Future Developments

The Earn Network's future plans on how to enhance the Lending product even more.

Curved slope allocation limits

In order to prevent large players from taking full allocations in a pool, but at the same time allow the pool to be filled as fast as possible, we would implement curved slope allocation limits. As time passes by, larger allocations can take place. The main objective of this mechanism would be to allow many participants to take advantage of popular pools (that are fixed in size).

Opposite exposure tokens

In order to prevent the liquidations, delta neutral strategies will be available for the tokens that will be used as collateral. A very simple example would be to balace your WETH with an equal but opposite position/token/option.

Collateral tokens boosting the yield

A Lender, upon investing, and a Borrower, upon the moment of pool creation, can agree to utilise the collateral for a predefined DeFi strategy. In this scenario, such collateral will not be sitting idle (and securing the loan) but also will be generating extra yield.

Receive yield in the EARN token

Lenders will have a choice to select the interest to be paid in a native token or the EARN token. By selecting the EARN token, a user will receive sligthly higher yield (the EARN Network platform will discount the comission).

Auto-investing

A Lender is able to set the thresholds (bids range) and other parameters to have funds auto-invest among all the available pools. In such scenario, the user won't need to actively scout through the marketplace to find suitable offers. This would resolve the fragmented liqudity issue and help borrowers with setting market grounded interest rates.

Undercollateralised Lending

With the help of tools such us Credora, we would enable certain parties to engage in undercollateralised lending. As of Q2 2023, we feel that time is not yet ripe to prioritise this feature considering the existing landscape of collateralised lending opportunities.