Aave v3 fork debuts noncustodial liquidity markets on Base
A collaboration across decentralized finance (DeFi) developers is introducing a non-custodial liquidity markets on layer-2 network Base, promising to enable trustless smart contracts to automatically connect liquidity 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 liquidity 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.
Very excited to announce a collaborative partnership with @SeamlessFi
Seamless is a decentralized, non-custodial liquidity market that is launching on @BuildOnBase
Can't wait to see where this goes! Learn more about the partnership announcement https://t.co/Id9eVmDohs
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 liquidity they seek, so Integrated Borrowing Strategies simply connects these steps together. Because the Borrowing Strategies
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