at once and explain the resulting liquidity to investors.

Milner previously served as senior director at DeFi hedge fund Re7 Capital, CoinDesk reported. GSR’s commitment backs the new business as it begins offering yield on stablecoins and tokenized gold through lending markets.

Sources