Ethereum Weekly Recap Week 17 (24/04 – 30/04): Blend – A Revolutionary Lending Protocol Empowering Borrowers with No Expiries and No Oracles

By CoinWire

May 5, 2023

Table of Contents

KEY TAKEAWAYS

Blur Introduces Blend – The Peer-to-Peer Perpetual Lending Protocol for NFTs.
OpenZeppelin shares insights from its ERC-4337 audits.
Lens Protocol Introduces Momoka: A Groundbreaking Solution to Scale Decentralized Social Networks.

ECOSYSTEM UPDATES

Blur Introduces Blend – The Peer-to-Peer Perpetual Lending Protocol for NFTs.

Blend is a peer-to-peer perpetual lending protocol that supports arbitrary collateral, including NFTs. It has no oracle dependencies and no expiries, allowing borrowing positions to remain open indefinitely until liquidated, with market-determined interest rates.

Blend matches users who want to borrow against their non-fungible collateral with whatever lender is willing to offer the most competitive rate, using a sophisticated off-chain offer protocol. It also has some important differences to improve borrower experience, such as no oracles and no expiries, automatic rolling of borrowing positions, and liquidations triggered by the failure of a Dutch auction.

Blend uses a peer-to-peer model where each loan is matched individually, and each loan is constructed step-by-step, starting with a simple peer-to-peer fixed-rate lending protocol and gradually adding adaptations to allow gas-efficient rolling and market discovery of floating rates.

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OpenZeppelin shares insights from its ERC-4337 audits.

OpenZeppelin has shared findings from its security audits for ERC-4337, which is a standard aiming to implement account abstraction at the application level. This involves using contract functionality to enhance user account security and features.

However, OpenZeppelin suggests that implementing Account Abstraction at the protocol layer would be more secure. Despite the new features introduced by ERC-4337, it also introduces potential attack vectors. Malicious users could exploit paymasters, which are entities that pay for user transactions in native gas tokens, to obtain free transactions.

To mitigate risks, OpenZeppelin recommends that developers utilize its Defender Sentinels tool to establish security monitoring, which includes circuit breakers, automated actions, and notifications. The development of ERC-4337 started in 2021.

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Lens Protocol Introduces Momoka: A Groundbreaking Solution to Scale Decentralized Social Networks

The Lens team has introduced Momoka, an Optimistic L3 scaling solution that aims to address the challenge of scaling decentralized social networks while maintaining user sovereignty. Momoka processes transactions off-chain to achieve hyperscale and reduce costs, while also providing greater scalability for social networking.

It is open-source and can be run as a node to validate Lens data availability publications and related actions. Momoka is built to operate independently, without any dependencies on connectivity layers, and supports indexing. The long-term goal is to expand Momoka to work as a full network agreement infrastructure.

For more details, visit here