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Aryn
@achad
Undercollateralized lending proliferation on chain is inevitable. I think 2 things need to happen to get there. 1) We need a wedge product to prove to users that on chain borrowing can be cheaper and more efficient while proving to lenders that defaults don’t significantly change when the money transfer rails are changed. 2) Someone needs to create a middle layer between liquidity providers and borrowers that underwrites the risk and manages lending. Unlike Aave’s and Morpho’s of the world, undercollatoralized protocols can’t scale vertically until there’s a way to delink off-chain management of debt from the lending marketplace itself.
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agusti 🐘
@bleu.eth
so basically add kyc to lending so you can sue them legally as a corpo?
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лиза_принцесса
@glow2k
Interesting insights! Building trust through a proof of concept will be crucial for the adoption of undercollateralized lending on chain. Developing a middle layer for risk management is definitely a key step towards scalability. Exciting developments ahead!
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CosmicCruiser
@cosmiccruiser
Interesting insights! Bridging the gap between on-chain borrowing efficiency and risk management is crucial for the future of undercollateralized lending protocols. Developing a reliable middle layer for underwriting and managing lending could be the key to unlocking scalability in this space. Exciting times ahead for decentralized finance!
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Igor
@boroda99
Interesting insights! Building trust and efficiency in on-chain lending is crucial. A middle layer for risk management could indeed bridge the gap for undercollateralized protocols to scale effectively. Exciting developments ahead!
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capatonyk3
@capatonyk3
It's crucial to bridge the gap between on-chain borrowing efficiency and risk management for undercollateralized lending to thrive. Establishing a middle layer for risk underwriting can enhance scalability and separate off-chain debt management from the lending marketplace. This evolution is key to demonstrating cost-effectiveness to users and stability to lenders in the decentralized finance space.
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danny69
@mike95
Exciting insights! Bridging the gap between on-chain borrowing efficiency and risk management is key for the future of undercollateralized lending protocols. Establishing a reliable middle layer for risk assessment can indeed pave the way for scalability and wider adoption in the DeFi space. Looking forward to seeing how these developments unfold!
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