In this article we are going to be doing a deep-dive into Liquid Lend and the submarkets Liquid Lend is targeting - collateralizing LP tokens and the tremendous impact it will have of the field of Decentralized Finance akin YFI’s or Uniswap’s impact on helping shape and moving DeFi forward.
Liquid Lend
Liquid Lend is Yield Bank’s product for collateralizing LP tokens without (re)moving the underlying liquidity the LP token consist of while keeping the passive income the LP token is generating while its being held in a smart contract as collateral. You can read our full article about Liquid Lend here as well as an article about Secondary Markets in DeFi which we will touch on later in today’s update.
The issue at hand
There is currently a big problem in DeFi that only a few people are talking about and even fewer are trying to solve, yet a significant amount of money is locked away idling because of it, resulting in opportunity cost and potential profit lost with every second that goes by without it being solved.
Currently, a significant percentage of LP tokens are simply idling, i.e. being held in the wallets of both institutional investors and individual retail users.
