Why Forlend

Why Do We Need Another Decentralized Lending / Borrowing Protocol?

In contrast to traditional finance, Decentralized Finance (DeFi) created a permissionless and censorship-resistant system. But these advantages have also brought about unexpected problems, specifically due to transaction traceability and scalability.

Many whales and institutional players stay out of DeFi because of the transparency and traceability of blockchain transactions that endanger them. Their proprietary trading techniques expose them to expensive front-running attempts.

Privacy is a financial primitive. Institutional traders and whales are waiting for a DeFi system that can provide the necessary privacy protections to conduct trades. They need dark pools, a way to protect client transaction data, and more.

Forlend is able to provide the privacy and adaptability they need. It protects on-chain data from competitors while allowing off-chain data to be audited by authorized parties, like regulators.

Privacy dApps will also make DeFi a safer environment for retail investors. Due to the shallow liquidity pools that plague the DeFi market (which, from a macro point of view, is still quite a new market), traders have to contend with daily volatility. However, by creating a more reliable and secure environment for institutional capital, Forlend will help deepen those pools and hopefully contribute to a more stable environment for all DeFi users. User funds will have a more secure environment for borrowing and lending, and user data will be better protected by the zero-knowledge platform.

Congestion on the Ethereum network is another problem for DeFi, one that won’t be solved by the Merge. There are, however, many chains with a high TPS rate that are attempting to relieve that congestion, and Forlend’s multi-chain architecture will be able to access those networks.

So to summarize, open financial systems of the future will require networks that:

1. Can handle large transaction volumes.

2. Have low fees.

3. Offer the privacy protections both institutional and individual traders require.

Forlend matures the DeFi space by fulfilling all three requirements and attracting institutional capital, deepening liquidity pools, and connecting isolated ecosystems.