The Next Frontier of Onchain Lending

Onchain lending has become the backbone of DeFi. Yet despite explosive growth, the underlying architecture has barely evolved since Compound v2. >99% of DeFi still runs on some variation of the overcollateralized, variable-rate model pioneered years ago.

For the world to truly operate onchain, lending must mature far beyond its current form.

What began as a simple mechanism for borrowing stablecoins is evolving into a full financial substrate. The purpose of this article is to highlight the latest breakthroughs in protocol design, credit architecture, and regulations that are pushing onchain lending towards becoming the base layer of a programmable global economy.