- summary:
- Programmed lending markets allow the tail of long encryption assets that cannot be used in the common complexes that will be included in the customized markets.
The future of Onchain lending is already programmed. If the first wave of DEFI lending markets has brought simple double asset functions-deposit ETH and borrowing stables or vice versa-the next wave raises the tape significantly. One of the DEFi protocols era is to take advantage of the intercession in connection with smart contracts to perpetuate the new forces in assets used for lending purposes.
This is partly done in response to the spread of the new distinctive symbols that are now in Defi; The days when the distinguished symbols of ETH, governance symbols and Stablecoins were the only assets in the city. With more strange assets entering the battle, from RWAS to Pendle PTS, the range of what can be done with the distinctive symbols that are imprisoned in the lending protocols.
But not only the appearance of the new distinctive symbols that forced the lending platforms to raise the level of their game: it has provided the increasing competition, from central and decentralized sources, an incentive for the engineer more advanced. Everyone is looking for a sustainable return on Onchain. In programming advanced capacity in the assets of lending that works as a guarantee, Defi users can obtain their cakes and eat them, and enjoy the benefits of borrowing along with the additional return that their guarantees bring. Here is how it works.
Progressive primitive
The concept of programmed alternatives requires specific coding functions in the assets of Onchain. This means that they can perform the basic function of their Creator – such as maintaining a specific price or accumulation of accumulation – while using it for other Defi purposes such as trading or liquidity. In the concept of lending markets, this has a number of benefits.
Programmed lending markets add additional powers to the basic lending process. For one reason, it allows the tail of the long assets of encryption assets that cannot be used in the common complexes to be included in the custom markets. The lending platforms that include these assets can provide greater opportunities for users without increasing surface risks.
It also supports the use of relaxation assets for lending purposes, which is in line with DEFI’s broader narration to cancel more capital efficiency. One of the defects that suffer from lending in its current form is that the amount of capital that must be deposited as a guarantee must exceed 2: 1 borrowing amount. By programming specific features in the guaranteed symbols, Defi developers allow users to use a smarter of encryption.
For example, this means that it is possible to share the origins of the first layer like ETH, mint as a liquid symbol like Steth, then use it for borrowing. This is already a preferred option by professional institutions and trading companies, especially those who use Stream In central and decentralized lending platforms. Rewards can increase the rewards that can increase the value of the side over time, providing a solid basis to explore other DEFI opportunities with borrowed assets.
But this is just scratching the surface of what can be done with programmed assets in the lending markets. As a closer look at one platform in particular – Silo financing And its use of “hooks” – the offers, the future of the lending of Onchain is interconnected.
Progressive lending markets come from age
Silo has started life as a non -trustee Defi market that provides isolated lending pools, which was the basis of V1 protocol. It is a very successful model, and hundreds of millions of dollars accumulate TVL And facilitate decentralized lending and borrowing without an accident.
But V2 greatly raises the risks by introducing programmable lending markets, a solution designed to treat long -term shortcomings for ONSAIN lending. Basically, V2 allows customized lending solutions, supported by normative “hooks” that include the logic designated in individual markets. This reinforces the return and adds benefit to the basic assets while maintaining the isolation of the risk of signing a silo.
As a silo Explain In a blog post that defines its vision for V2, “hooks are smart contracts that provide the functions of the lending markets. For example, the lending market can take advantage of the hook contract to spread the inactive liquidity externally to improve the return of depositors.”
V2 spine, hooks are normative extensions that allow publishers to operate programming functions that extend to other Defi applications to improve the return, allowing fixed -term lending, or creating memo markets for organized assets. This flexibility stems from the use of the V2 of the ERC-4626 standard, allowing integration with third-party protocols and supporting inter-operating via EVM chains.
Built for Defi builders
Although probably hooks are actually unlimited, responsibility is on developers to dream of ways to use this job. Silo can suggest cases of use, but it leaves it for third -party developers to take advantage of this force the way it sees better. To accelerate this process, Silodao launches a motivational joint stock program that supports developers who seek to create a library of audited hooks.
In this way, Defi builders will be able to take advantage of the bank of safe hooks and chemicals that can be used in any number of genius methods. It remains to see the ideas of Devs, but it is clear that the programmable markets are ideal for improving the return by spreading capital on Dexs or other DAPPS. This has the ability to reduce borrowing costs through side rehabilitation.
The introduction of programmed lending markets has far -reaching effects on Defi lending in general, given that the cost’s capacity in the industry, based on open source code, means that innovation in one field tends to liquidate to other areas.
This innovation, as Silo V2, also refers to the growth of the symbol of the governance of fasting, which their holders use to vote on criteria such as spreading liquidity and cabinet management. With the distribution of revenues approximately $ 300,000 to the two shells of $ so far, the symbol plays a major role in forming programmed markets.
For developers, the understanding of SILO’s extractable lending markets opens opportunities to build innovative, isolated lending solutions, using hooks for everything from the returns dedicated to RWA markets. We are still early in the life -ending life cycle. But what is clear, even at this stage, is that it will redefine the onchain lending face, allowing all species to be used to use in lending, borrowing and other notebooks – simultaneously and safely.
