Seamless Protocol Launches On-Chain Undercollateralized Borrowing via Preset Strategies

Seamless Protocol, a fork of Aave v3, debuts on Base layer-2 to enable undercollateralized borrowing.
Smart contracts with predetermined strategies can borrow liquidity on-chain via Seamless.
Seamless connects liquidity pools to borrowing strategies without a custodian.
General loans still require overcollateralization like typical DeFi lending.
Seamless believes undercollateralized borrowing works better on-chain than reputation scores.

cointelegraph.com

Relevant topic timeline:

8/31/2023

DeFi Deposits on Base Soar as Yield Farmers Plant Aerodrome Harvest - Decrypt

The total value deposited into DeFi contracts on the Base network reaches an all-time high of $301.2 million due to liquidity mining incentives on the Aerodrome decentralized exchange, while lending protocols like Aave on the Ethereum layer-2 see scarce liquidity.

9/20/2023

Cosmos DeFi Protocols Team Up to Solve Liquidity Issues, Integrate Token Bridging and Lending

A group of decentralized finance protocols in the Cosmos ecosystem, including Wormhole, Swing, Tashi, and Evmos, are collaborating to solve liquidity issues by introducing bridged tokens and integrating liquidity pools, allowing users to swap, borrow, and perform various DeFi actions.