Improving on the pooled lending model
Most lending protocols use pools to create liquid markets for borrowers and lenders. While this is great for generalized asset based lending, it isn't suited to credit-based lending where lenders want to have decision making power over who/what they're taking risks on.
It also disadvantages borrowers because they all have the same terms and conditions despite differences in collateral, business model, debt structure, etc.
The lack of differentiation between lenders and borrowers is also antithetical to a Cryptonative Credit Marketplace.
We want lenders to
- offer the possibility for borrowers to be able to construct a deal that best fits their needs
- be able to price the risk of these custom deals according to their own methodologies
This leads to a variety of options for borrowers and lenders and the ability to match with each other based on their individual preferences.
Rather than pool-to-pool or pool-to-peer, we strongly believe that a direct lending model, DAO to DAO, peer-to-peer and whatever other variation on this theme is the way forward.