Amidst the fast-evolving landscape of decentralized finance (DeFi), the lending sector has been notably slow-moving due to the prominent design of complex multi-asset lending pools and protocol decisions being driven completely through governance.
In this report, we explore the potential of a new category of modular lending products, unravelling their features, mechanism design and try to understand the implications for a wide variety of DeFi products that can be powered by these primitives.