The Underworld is a lending and margin trading platform, built on the CoffinBox, that enables anyone to create customized and gas-efficient markets for lending, borrowing, and collateralizing a variety of DeFi tokens, stable coins, and synthetic assets. The Underworld's broad diversity of tokens is supported through the use of a unique, isolated market framework. Unlike traditional DeFi money markets where high-risk assets can introduce risk to the entire protocol, in the Underworld, each market is entirely separate (similar to the SoulSwap Exchange). This means the risk of assets within one lending market has no effect over the risk of another lending market. Traditional lending projects have permitted users to add liquidity into a pool-based system. In these systems, if one of the assets were to drop in price faster than liquidators could react, every user and every asset would be negatively impacted. In this sense, with protocols like Scream and Compound the total risk of pool-based platforms is determined largely by the riskiest asset listed on the platform. This risk increases with every extra asset that is added, which is precisely why most lending platforms provide very limited asset selection. The Underworld's unique design enables an entirely new kind of lending and borrowing. The ability to isolate risks into individual lending markets means that the Underworld is flexible enough to permit users to add any token.
Additionally, isolating the risks of the different lending markets enables users to achieve leverage in one click, without ever leaving the platform. Most lending platforms require you to borrow on one platform in order to lend on another, and repeat. Because the Underworld separates markets into distinct, isolated pairs (markets), lending and borrowing into the same market are composable. This composability results in the Underworld providing the unique opportunity to automate leverage in a single click.