True permissionless lending can list all assets without separating liquidity but isolating risks
Leizd offers more than just lending; it is a “financial marketplace” in itself, with two major added values. First, Leizd can list a wide range of assets while reducing volatility and liquidity risk.
The second is the ability to achieve high profitability by leveraging conventional CDPs.
Shared pooling protocols such as Aave and Compound share the volatility risk of all listed assets. Therefore, only assets that are recognized as creditworthy are listed. On the other hand, protocols that separate pools, such as Kashi, don’t provide sufficient liquidity.
Leizd, however, not only allows any asset to be listed by adopting segregated pools, but also reduces “liquidity concerns” for any asset by connecting the pools with a bridge token, USDZ. Among all asset management needs, there are still assets that are less creditworthy.
By combining USDZ with each asset, rather than tying them together directly, it is possible to isolate the risk of volatility. It is also possible to borrow any asset by replacing the collateral with USDZ, which bridges between the pools.
USDZ, which is also a stablecoin, is collateralized by APTOS, USDC, USDT, DAI, BTC, and ETH. while USDZ has the utility of increasing transaction volume, it employs traditional CDP to minimize risk.
By providing liquidity in USDZ to pools listed on Leizd, investors can earn a return commensurate with the liquidity and risk of each pool. Investors can realize high profitability depending on the risk and demand (liquidity) of the pool.
Users can also leverage operations in a smart way. This feature has not been widely used by investors due to the limited amount of assets that can be listed on protocols such as Aave and Compound.
However, the Leizd protocol was designed to be leveraged from the development stage, allowing users to leverage up to 10x long and 9x short in a smart UX, similar to Amazon’s one-click order.
Leizd also envisions a multi-chain deployment with Sui as well as Aptos, allowing users to borrow assets on sui against assets on Aptos, and vice versa. By further expanding the network, the usefulness of the Leizd protocol is unlimited.