Offchain Lending
DeFi was born around the concept of trustless lending and full automation. “You don’t have to trust your counterparty because they have enough collateral at the ready and smart contracts won’t allow them to pull they capital illegitimately”.
This worked well for the peer-to-peer model but it a) restricts scaling as only onchain assets can serve as collateral and b) it requires over-collateralisation (like a mortgage) meaning it’s not capital efficient for professional investors.
Solution? A blockchain protocol which can facilitate lending from the blockchain into the real world without requiring for the collateral to be locked up into smart contracts. Maple Finance is a pioneer in this sector, please enjoy our discussion here!
Re7 Capital - DeFi treasury management for stablecoins and ETH