What problems does MultiLend solve?

Problems of current Lending and Leverage protocols

Restricted asset types

• Current Lending and Leverage markets like Aave and GMX only support a very limited number of assets.

• Less-popular, but vast and legitimately valuable assets, are unlikely to ever be approved.

Inefficient Governance

• Current Lending protocols manually adjust interest rates, collateralization requirements, and other parameters. These key parameters are manipulated by specific parties rather than market forces.

• This greatly limits capital efficiency and may potentially harm the protocol and the interests of most users due to incorrect or malicious governance decisions.

Risk of price feed manipulation

• Current Lending protocols rely heavily on external price feeds, and key aspects such as liquidation and borrowing are all dependent on oracles.

• Once oracles are manipulated, the potential losses for borrowing users could be incalculable. And such situations have occurred several times, in cases like AAVE and Mango.

MultiLend's Solution

No need for governance

• Pool utilization determines interest rates.

• Lenders determine collateralization ratios.

No need for permission

• Users can create lending pools for any token without the need for permission and provide supply token for them, similar to creating trading pairs on Uniswap.

No need for price feed

• Lenders decide the lending prices at which they value collateral. This also determines the borrower's collateralization ratio.

• Liquidation Criterion is determined by the LUP and the user's TP.

  • LUP: The lowest lending price among utilized supply token or “lowest utilized price” is called the LUP.

  • TP: The TP of a loan is the price at which the value of the collateral equals the value of the debt.

• Dutch auction and Liquidation bonds ensure appropriate liquidations.