# Building collaborative lending infrastructure - Tadeo

- Channel: [ETH Belgrade Community](https://streameth.org/eth-belgrade-community)
- Date: 2024-10-07
- Duration: 13:39
- Topics: People & Blogs
- Watch: https://streameth.org/watch/yt-ms-5iTsCroI
- YouTube: https://www.youtube.com/watch?v=ms-5iTsCroI

## Description

Building collaborative lending infrastructure - Tadeo

## Transcript

well hi everyone my name is t today I'm going to be talking about a bit how lending infrastructure is becoming more collaborative and let's say less competitive uh now we get this on I can actually tell you my true intentions there you go thank you um we can also this call this talk a very non-exhaustive and highly opinionated uh view of the of money markets uh I have my my own uh world viw I'm going to try to convince you of it I'm going to admit anything that really doesn't fit that model uh hopefully you agree with me uh so different infrastructure or money Legos are becoming are being broken down into smaller smaller pieces and through this process we're see an emergence of specific actors or Market participants that becoming more and more uh relevant um as Lego builders uh or operators so today's presentation is going to be coming in threes or for the most part uh I'm going to be talking about three Trends uh three participants uh and then because I don't really have that many opinions it's just going to be the one opinion about all of this so let's start with the trends uh the first one is landing platforms as base layers um we've seen it with morha blue uh now with the future release of Oiler V2 um we seeing that um lending platforms are becomeing more open unopinionated and what I like to call agnostic layers essentially allowing operators to offer the bare minimum of what we consider to be a landing platform um this um can also can be described for ab before although you can argue it's less open as more uh for their own markets but essentially they're all creating this unified liquidity layer by which they can build on top a like specific features to offer to different uh users um and quite importantly here and back to the first two examples is that um operators can actually not just choose the parameterization of of the of the lending Market but actually choose what features they want to offer uh and quite importantly here is not just what features you do offer uh but also what features uh you don't um this is say you're going to be able to now uh when you see um new interesting features coming to the market you no longer have to Fork your competitor uh you can actually use the same base layer technology that they're using um and this will also not only allow you to um offer customized experiences to to users um but also be able to uh a little less painfully uh swap new features in and out uh for example if you consider curve's new uh CRV usds uh soft liquidation feature um you can actually use them I can implement it in a much less painful manner uh you know simply use uh defi saver now second point or second trend is the emergence of uh sophisticated use of parameterization or simply allowing or empowering users uh to on the on their own side Define what parameters they much prefer uh to operate with uh in their own positions here we have a few examples we have credit Guild that if you have enough uh governance tokens actually as a user you can propose your own uh lending terms and other users in the same markets can not only uh deploy capital in those pools but actually deploy Capital to be its own first loss cap first loss capital or Junior Capital um we then have Ashna that is operating in a manner more like an aerospace engineer uh which I'm still not fully capable of operating uh lastly you have liquid TV2 also coming out very soon uh where they will allow users to Define their own their own interest rate that they like to pay um on the the positive side this is enabling the crowdsourcing of of Market driven uh interest rates uh without necessitating governance to react uh in a con constantly moving um Market with user preferences changing on the downside if you set yourself an interest rate is too low uh you'll end up being the first one to be redeemed when the market needs to when the system needs to rebalance itself all this allows uh users to have a more customized experience and actually decide for themselves um but at the same time it it opens up a quite a seep learning curve that whether users are taking advantage of it actually learning of it or actually taking advantage of third and last trend is the idea that stable coin issuers are forgoing their own proprietary um credit facilities and actually open themselves up to external venues um so we have for example angle uh with the introduction of USDA where they forgo their own um CDP system uh and instead using our a Amo and what they call the transmitter in order to swap the collateral out that uh is supporting the stable coin AIS G has um the term facilitator that in the near future means that not only will you be minting G directly from the a markets but actually from other external markets and uh I think a more more known example is make uh the maker cdps or maker volts are still available in the market but they're been overshadowed by external facility facilitate facilities uh you have spark Moro and quite famously treasure bills now um representing the most amount of backing uh for the stable coin itself and this is uh to my point here is that St coin issues are narrowing down the focus area and their domain expertise and looking at the demand side and the price mechan price stability mechanisms uh for the unstable coins uh while letting the supply side uh which has been the main focus of all these players um to external agents so with those three Trends I want to talk about three participants that I think are emerging as key players in this market uh one is aggregators then we have Risk Managers and finally we have governance or metag governance participants so first one aggregators the becoming very sophisticated and opinionated um I think here some people have already been using Y for quite a while uh with the strategy