Anvil

Anvil is an Ethereum-based DeFi protocol whose core business is providing a universal collateral layer that lets users collateralize digital assets and issue on-chain letters of credit (LOCs) to designated beneficiaries. Collateral is locked in a vault and redeemable by the beneficiary on demand, while the creator retains custody and yield—no borrowing, no interest. It supports both same-asset and cross-asset collateralization, as well as shared collateral pools for multiple accounts.

Its core competitiveness lies in separating collateral from debt: the collateral backs a claim rather than a loan, making credit a programmable, reusable primitive. Traditional secured credit is constrained by high verification and enforcement costs, and while DeFi made money programmable, collateral remains trapped in protocol-specific silos. Anvil addresses this through a unified collateral layer.

Recent development (March–September 2026): In May 2026, it launched an institutional product at Consensus 2026 for bulk LOC management; in June, it was accepted into the Ethereum Security Subsidy Program; in August, it demonstrated a collateralized BNPL solution at the Blockchain Futurist Conference, with multiple companies adopting its "Promise Now, Pay Later" solution. As of August, TVL stood at approximately $10M, down from a July 2025 peak of 36,000 ETH (~$109M).

The protocol remains early-stage with relatively low TVL, and its token supply is large—80 billion circulating against 100 billion total—raising inflation concerns.