This is a chapter from the Token Economy book series. All subchapters are collapsed under their subchapter headings to make the page more readable. Find copyright information on this text and about the book an the end of the page.

<aside> 🦚 Decentralized lending services use smart contracts to create marketplaces for a tokenized credit and lending system for any type of asset. In theory, any fungible and non-fungible token that represents a currency, commodity, security, real estate deed, artwork, or SME share could be tokenized and collateralized. In combination with decentralized exchanges using liquidity pools, decentralized lending protocols can provide a multi-sided marketplace not only between lenders and borrowers, but also sellers and buyers of tokens. Tokenization of assets in combination with tokenized credit and lending services and liquidy pools could eventually lead to a convergence of money, financial markets and the real economy.

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Intro

Tokenized Lending

Tokenized Borrowing

Over-Collateralization

History of P2P Lending Protocols

Flash Loans & Flash Attacks

Staking

Challenges & Outlook

Chapter Summary

Footnotes

References & Further Reading

1.9 Tokenized Derivatives, Synthetics & Insurances

<aside> 📖 This is an excerpt from the book “Token Economy: Money, NFTs & DeFi”

RIGHTS Copyleft 2023, Shermin Voshmgir Creative Commons CC-BY-NC-SA

NON-COMMERCIAL USE This license only allows reusers to distribute, remix, adapt, and build upon the material in any medium or format for noncommercial purposes only, so long as attribution is given to the creator. If you remix, adapt, or build upon the material, you must license the modified material under identical terms.

COMMERCIAL USE For commercial use contact: [email protected]

BibTeX @book{title={Token Economy: Money, NFTs & DeFi}, author={Voshmgir, Shermin}, year={2023}, publisher={Token Kitchen} }

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