search

FinTechIntro / 2024-Spring-Final

0 stars 0 forks source link

On-chain lending mechanism investigation #3

Open LouisTsai-Csie opened 4 months ago

LouisTsai-Csie commented 4 months ago

Summary

Please give a short summary of this research topic.

In traditional finance, borrowing money from banks is common. Is there an equivalent approach for borrowing funds on the blockchain? If so, what is the mechanism, and what are the potential risks involved?

Description

Please provide a detailed description to the topic.

There are several existing lending protocols, such as Compound and Aave, how do they handle lending activities on chain. You might explain the following technical terms:

  1. Collateral Factor
  2. Health Factor
  3. Interest Rate Model
  4. Liquidation
  5. Overcollateralization

How do lending protocols incentivize the lender to provide funds, and how do they calculate the accrue interest? What is the potential risks in such lending activities?

Source

Please provide related resource for the topics, including articles, research papers and more.

SoK: Decentralized Finance (DeFi)

SoK: Lending Pools in Decentralized Finance

DeFi Protocols for Loanable Funds: Interest Rates, Liquidity and Market Efficiency

Aave

Compound

[Compound V3 Book](Compound V3)

Others

Please provide more information if there is any.

None

ayakari commented 4 months ago

I want to get assign of this topic.

LouisTsai-Csie commented 4 months ago

@ayakari Done.

For this topic, I anticipate you to at least compare the difference among Compound V2, V3 and Aave V2, V3.

And we will focus on the interest rate model when considering the final score.

Angela-0829 commented 4 months ago

Hi TA, I want to choose this topic for my final project. I am 蕭襄, and my student ID is r12946003.

LouisTsai-Csie commented 4 months ago

@Angela-0829 Done, please check

Angela-0829 commented 4 months ago

@LouisTsai-Csie Sorry, I accidentally clicked the remove button. Could you please assign it to me again? Thank you very much!

LouisTsai-Csie commented 3 months ago

@Angela-0829 Done, please be careful.

ayakari commented 3 months ago

@LouisTsai-Csie I have some questions. Should I compare difference between versions of the same protocol? Or only between the two protocol. It seems like there are no difference between v2 and v3.(Compound and Aave)

LouisTsai-Csie commented 3 months ago

@ayakari, are you sure there is no difference between Compound V2 and V3? The architecture is entirely different, and their underlying mathematics are distinct.

Comparing Compound and Aave is a minimum requirement; we would like you to research more DeFi lending protocols for differences in interest rate models, architecture, liquidation mechanisms, and more.

unipooop commented 3 months ago

hi , I would like to go through the topic , thank you

LouisTsai-Csie commented 3 months ago

@unipooop Done, please check.