Aave

Maple

Arbitrum

Uniswap

Base

<div class="sg-post-des">
 Seamless Protocol, a fork of Aave v3 deployed on Base, enables smart contracts with predetermined borrowing strategies to conduct undercollateralized borrowing on-chain. 
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<div class="cointelegraph"> 
 A collaboration across decentralized finance (DeFi) developers is introducing a non-custodial <a rel="noopener noreferrer nofollow" title="liquidity" href="https://thebittimes.com/tag/liquidity.html">liquidity</a> <a rel="noopener noreferrer nofollow" title="market" href="https://thebittimes.com/tag/market.html">market</a>s on layer-2 network Base, promising to enable trustless smart contracts to automatically connect <a rel="noopener noreferrer nofollow" title="liquidity" href="https://thebittimes.com/tag/liquidity.html">liquidity</a> pools with borrowing strategies. 
 Behind the initiative are developers from Seashell, RNG Labs, and Loreum Labs, along with advisers and collaborators from Ampleforth, Uniswap and other projects. The group built the Seamless Protocol, a fork of Aave v3 that allows smart contracts with predetermined borrowing strategies to conduct undercollateralized borrowing on-chain. 
 "As an analogy, Borrowing Strategies are like single-purpose loans, such as home, auto, or school loans — the supplier knows exactly where the <a rel="noopener noreferrer nofollow" title="liquidity" href="https://thebittimes.com/tag/liquidity.html">liquidity</a> is being used, and the borrower is unable to use it for different purposes,” a contributor for Seamless told Cointelegraph, referring to undercollateralized borrowing options. 
 <blockquote class="twitter-tweet"> 
 Very excited to announce a collaborative partnership with @SeamlessFi Seamless is a decentralized, non-custodial <a rel="noopener noreferrer nofollow" title="liquidity" href="https://thebittimes.com/tag/liquidity.html">liquidity</a> <a rel="noopener noreferrer nofollow" title="market" href="https://thebittimes.com/tag/market.html">market</a> that is launching on @BuildOnBase Can't wait to see where this goes! Learn more about the partnership announcement https://t.co/Id9eVmDohs— Seashell ( seashell.com Arbitrum Vaults) (@getSeashell) August 29, 2023 
 </blockquote> 
 Undercollateralized borrowing isn't something new in the crypto space. Protocols such as Maple Finance offer capital to institutional and qualified investors via undercollateralized products. The process, however, requires a combination of off-chain and on-chain steps, meaning the user seeking capital will have terms negotiated with Maple’s team before a loan is issued on-chain. 
 “Many borrowers already know the purpose of the additional <a rel="noopener noreferrer nofollow" title="liquidity" href="https://thebittimes.com/tag/liquidity.html">liquidity</a> they seek, so Integrated Borrowing Strategies simply connects these steps together. Because the Borrowing Strategies are on-chain in smart contracts, the Liquidity Suppliers have full visibility into how the funds are used,” the protocol explained regarding its core strategy. 
 General purpose loans — such as personal loans that can be used for a variety of situations — are also integrated into the protocol, but are governed by the usual DeFi lending rules that require overcollateralization. 
 Seamless believes its solution is a better fit for DeFi than on-chain reputation scores or on-chain identities, such as WorldCoin's proof of personhood system. “[...] the only way to create conditions for undercollateralized borrowing would be within rails of a smart contract to smart contract system, which brings us back to the fundamentals of crypto and DeFi (trust code over humans),” a Seamless contributor said. 
 Magazine:&nbsp;Recursive inscriptions — Bitcoin ‘supercomputer’ and BTC DeFi coming soon 
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Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/aave-v3-fork-debuts-noncustodial-liquidity-markets-on-base-tbt62306.html">https://thebittimes.com/aave-v3-fork-debuts-noncustodial-liquidity-markets-on-base-tbt62306.html</a>

Aave v3 fork debuts noncustodial liquidity markets on Base

TheBitTimes

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