THELOGICALINDIAN - PRESS RELEASE Lendefi is a brandnew agreement aiming to accommodate opportunities such as lending and borrowing leveraging and investing
Lendefi is an avant-garde second-generation DeFi lending agreement that allows lenders to acquire absorption on stablecoin deposits, and for borrowers to access undercollateralized loans (UCLs) to advance in accepted agenda assets.
The capital advantage of Lendefi is the achievability of undercollateralized loans, acceptation you can borrow added than the accessory (serving as a blazon of security) you provide. Existing lending protocols, for their part, acquiesce overcollateralized loans, acceptation users are bound to beneath than the amount of the accessory back borrowing. The archetype scenarios beneath illustrates the difference.
• Undercollateralized: You can accommodate accessory account 50,000 USD and borrow addition asset account added than 50,000 USD.
• Overcollateralized: You can accommodate accessory account 50,000 USD and borrow addition asset account beneath than 50,000 USD.
With undercollateralized lending, the borrower can advantage their accessible basic while advancing advance opportunities that would ahead accept been above reach. Clearly, this will accomplish agenda assets added arresting to investors acclimatized to accessing such mechanisms in acceptable markets.
Lendefi vs Compound
Undercollateralized borrowing actuality the primary point of alteration as compared to added lending protocols, the apparatus of ensuring both parties’ assurance is different. While Compound allows loaned assets to be withdrawn, and appropriately requires overcollateralization to assure the lender from default, Lendefi keeps the accessory escrowed aural the protocol.
While the absorption amount offered by Compound is variable, Lendefi provides a anchored amount for borrowers and keeps it capricious for lenders. Absorption ante will be adapted periodically by the DAO. Because the costs for borrowing are predictable, and appropriately easier to accommodate into accident administration processes or barter calculations than capricious rates, borrowers are acceptable to acquisition Lendefi attractive.
Interoperability
The interoperability of Compound and Lendefi gives users the advantage to borrow with a advanced ambit of assets. For example, a borrower could advance Compound to access an overcollateralized accommodation for USDC application BAT as collateral, again use USDC on Lendefi to booty out an under-collateralized accommodation to advance in wBTC. This interoperability may become deployed as a third-generation agreement itself.
Similarities
While the apparatus of ensuring assurance amid borrowers and lenders varies amid Compound and Lendefi, they are based on the aforementioned babyminding attempt and brake to accepted assets.
Governance model
Both protocols are absolute by a decentralized free alignment (DAO) which enables complete association and stakeholder ascendancy of the protocol.
Restricted to accepted agenda assets
Both protocols are belted to accepted agenda assets. In the case of Lendefi, the alternative is based on Uniswap liquidity, and added agenda assets can be added as per the accommodation of the Lendefi DAO, as with Compound’s DAO.
Lendefi is a game-changer
Every agreement provides altered use cases. By enabling lenders to acquire absorption on stablecoin deposits, and giving borrowers admission to adorable undercollateralized loans, Lendefi can accomplish a above burst in a rapidly accretion industry.
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