What's the future development direction and mode of DeFi Lending?

[Sophia20200918]

In my opinion, at present, lending protocol such as Compound only  allows  highly liquid assets, such as ETH, to be mortgaged. In fact, this kind of collateral can also be borrowed by others as liquidity assets. For example, people who deposit BAT can borrow the ETH deposited by the others, or even someone may deposit usdc to borrow ETH for special purposes. Therefore, the liquidity of compound is super abundant, there is no "waste" assets, and the internal efficiency of the system is very high, so it is difficult for compound to add low liquidity assets as collateral.

High liquidity assets can be realized at any time, or even used as the base currency to purchase other assets. Therefore, using this kind of asset as collateral reduces the investor's own liquidity (because the pledge rate is generally 70%+x%, which is obviously smaller than the original asset). Therefore, this kind of investor seems not the real liquidity demander, but a arbitrageur who makes circular pledge based on token price rising logic. For the whole market,  the overall liquidity has shrunk and the risk has increased, which is an unhealthy mode in fact.

The significance of Defi lending service should be an advanced liquidity system, which can create maximum value by finding and providing liquidity to those who need liquidity.

Long term -- the possibility of pledge of high quality assets in reality: AAVE, makerdao are trying in this way.
Medium term -- the possibility of changing the mechanism of over collateralized.
Short term -- increase the possibility of more currency launching on lending platform as collaterals.

Cheese bank will release how we solve these problems, come faster than AAVE and try to do better than compound. Please wait and see~

[tycsols]

I think the whole defi scenario is at the very start and in future we will see more and more products.
Defi projects have to come up with easy and user friendly platforms for everyone to use.
More and more banking, financial and savings products will also bring more people to the defi market .
I think there is a long way for defi projects to go from here and at the same time there is huge potential as well.

[Francis Freeman]

I think most of the DEFI projects are solely concentrating on staking ,locking up the coins create a supply crunch and pushing the price high. I am not saying all projects are doing this but projects doing this definitely need to evolve in the long term.

[CoinSmash]

What are the different way lenders use funds?  In order to get low slippage stablecoin trading like CRV/Curve.. but what about other platforms?

[livingfree]

I think most of the DEFI projects are solely concentrating on staking ,locking up the coins create a supply crunch and pushing the price high. I am not saying all projects are doing this but projects doing this definitely need to evolve in the long term.

They do, because you know why?

It retains the value and the market cap. if there's a locked in period for most assets, the investors can't just remove it out of the economy of that token.

It's a brilliant move for those developers but them, they are free to get in and out anytime they want to.

[CoinSmash]

Most of the DeFi project are locking their token for a certain period of time that reduces currently trading token amount and push the price up. Also farming and staking or adding token in the liquidity pool became much more common and requirements for the DeFi project. Recently many DEX came with these features. Another DeFi lending project CRV token price fall despite low supply. It looks like the future of DeFi is still uncertain.

CRV's supply is pretty high and they're working to bring in new mechanisms to drop inflation.  It's 2M per day, 776,000 to users.. it's a lot.

They just brought in buying up CRV from the open market with admin fees from their LPs though, and that's chewing up 60 - 70% of daily inflation right now.  It started a few days back.

[specumining]

Rethink what you know about Defi its still a baby 

While most protocols offer partial solutions that don’t fit together or scale, Verus’ whole system build offers fundamental advances woven into the protocol layer that create an interoperable-blockchain DeFi network.

Currency Launches with Fractional Reserve Option:

Front-Running Resistant Protocol:

No Fluctuating Gas Fees:

Interoperable Blockchain Bridges:

Verus is the next generation DeFi enabled platform, which was designed as a scalable, secure, public network with privacy built-in. Verus was fairly launched with no ICO, no pre-mine, with advance mining notice on the BitcoinTalk forum, and no development fee or other rent-seeking taxes. Verus offers recoverable friendly name identities, and unique smart transactions to ease the development of applications and services. In addition to these capabilities, which are available today using the Verus Desktop GUI application for Windows, Mac, and Linux platforms, Verus is testing its upcoming release that supports unlimited tokenization of assets. It is a truly free, decentralized protocol and a rent-free blockchain framework that provides chain interoperability that can scale to the world. Once on mainnet, the Verus DeFi system will be a fractal, market-driven, and completely liquid worldwide network of independently valued currencies and protocol-based currency baskets.