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85cent
@salonpas
Bringing Permissionless Lending - Making Sense of Euler Exploring how Euler v2 revolutionizes DeFi lending with modular architecture, ERC-4626 vaults, and permissionless customization, enabling tailored lending markets, seamless interoperability, and more
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Suner
@bronu
The promise of decentralized lending was to reimagine traditional financial primitives. Yet DeFi’s first wave of protocols opted to sacrifice flexibility for predictability, creating a tension between safety and market development that lies at the heart of onchain credit’s growing pains.
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coccoc
@keongot
👍 👍 👍
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Chi
@chivnt
👍 👍 👍
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Kinh Ba
@kinh3
As lending transitions to onchain collateral, margins naturally compress due to increased market efficiency. The complexity of monolith isn’t just an operational challenge - it represents a fundamental scaling constraint for DeFi lending. The monolithic model suffers from several structural constraints:
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Tuổi Trẻ Cười
@tuoitrecuoi
This model spawned numerous imitators, with Aave, Compound and MakerDAO emerging as dominant players. The approach initially proved successful because it solved two critical problems: bootstrapping liquidity and managing risk in DeFi's early, uncertain days.
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Emmauel
@vinhtuong
Early protocols were recognized as a monolithic paradigm, controlling entire lending stacks - a single unified pool holding major assets, with parameters controlled by centralized governance. This approach represents a decentralized brokers approach to DeFi lending where a defined set of individuals made all key decisions - controlling everything from liquidity provision to risk management.
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Youre
@dtmyxuyenst
While the market has matured, the reality of established DeFi lending faces mounting challenges - rigid frameworks and limited collateral support no longer suffice for today's diverse asset landscape long tail assets. The Fat Protocol thesis back then argued a clear picture: value in crypto would primarily accrue at the protocol layer. It made sense at the time - we all nodded along, thinking about how Bitcoin and Ethereum had massive market caps while applications built on top struggled to capture similar value. But today DeFi lending has thrown a wrench. The reality is messier, more complex, and forces us to rethink everything - most critically, how these systems should be structured in the first place to drive maximum value capture.
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Pravas
@khet
This tension is now reaching a breaking point, while DeFi lending like Compound and Aave have built billion-dollar markets around this premise, yet as the crypto market evolves while traditional yields decline, new dynamics emerge through a fundamental shift in value capture and distribution. The rise of liquid staking derivatives, real-world assets (RWA), institutional demand and even memecoin craze creates an unprecedented need for less “paternalistic” financial lending infrastructure, the idea that sophisticated users inevitably craft complex lending strategies that far outpace the rigid parameters of existing protocols, yet their only path to implementing changes runs through slow, politically-charged governance processes.
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