Paddle Finance Launches on Berachain, Unlocks $2.55M in Non-Standard Assets

Paddle Finance, a lending and trading protocol, has launched on Berachain, focusing on unlocking liquidity from non-standard assets that are often overlooked by other DeFi protocols. While many DeFi platforms concentrate on blue-chip tokens, staking protocols, and liquid stablecoins, Paddle Finance aims to support a broader range of assets, including NFTs, LP tokens, meme coins, and tokenized real-world assets.

Berachain's Proof of Liquidity (PoL) model, which rewards protocols for real on-chain activity rather than passive staking, aligns well with Paddle Finance's focus on asset movement and user interaction. This model has attracted a fast-growing NFT ecosystem on Berachain, with projects like Steady Teddys, Bullas, Mibera, and Yeet drawing in active participants. These NFT collections are already being utilized within PaddleFi for borrowing, OTC trading, and community-focused liquidity programs.

Technically, Berachain uses Ethereum-compatible tools, which lowers friction for deployment. However, what sets it apart is its alignment with platforms like PaddleFi that serve assets outside the ERC-20 standard. These assets often emerge organically from community-driven culture rather than top-down design, making Berachain an ideal environment for Paddle Finance's operations.

Paddle Finance offers several innovative features designed to support non-standard assets. These include NFT lending through peer-to-peer and instant loan models, trustless OTC trading for NFTs, RWAs, and tokens without the need for centralized platforms or brokers, and basket collateral for multiple assets to be packaged into a single loan or trade. This structure provides users with more flexibility, allowing them to utilize their assets without selling or splitting them up. It also creates access for groups that are often left out, such as collectors, small token holders, and early-stage RWA participants.

Paddle Finance has already shown significant traction on multichain, with over $2.55 million in assets locked across its contracts. In April alone, it processed more than $3 million in volume, with growing usage in lending and OTC functions. This activity is driven by NFT-native and degen communities on Berachain, who are utilizing "middle-class" NFTs, low-float meme tokens, and in-development real-world asset projects that are experimenting with early liquidity.

Berachain already hosts protocols that cover the basics, such as Kodiak for swaps, Infrared for staking, and Honey for stablecoin liquidity. However, there has been a gap in supporting assets that do not fit into these categories. Paddle Finance fills this gap by connecting overlooked assets like NFTs and RWAs to usable tools. NFT holders can borrow without selling, RWA investors can access capital without waiting for centralized approval, and smaller tokens can be traded directly without needing a formal market.

Paddle Finance does not aim to replace other dApps; instead, it adds functionality around asset types that are usually ignored. In a chain like Berachain, where liquidity is high but fragmented, Paddle Finance helps bring more of that capital into circulation. The protocol is well-positioned to go deeper as Berachain scales quickly and its PoL model rewards real usage. The upcoming launch of NFT-backed money markets will give collections another way to tap into DeFi building blocks, with protocols like PaddleFi playing a key role in making this possible.

Paddle Finance's approach to supporting a wide range of assets reflects a broader trend in the DeFi space. As the definition of "on-chain assets" continues to expand, platforms that support the long tail of assets, rather than just the top tokens, will be the ones that grow alongside the space. Paddle Finance is betting that the future of DeFi will not just be about liquidity, but also about how many types of assets can be made liquid. This combination of infrastructure and community alignment is proving durable and offers a glimpse into what the next phase of DeFi infrastructure might look like: fast, flexible, and built for assets that do not follow a template but still belong in the same system.