According to The Block, Friktion, the Solana ecological portfolio management platform, launched encrypted lending products to DeFi institutional customers, which will provide borrowers with undercollateralized loans, that is, this type of loan does not require borrowers to provide loans equal to or greater than the value of the loan. Collateral, “Third-party underwriters will conduct due diligence on borrowers before launching a loan pool.” Friktion's loan product will consist of a pool of installments from junior to senior tranches, with the junior tranche offering high annualized yields of 11% to 17% in exchange for senior lenders being insulated from loan defaults. The loan pool will also feature a diverse set of borrowers to reduce counterparty risk, with lenders in the senior pool earning an annualized rate of return of 8% to 10%.