LobsterDAO 🦞

02 Dec 2024 15:46

How did you solve it?

LobsterDAO 🦞

02 Dec 2024 15:43

If i gave them my borrowing power i probably did due diligence

LobsterDAO 🦞

02 Dec 2024 15:37

How would you go after the guy in Defi😅 ?

LobsterDAO 🦞

02 Dec 2024 15:34

Enron launching a token

LobsterDAO 🦞

02 Dec 2024 15:33

If you give it to a protocol, u take their hack risks, but at least they don't run away.

LobsterDAO 🦞

02 Dec 2024 15:31

That's the grey area, need to figure the architecture

LobsterDAO 🦞

02 Dec 2024 15:31

Ah ok clear now thanks. Can you use CD to give to a protocol?

LobsterDAO 🦞

02 Dec 2024 15:30

Yes from a lender -> borrower case, borrower will default but might be a different case if lender -> protocol -> borrower

LobsterDAO 🦞

02 Dec 2024 15:29

You are saying user credit, protocol credit, or what? So confusing

LobsterDAO 🦞

02 Dec 2024 15:26

Yes actually Aave is saying that with credit delegation

LobsterDAO 🦞

02 Dec 2024 15:24

Is there a product I can try out or a docs I can read through?

LobsterDAO 🦞

02 Dec 2024 15:22

Yeah got your point, the point here is, on an average Aave has 70% lenders and 30% borrowers, the argument is can credit delegation be used to increase the borrowing and send those yields to the lenders who have delegated, increasing capital efficiency

LobsterDAO 🦞

02 Dec 2024 15:21

Credit delegation is not for use cases of protoocl bootstrapping liquidity. If you want Aave size to support you with that, they will have the arm of GHO brrrr into protocols. Like AMOs in Frax, D3M in Maker

LobsterDAO 🦞

02 Dec 2024 15:19

You are confusing credit delegation and GHO printing?

LobsterDAO 🦞

02 Dec 2024 15:17

In this option I don't need to monitor the protocol's collateral levels and hope there won't be a gas spike, at the time it will need to unfuck whatever fucked situation it will be in for hundreds of accounts

LobsterDAO 🦞

02 Dec 2024 15:45

It is a risk transfer

LobsterDAO 🦞

02 Dec 2024 15:42

I did a project using credit delegation with an Aave fork. In that case it was based on offchain trust mechanisms. My understanding is you'll need some type of trust design to make their credit delegation system possible for more uncollateralized models

LobsterDAO 🦞

02 Dec 2024 15:35

Even if whoever you delegate to goes away without paying... you still don't get liquidated and you'd want to repay that debt and only later go after the guy that rugged you :D

LobsterDAO 🦞

02 Dec 2024 15:34

https://x.com/tier10k/status/1863591931311182129.

LobsterDAO 🦞

02 Dec 2024 15:32

Who doesn't matter. But it makes a difference who you give it to

LobsterDAO 🦞

02 Dec 2024 15:31

The loan is fully collateral, what difference does it make who provides the collateral?

LobsterDAO 🦞

02 Dec 2024 15:31

Not my problem as a user innit?

LobsterDAO 🦞

02 Dec 2024 15:30

Existing lender not borrowing against their lending position letting someone else to borrow from Aave ( or delegating the borrowing power to someone else )

LobsterDAO 🦞

02 Dec 2024 15:26

No not free credit to the wallet, to a credit account let's say

LobsterDAO 🦞

02 Dec 2024 15:25

are you saying I can get someone else to post my collateral for me ? If that’s the case aren’t I incentivised to default?

Or is it related to the LLTV

LobsterDAO 🦞

02 Dec 2024 15:24

I still don't get it. You let existing borrowers have delegation, and thus you give them free credit? Ye well then I am happy to run away

LobsterDAO 🦞

02 Dec 2024 15:21

I am a bit confused what u guys r arguing on tbh

LobsterDAO 🦞

02 Dec 2024 15:19

Didn't get you, can you please explain

LobsterDAO 🦞

02 Dec 2024 15:18

But option 2 is way more expensive for the protocol because of the liquidity bootstrap and coldstart problems
The goal is to improve the capital efficiency of the current liquidity

LobsterDAO 🦞

02 Dec 2024 15:16

I would rather go with option 2.
As it is more clear what the risk is, and the failure scenarios.