Overview

Category Status: 🟠 In Progress, ETA: End of Q2 '24

Please note that the details in this category may change before releasing it live.

The Lending category opens enormous opportunities to structure nearly unlimited types of loans. The community is able to select any asset supported by the blockchain, set their own repayment schedule, APR, collateral composition and much more.

Overview

1. An open lending ecosystem - a decentralized marketplace - brings relief for many Borrowers, such that they are not at the mercy of a lending bank, lengthy processes and complex requirements.

2. Lenders can finally reach a global audience to access capital very efficiently (low cost, much quicker than with TradFi).

3. Yield hunters (professional DeFi traders) can borrow funds to profit from yield arbitrage opportunities across various ecosystems. Many people constantly look for new ways and places to earn yield. Easy access to lenders can help them materialise those opportunities: provide interest for lenders and claim a fee for themselves.

4. Collateral protects repayments. Pool creators (Borrowers) must overcollateralize the pool with allowed asssets. Multiple tokens (including derivatives, LP share tokens...) can be used to collateralise the loan and derisk the volatility.

5. Helping SMEs in emerging countries. As the data shows, many businesses from emerging countries lack proper rails for borrowing, even in a TradeFi world. Our solution can become a far superior tool to access capital (cheaper, faster, easier to use, available 24/7, etc...).

6. We do aim to disrupt a massive lending market with our approach. We believe that for the very first time in history this is possible with the use of blockchain technology.

7. Major focus throughout the years 2023 - 2024 will be dedicated on over-collateralised lending. Considering the current developments in the crypto space and beyond, in relation to derivatives, tokenised investments and leveraged tokens give enough room to excel this part of Lending further.