Seamless Protocol, a collaboration across decentralized finance developers, launches on Base for non-custodial liquidity markets.
Undercollateralized borrowing isn't something new in the crypto space. Protocols such as Maple Finance offer capital to institutional and qualified investors via undercollateralized products. The process, however, requires a combination of off-chain and on-chain steps, meaning the user seeking capital will have terms negotiated with Maple’s team before a loan is issued on-chain.
“Many borrowers already know the purpose of the additional liquidity they seek, so Integrated Borrowing Strategies simply connects these steps together. Because the Borrowing Strategies are on-chain in smart contracts, the Liquidity Suppliers have full visibility into how the funds are used,” the protocol explained regarding its core strategy.
General purpose loans — such as personal loans that can be used for a variety of situations — are also integrated into the protocol, but are governed by the usual DeFi lending rules that require overcollateralization. Seamless believes its solution is a better fit for DeFi than on-chain reputation scores or on-chain identities, such as
. “[...] the only way to create conditions for undercollateralized borrowing would be within rails of a smart contract to smart contract system, which brings us back to the fundamentals of crypto and DeFi ,” a Seamless contributor said.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Mission: Impossible - Ghost Protocol (2011)The fifth film in the franchise, Mission: Impossible - Rogue Nation, is an action-thriller film that takes place after the events of Ghost Protocol and continues following former IMF agent Ethan Hunt and his crew. With the IMF disbanded and the crew now rogue agents, they decide to take the fight to the terrorist organization known as the Syndicate. This opposing rogue operation has recruited other agents worldwide to engage in black-ops terrorist actions, and Ethan's crew intends to shut them down.
Read more »
Glass Protocol's Founders to Walk Away Due to Lacking Demand for Video NFTsThe founders said the protocol will remain free and accessible to all creators.
Read more »
XRPL Protocol Tipped as Alternative to Lightning Network, Here's WhyBitcoin's Lightning Network losing steam, and Spend the Bits is being proposed as viable alternative
Read more »
Mountain Protocol launches yield-bearing stablecoin, announces fundraiseMountain Protocol is launching what it says is the first nationally-regulated, yield-bearing stablecoin called UDSM.
Read more »
Arrest of Dodgers’ Julio Urías shakes team’s Latino fan baseCheers for the sports hero from Mexico turn to disappointment after his second arrest on suspicion of domestic violence.
Read more »
Iceland’s Highland Base Wants to Bring Adventure to Your Luxe VacationThe new base camp in Kerlingarfjöll swaps TVs for views of the country’s otherworldly natural beauty.
Read more »