About a year ago I wrote about the potential of Modular lending in DeFi and how it would disrupt governance...driven lending markets....They call it “lending restaking,” and it’s as clever as it is simple....Aave, Compound, and Morpho represent the first major iteration of DeFi lending markets.

Attempts at undercollateralized lending have been made, from peer-to-peer vouching to delegate-based...lending desks....What Makes Undercollateralized Lending Possible?...Without this alignment, undercollateralized lending becomes a honeypot for bad actors....That’s just the nature of lending.

Users can deposit capital in specific hardware lending vaults to have control over their backing and...USDai is made up of Liquid Credit Tokens (LCTs), which are issued from hardware-backed lending pools...This model is similar to the Morpho lending structure, which sees whitelisted entities such as Steakhouse...

Large-scale onchain lending was pioneered, and for years dominated, by protocols like Aave....Its success proved that crypto yield was real and that DeFi lending could reach institutional scale....Morpho wasn’t the first to explore modular lending....For more about Morpho and Euler, check out our Modular Lending report.

DeFi Lending Optimizer A ZEE can optimize lending strategies within DeFi platforms by deploying a network...Monitoring agents assess interest rates and lending terms across multiple chains, analysis agents evaluate...A multi-agent framework such as this allows lending strategies to be dynamically adjusted based on market...

BTCfi on Sui BTCfi has recently become an emerging niche on Sui, bringing lending, staking, and yield...integrated money market component designed to maximize capital efficiency by depositing idle liquidity into lending...By allowing unused funds to generate yield in lending markets while remaining accessible for trades,...

Router API: Finds optimal paths for DeFi operations (swaps, lending, farming, LPing) and returns executable...These specialized developers craft elegant execution paths for fundamental functions like lending, swapping...Developers create modular contract abstractions that represent specific DeFi actions (e.g., swapping, lending...

Lending markets on Thala have a total collateral base of about $15 mn; less than 1.5 mn MoveDollars (...Users earn Echo Points – redeemable for presumably a future airdrop – by bridging, staking, lending,...As one would expect, the vast majority of lending and borrowing activity is in stablecoins....Introducing modular lending primitives similar to Morpho Blue.

State of Lending in DeFi DeFi lending and borrowing protocols have seen a resurgence in activity, with...An Isolated lending pool refers to a lending market between just 2 assets – one collateral and one borrowable...While the legacy lending protocols are permissionless as any user can participate in their lending markets...

...s biggest wins so far have been in finance: store of value assets, stablecoins for payments, swaps, lending...Imagine markets for spot trading, perps, peer-to-peer lending, prediction markets, options, and more....They can set up a custom vault with a predicate that says, “Only lend to the top four lending protocols...

...are numerous projects either live today or set to launch over the coming weeks/months: HyperLend: A lending...HypurrFi: A money market protocol providing lending and borrowing services on HyperEVM....Keiko Finance: Another money market protocol enabling capital efficiency through lending and borrowing...

...make an impact in the real world in prior years, discussing opportunities with undercollateralized lending...Exactly finance is a lending protocol on Optimism that allows anyone to turn their Gen 2 card into a...New Credit Primitives – 3Jane 3Jane is a new credit-based undercollateralized lending market on Base,...across lending and swapping markets.

Users can deposit stablecoins into Drift’s lending markets through the Drift integration, automatically...dashboards into comprehensive banking solutions – offering payments, interest-bearing accounts, and lending...As DeFAI agents evolve to execute sophisticated trading strategies, from specialized lending to optimal...

Morpho Blue is a trustless platform containing immutable, isolated lending markets....Isolated lending markets are really powerful because they silo the risk of each collateral asset....They also have core vaults, which are built on top of Morpho, for more isolated lending pools.

Maple Finance was a successful undercollateralized lending project from last cycle....Maple Finance has reemerged with Maple 2.0, introducing Syrup, a permissionless institutional lending...The biggest change with Syrup is the shift to secured lending....Maple has shifted its focus to this area, leaving behind the undercollateralized lending niche.

Babylon staking and Lombard Lux while allowing holders to deploy their tokens in DeFi protocols for lending...

...banks, hoard risk-free collateral, and break the link between short-term liabilities and productive lending...But unlike a traditional bank, the issuer never sells that Treasury to fund new lending or rotate into...When the Fed raises interest rates, bank lending tightens, deposit rates adjust, and credit conditions...But stablecoin issuers are non-lending entities.

Outside of Hyperliquid’s top lending and borrowing markets—HyperLend ($300M TVL) and HypurrFi ($170M)...Hyperliquid and offers two key primitives: CDP markets (feUSD) Vanilla markets (built on Morpho’s lending...Vanilla Markets: Asset-Native Borrowing Felix also offers Vanilla lending markets, built on Morpho’s...

In its 2024 report, EY-Parthenon highlighted that connections to LPs (52%) and borrowing and lending...

Here’s a snapshot of the top names in the network (full list): Echelon: A lending protocol distributing...Inertia: Another lending protocol where users can supply or borrow INIT or sINIT....You can take the hands-off route by depositing into one of the lending protocols and checking in every...