Product Comparison

How do we compare to other lending platforms?

The main difference is that the Underworld uses lending markets, and isolated risk markets, while other lending platforms both calculate risks globally, such that the solvency of any token can affect the solvency of the whole platform, there are namely 3 consequences of this setup:
  1. 1.
    Limitless Asset Selection: isolated risk markets is that the Underworld is able to allow any token to be listed [see What are isolated risk markets? in the Underworld FAQ].
  2. 2.
    Elastic Interest Rate: an elastic interest rate is used to incentivize liquidity in a certain range [see What is the elastic interest rate? in the Underworld FAQ].
  3. 3.
    Custom Oracles: the Underworld's oracles need to be customizable to provide price feeds for infinitely many tokens, which is why we enable users to choose from any oracle and the market may decides whether to trust said oracle, which is made publicly available in our marketplace.
Underworld Lending Market
Scream, Geist, etc.
Isolated: asset-collateral pair
Broad: one pool, many assets
Isolated: distinct markets
Systemic: domino-effect
Decentralized: user creates
Centralized: protocol decides
Interest Rate
Elastic: supply-demand responsive
Fixed: manual adjustments
Decentralized: user selects
Centralized: protocol decides
Lenders: get the profits
Liquidators: get the profit