Galaxy Digital Launches On-Chain Lending Program for Institutions
Galaxy Digital has launched a new on-chain lending program for institutions, called GOFR, which aggregates liquidity from protocols such as Aave, Morpho, and Kamino to provide a single borrowing rate. This simplifies DeFi borrowing for institutions, which previously had to navigate multiple protocols and rates. The program also comes with up to $100 million of Galaxy's own capital as first-loss protection, designed to absorb losses before client funds are drawn.
The GOFR rate is published daily on Galaxy's site, providing a new reference point for on-chain credit costs. This rate is based on the variable financing rates across the protocols, which are blended into one continuously rebalanced rate. Clients can borrow directly from Galaxy at this optimized rate, without having to manage wallets or sign smart contracts.
'Institutions have been clear: the opportunity in on-chain credit is real, but the infrastructure required to access it directly isn't something they want to build or own,' said Max Bareiss, Galaxy's Head of Lending.