Long-tail and exotic asset support
Last updated
Last updated
Traditional money markets such as Aave and Compound make it hard for long-tail and exotic assets to get listed on the platforms due to extensive liquidity thresholds in order to shield the protocol TVL since all the assets are grouped in a single pool, thus exposing the risk of a single asset to the entire TVL in the protocol.
Therefore, many protocols are unable to add their tokens as collateral in money markets.
On the other hand, Midas uses the isolated pool model, which enables a wider range of collateral since each asset is only exposed to the risk of the individual pool instead of the broader protocol.
The customizable nature of the platform allows for the creation of separate lending markets for different groups of assets on various EVM chains and allows pool creators to customize a wide range of parameters.
Additionally, Midas takes a consultative approach in pool design and partners with pool creators to help raise awareness to consider key parameters (ie. liquidity depth, supply caps, loan-to-value, etc.) to help ensure the safety of these custom pools.
This allows exotic and long-tail assets to participate in DeFi lending, which allows users to access the liquidity of these long-tail assets without the need to sell them, thus enabling a wide range of strategies and use cases based on how pool creators structure these pools.
