Problems and Solutions
In building a permissionless cross-chain lending protocol, we identified the most pressing challenges in multichain DeFi and designed focused solutions through our integration with Chainlink’s decentralized infrastructure.
Fragmented Liquidity Across Chains
DeFi users are often constrained by isolated liquidity pools on individual blockchains, limiting access to optimal borrowing or lending opportunities.
Caér Finance's Solution :
Caér Finance solves this through secure cross-chain functionality powered by Chainlink CCIP, enabling users to deposit collateral on one chain and borrow on another without relying on centralized bridges or wrapped assets. This unlocks multichain capital access and improves capital efficiency across ecosystems.
Delayed Price Feeds
Traditional oracles often suffer from latency or low update frequency, resulting in outdated collateral pricing, miscalculated LTV ratios, and increased exposure to market volatility.
Caér Finance's Solution :
By integrating Chainlink Data Streams, Caér accesses sub-second, real-time price data on-chain. This ensures up-to-date collateral valuations and dynamic loan tracking, empowering users with accurate, real-time position insights.
Closed and Restrictive Protocols Hinder Broader Participation
A significant number of lending platforms operate within closed ecosystems, relying on mechanisms such as whitelisting, centralized governance, or limited collateral support. These restrictions reduce accessibility, limit user autonomy, and compromise the principles of transparency and decentralization.
Caér Finance's Solution :
Caér Finance is designed as a fully permissionless protocol, enabling any user to engage in lending or borrowing activities without the need for prior approval or reliance on centralized intermediaries. This open-access architecture fosters inclusivity, enhances transparency, and aligns with the core ethos of decentralized finance by supporting unrestricted global participation.
Collateral Management is Inflexible
Other lending protocols require users to exit positions to adjust their collateral, incurring costs and friction during portfolio adjustments.
Caér Finance's Solution :
Caér introduces a native in-protocol collateral swap mechanism, allowing users to seamlessly change their collateral type without closing positions. This feature is supported by Chainlink Data Streams, ensuring accurate pricing during swaps and enabling more agile, responsive portfolio management.
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