so essentially uh buckling up quite a few transactions into one because previously in order to actually get yield from the market you would actually do quite complex interactions now this is no longer the case you have very simple or let's say very direct source of yield uh so y for example now offers a ux segregation layer for Ashna uh you're able to through their juice volts product essentially operate Ashna with a few simple clicks which is much more simpler and I could say much more colorful uh experience um also here in the room I'm guessing there's more than one person has had their position saved from Liquidation by defy saver uh def saers automations have become more sophisticated and actually much more needed uh we essentially have a much more growing uh size of of uh base layer protocols uh that you're able to tap in for very different um um for different um features but at the same time you're more and more requiring this automation across protocols not actually having to deal with liquidity issues uh on one position against the next and then last but not least a new entrance in Market is contango contango is offering Perpetual features built on top of money market um with this uh the I think the one thing I want to point out with them is that the ux aggregation layer uh does away with all the terms that we as um users of money markets Legacy um money or lending platforms have been accustomed to uh and instead focuses on the experience of a Trader at a centralized exchange for Perpetual Futures you no longer see uh terms of stability fees and interest rates and actually see uh funding rates uh all this allows you to take advantage as a user from the multiple protocols coming underneath and actually having uh your specific needs met either from the uh ux but actually more importantly the automation of it second one is Risk Managers I think we should think about Risk Managers as fund managers from now on they're no longer in the back seat um just ensuring that the protocol doesn't explode but actually are the Competitive Edge of these protocols uh good risk parameterization and risk management gives you Competitive Edge and actually makes your product uh better product in this realm of risk risk assessments um another big thing is uh these companies um particularly blog analytica they've been operating um in a dow context where they would propose risk parameter changes and then they would be voted on continuously by governance it came to the point where we actually just rubber stamping their proposal because the systems are quite complex the need for exp opinions is quite High uh so it's very difficult to ask a for individual voters to actually have a cont opinion or a better actually better form opinion uh that these experts um so what I hope that we keep seeing is this movement from rather than rubber stamp governance via rubber stamping we get to see um governance by deferred responsibility actually uh formalizing the the the importance of these teams and giving them uh full autonomy Independence when it comes to risk management um and finally but not least to this point um these teams are not only looking at uh setting the parameter for next week's uh vaults they're also looking at liquidity risk and more and more looking at traditional Finance products coming into the market uh and there therefore necessitating the knowledge of uh triy risk management and the last Market participants are delegates we've had the merges of professional delegation teams that were really in the um asked to just do voter agregation uh in a form of allowing for a mitigation of voter apathy we these people to be vot uh voting continuously on um I think we need to ask more from them and we've seen specific teams in the market actually come in and provide this like added value outside of just simply voting um you have for examp carpet key um also St labs and SE latam that are providing more value just uh just than simply uh voting and and communicating their voting situation uh the voting um opinions um and again it's also following this movement from uh governing by consensus meaning we want everyone to vote as much as possible to government by consent we vote on Expert teams to uh fulfill daily tasks and then governance is still required this teams to be more transparent and open than traditional companies would do in order to have this overview and possible VTO power um if they they misalign with the ethos of the uh community and from doing this um we've seen particularly for example with kaar Kei where they're looking at uh growing the ecosystem from nois and doing um Business Development uh in a form that hasn't been seen until now uh I like to say that the best type of business development is not actually BD itself it's ingrained in the culture of the of the entire organization and this seems are actually providing this added value to those communities uh and don't get me wrong there's still delegate teams that uh are very valuable uh as their own just for one single protocol um but the fact that you have these teams across multiple protocols and not just on the defi side but across um layer twos actually gives you the Competitive Edge to to take advantage of this uh new real of collaboration so my one opinion my one opinion is that collaboration is key and is ingrained in in the midst of this new wave of innovation um teams actually embrace this and look for ways to actually be more collaborative with others in the space will actually outbid uh those who do not uh in economics we have this term uh perfect compet competition basically a perfect competitive market is one that no single player can actually dictate the terms or bully others into the market um it's all smaller firms or entities that um are operating the same level therefore um deciding what money Legos and what money Legos Builders you choose uh ends up becoming the uh competitive advantage in the market great that was it for me thank you very much I won't be taking questions but I love to talk to uh you outside uh if you disagree with with me I want to exchange hands uh I'll be happy to as well uh and I thank you very much bye