DeFi Lending 2.0
The distinguishing features of Augmented Finance
Trends:
  • DeFi is becoming multi-chain
  • Long tail of fungible and non-fungible assets for lending and borrowing (new growing projects, interest-bearing and staked tokens, NFTs)
  • Protocol owned liquidity & assets Capital efficiency (max yield generation, max borrowing power)
  • Protocol efficiency (low tx costs)
DeFi is becoming multi-chain
Merging the liquidity across all AF instances on various chains into one liquidity pool. Users will be able to supply and borrow simultaneously on various chains. Layer-0 DeFi protocol, cross-chain compatibility.
Long tail of fungible and non-fungible assets for lending and borrowing
Helping users put emerging digital assets and NFTs to work as collateral while maintaining exposure to their long-term value.
Protocol owned liquidity & assets Renting liquidity & assets -> Owning liquidity & assets.
The protocol issues bonds to acquire assets and use them for lending pools and DEX liquidity pools. Staking function which pays users in additional governance tokens in exchange for locking their tokens up -- to counteract the sell pressure which comes from users’ ability to get governance tokens at a discount with bonds.
Capital efficiency
Allowing borrowers to extract the highest borrowing power out of their collateral. Categorize assets into categories and allow users who supply assets in a given category to be able to borrow assets in the same category with higher collateral factor and lower liquidation penalty. Dynamic interest rates to drive optimal utilization.
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