Comment on page
- 1.Pool-to-pool (Aave, Rari Fuse) are unable to provide optimised loan terms (high LTV, wide range of collateral assets, low interest rates, predictable interest rates) due to:
- 1.systemic risk of adding new assets as collateral.
- 2.large thresholds for safety for LTV, health factor, and liquidation penalties, liquidation game theory, and liquidator risk premiums especially during times of market volatility.
- 3.lenders prefer to have their loaned assets back, instead of claiming collateral.
- 2.Pool-to-pool has systemic risks brought on by adding new collateral assets.
- 3.Lending platforms are not generating enough fees for the platform owners.
- 4.Bluechip DeFi yields are currently low. New DeFi or bridge protocols have been exploited. Whale and institutional lenders are looking for low risk, moderate yield opportunities.
- 5.NFT P2P loan products are niche and limited addressable market due to asset base (bluechip NFTs, versus all ERC20s).