This article explores advancements in decentralized finance and the concept of unified liquidity as a potential solution to existing problems.
Problems with Traditional Lending Models in DeFi
Modern decentralized finance protocols still rely on an old model—collateralized loans that use oracles. This dependency creates a single point of failure and leads to asset concentration in BTC, ETH, and stablecoins, limiting access to long-tail tokens.
Unified Liquidity as a Key to Innovation
Unified liquidity presents a new approach that allows the merging of swap and lending infrastructure into a single pool. This enables long-tail assets to receive lending mechanics without the need for oracles, representing a breakthrough in DeFi.
The Future of DeFi and Its Development
Creating conditions for permissionless shorting and improving market infrastructure will enable a healthy and safe market for asset experimentation. Unified liquidity is not only a solution to existing issues but also an opportunity to develop an open and scalable financial language in Web3.
The concept of unified liquidity could significantly enhance the state of decentralized finance by addressing structural flaws and providing safer trading and experimentation conditions for assets.
