Despite growing to over $1B today's DeFi lending apps favor lenders significantly more than borrowers. And the "lending", some would say it's nothing but a bad form of margin trading rather than actual lending because, intuitively, "lending" makes very little sense if you have to overcollateralize. And they would be right for the most part — defi is really inefficient today, and to an outsider the overcollateralization is just weird. But it is still lending (a form that predates crypto by centuries) and the fact is: these inefficiencies exist for a reason, and they won't vanish overnight by simply wishing it so. Which brings us to...Yield. Yield is a P2P lending dapp that, while it retains the above inefficiencies, pushes the limits of overcollateralization to make it more favorable to borrowers. But what sets Yield apart from the rest of the market is that it compensates borrowers for putting up with the inefficiencies, similar to how lenders are already compensated with interest. Every borrower that successfully manages a loan to term on the platform will be eligible to claim a proportionate amount of YLD tokens that they're free to hodl and access available utilities, or sell for — if they're acting in their best interests — more than their total expenses. The mid to long term goal is to then transition that mechanism into an incentive that powers what some would call the holy-grail — a P2P, undercollateralized lending marketplace with no funky DAOs, KYC, community you need approval from, or some-such, completely tipping lender–borrower scale back to balance. Just you and the protocol.There's no ICO, IEO, DAICO, VC, startup/company, etc. behind this and that arguably has its downsides — wen Biananca? — but also its upsides — all the value generated goes back into the ecosystem/users. It's a dapp by a bunch of crypto enthusiasts executing on an idea from 2017 that never saw the light of the day. The token, an initial supply will simply be distributed. So if you're mildly intrigued, feel free to read more about Yield here.
Submitted March 08, 2020 at 02:53AM
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