Jacob Shiach, CEO of Union Finance, introduced Union Finance’s permissionless lending protocol, which aims to facilitate decentralized lending by promoting trust and coordination between individuals, DAOs and contracts.
Shiach gave a speech at the ETHBarcelona conference about collateral-free lending and leveraging friendships for fun and profit.
During the conference, Shiach discussed various aspects of credit and its role in the financial and real economy. He emphasized the importance of time travel, scalability, technology and lifeline credit in driving economic growth and making more efficient decisions. He also emphasized the complexity of loan underwriting and the need to take into account reliability and repayment ability when assessing borrowers.
Shiach introduced Union Finance’s permissionless lending protocol, which allows individuals and entities to deposit funds into a smart contract and extend credit to trusted borrowers. The protocol enables coordination among multiple lenders, facilitating fair repayment and reducing coordination costs. Different credit networks can merge and create more complex credit structures by using on-chain networks.
Additionally, Shiach touched on the potential for credit scoring within the protocol, citing the availability of on-chain data that can be used for statistical analysis and underwriting modeling. However, he emphasized that trust should not be transitive and that the protocol does not allow unlimited distribution of trust to maintain a user-friendly experience.
Union Finance’s permissionless lending protocol has been live on the Optimism network for about two months, allowing individuals and communities to participate in decentralized lending. Shiach expressed excitement about the future possibilities of the protocol and invited further exploration and experimentation within the Union Finance ecosystem.
Jacob Shiach’s presentation shed light on Union Finance’s innovative approach in revolutionizing lending practices through the permissionless lending protocol. With its focus on trust, coordination and decentralized decision-making, the protocol has the potential to unlock new opportunities for borrowers and lenders in the blockchain space.
