According to Cointelegraph, decentralised finance (DeFi) developers are collaborating to introduce a non-custodial liquidity market on layer-2 network Base. Seamless Protocol, a fork of Aave v3 deployed on Base, will allow smart contracts.This new project is expected to enable smart contracts to connect liquidity pools automatically along with borrowing strategies.
“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.
The process is expected to require a combination of off-chain and on-chain steps. Supposedly, this means the user seeking capital will need to have terms negotiated with Maple’s team before issuing a loan on-chain, Cointelegraph added.
“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 are on-chain in smart contracts, the Liquidity Suppliers have full visibility into how the funds are used,” Cointelegraph concluded.
(With insights from Cointelegraph)
