Tue. Sep 28th, 2021
DeFi, Free TON, Meetup

Jury activity

Vladislav begins the agenda with a question about the jury members’ activity. There are three days left to vote on Polkadot Bridge Stage 3. The passivity of jurors is alarming. If things continue in the same vein, they will have to be replaced.

How does lending work?

  • Collateralized Lending — you use your own assets as collateral;
  • Unsecured lending — requires much more infrastructure.

Centralized players:

  • Nexo — one of the biggest players. They even issue credit cards, but remain a centralized platform that requires passing KYC
  • BlockFi — a worthy competitor to Nexo. They were recently hacked and lost several million dollars. 
  • Celsius Network.

In 2019, the world faced the first decentralized protocols.

  • ETHLend — created the first smart contract ecosystem that served as the first decentralized collateralized borrowing and lending platform.

Lending protocols offer significantly better loan rates than their centralized counterparts.

Loans in Free TON

Loan services can be implemented in various ways.

  1. The easiest way is to copy the AAVE a or Compound mechanics and implement them in Free TON.
  2. Engage one of the market leaders and discuss with them the implementation mechanism in Free TON.
  3. Consider how such lending and borrowing protocols can be redesigned to benefit from the Free TON features (its fully decentralized nature, faster capital movement).

Anzor says that once DeFi is more developed in Free TON, once there are working DEXes, we can start implementing the first option. Anzor believes that although it takes more time than attracting market leaders, the second option needs someone who can explain why Free TON is a good solution for a lending service.

DeFi roadmap of Free TON ecosystem

At the moment, sub-governance is thinking about a DeFi roadmap, which includes all the steps. NFT is a different industry, however, it can be closely related to liquidity flow.

Anzor believes that an independent team is needed to be responsible for the roadmap updates. Vladislav suggests dividing this process into two groups: analytics of current trends and analytics of emerging trends. It can be used to build a longer-term roadmap for the DeFi system.

Oracle Contest Status

The Oracle contest is currently underway and will end on July 8th. A few weeks will be allotted for voting. Ignat believes that it is necessary to focus on creating financial instruments rather than building long-term development. He suggests starting with financial primitives, and only then planning long-term development.

Vladislav is uncertain they will receive a finished product by the end of the Oracle contest, because first it is necessary to integrate with this solution and understand the essence of work. He agrees that primitives are important, but Vladislav disagrees with focusing on just one solution. He suggests running a small contest for the loan architecture, paying attention to Free TON the features, by comparing it to Ethereum, for example. This will help gather ideas and choose the best architecture.

Oracle alternatives in borrowing-lending protocols

There is an alternative to put lenders at risk of undercollateralized assets. And it is a bad solution.

Ivan believes that loans are possible without oracles. You can always involve some third-party insurance company.

Vladislav suggests a small contest on the Free TON lending service to collect key ideas for implementation. The first stage of the loan protocol implementation will follow after that.