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Podcast: The Crypto Show
Episode: Re-building Lending: Exploring the Potential of Oracle-Free Protocols
Description: The emergence of oracle-free lending protocols, such as Ajna, Ethereum Credit Guild, Metastreet's Automated Tranche Maker, and Blur/Paradigm's Blend, has sparked interest in re-building lending in the decentralized finance (DeFi) space. These protocols deviate from traditional models by allowing lenders to evaluate risks and determine collateral requirements without relying on a universal oracle or governance factors. Lenders can choose specific assets as collateral and offer quote assets for borrowing, adjusting terms as asset prices change. A key advantage of oracle-free protocols is that they eliminate the concept of bad debt, as lenders take full responsibility for the solvency of...