{"id":221901,"date":"2021-04-08T15:31:26","date_gmt":"2021-04-08T12:31:26","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/c-r-e-a-m-launches-iron-bank-flash-loans-eyes-cross-chain-capital-efficiency\/"},"modified":"2021-04-08T15:31:26","modified_gmt":"2021-04-08T12:31:26","slug":"c-r-e-a-m-launches-iron-bank-flash-loans-eyes-cross-chain-capital-efficiency","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/c-r-e-a-m-launches-iron-bank-flash-loans-eyes-cross-chain-capital-efficiency\/","title":{"rendered":"# C.R.E.A.M. launches Iron Bank flash loans, eyes cross-chain capital efficiency"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a413187c3e52\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a413187c3e52\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/c-r-e-a-m-launches-iron-bank-flash-loans-eyes-cross-chain-capital-efficiency\/#DeFi_Voltron\" >DeFi Voltron<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/c-r-e-a-m-launches-iron-bank-flash-loans-eyes-cross-chain-capital-efficiency\/#Capital_Efficiency_Squared\" >Capital Efficiency Squared<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># C.R.E.A.M. launches Iron Bank flash loans, eyes cross-chain capital efficiency   <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDQvY2I4ZjEwZTItOTdiMS00NDIzLTlmYzktMzEzNDg3M2I4ZjY0LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a136f3a>In a press release today, C.R.E.A.M. Finance announced a new feature for (and, by proxy, an unofficial relaunch of) Iron Bank, the protocol-to-protocol lending platform designed for flash and undercollateralized loans.\u00a0<\/p>\n<p>C.R.E.A.M., which founder Leo Cheng describes as \u201cthe yolo-est Compound fork,\u201d is a money market designed to cover assets that are \u201cunderserved\u201d and allow for greater capital efficiency for decentralized finance (DeFi) power users, listing assets such as Yearn vault tokens and liquidity pool tokens. <\/p>\n<p>\u201cWe\u2019re adding assets that people want to have, but others may be scared of,\u201d said Cheng. <\/p>\n<p>Iron Bank is, in many ways, an extreme implementation of that ethos. The protocol, which allows for undercollateralized protocol-to-protocol lending, is meant to serve as DeFi\u2019s equivalent of the $10 trillion corporate debt industry, allowing the principle of \u201ccorporate credit\u201d to function between whitelisted protocols.\u00a0<\/p>\n<p>Some critique the idea conceptually \u2014 undercollateralized lending is still an exotic niche in DeFi \u2014 and those critics took a victory lap in the wake of the Alpha Homora hack that led to an exploit of Iron Bank. This despite Iron Bank bearing little responsibility for the vulnerability, and the fact that the Iron Bank has quietly continued to function across multiple Yearn vaults for months \u2014 though not nearly at the scale to which it\u2019s capable.\u00a0<\/p>\n<p>Now, with a new feature release and Alpha Homora gearing up for a relaunch of its V2, Iron Bank is ready to re-enter the spotlight \u2014 and it may be poised to do so in a major way.\u00a0<\/p>\n<h3><span class=\"ez-toc-section\" id=\"DeFi_Voltron\"><\/span>DeFi Voltron<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Cheng speaks with a touch of pride about C.R.E.A.M.\u2019s status as a member of \u201cDeFi Voltron\u201d \u2014 the body of high-profile protocols that \u201cmerged\u201d with or were \u201cacquired\u201d by the Yearn ecosystem at the end of last year.\u00a0<\/p>\n<p>What started as a casual conversation about getting DeFi maestro Andre Cronje involved in the project quickly became a team-level integration between Yearn and C.R.E.A.M., says Cheng. To this day the practicalities of the integrations\/mergers\/collaborations between the protocols largely remains a mystery to outsiders, and as a recent rupture with Cover has demonstrated, the \u201cmergers\u201d are not always etched in stone. <\/p>\n<p>In Cheng\u2019s view, right now the various projects\/protocols can be thought of as the pre-Constitutional United States: separate state-level entities are linked through the Articles of Confederation, and each leverages their own currency. <\/p>\n<p>He hinted that one day it might be a \u201cpossibility\u201d that all tokens under the Yearn banner merge to create a single, unified token. <\/p>\n<blockquote><p>\u201cI\u2019m not saying that\u2019s where we\u2019re headed, but I think it\u2019s a possibility in the long run \u2014 I don\u2019t know.\u201d\u00a0<\/p><\/blockquote>\n<p>C.R.E.A.M\u2019s purpose in the Yearn DeFi Voltron machine is to be the one-stop all-things-lending solution, and as the Iron Bank proves, lending is a wide umbrella. While Iron Bank can be difficult to grasp conceptually, ultimately what it creates is simple capital efficiency, says Cheng.\u00a0<\/p>\n<p>\u201cLook at the anatomy of a flash loan,\u201d says Cheng. <\/p>\n<p>A flash loan might interact with multiple protocols at once and trade between multiple assets, but Ethereum \u201cdoesn\u2019t quite care, and it doesn\u2019t quite see the borders with the smart contract projects.\u201d They jump between protocols and assets in a \u201cflash,\u201d enabled by open liquidity. <\/p>\n<p>If this borderless vision is taken to its extreme, &#8220;any asset a user has on Ethereum, they should be able to leverage it to borrow anything else anywhere else,&#8221; and if liquidity can be achieved through an arbitrage trade via a flash loan, that alone counts as a form of asset \u2014 at least in an ideal, capital-efficient future. <\/p>\n<p>Iron Bank brings this principle of open liquidity to protocol-to-protocol relationships. Cheng says that C.R.E.A.M. is looking into working with projects like Saffron Finance, who are developing risk-based tranched debt. If users think that Iron Bank debt is riskier (especially at the upper end of its possible leverage, up to 95x), Saffron has the infrastructure to support that. <\/p>\n<p>What\u2019s more, Cheng says that C.R.E.A.M is working to expand the horizons of liquidity even to other chains. <\/p>\n<h3><span class=\"ez-toc-section\" id=\"Capital_Efficiency_Squared\"><\/span>Capital Efficiency Squared<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If Ethereum doesn\u2019t care about the borders between assets and protocols, then why can\u2019t the same liquid efficiency logic <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ly to all Ethereum Virtual Machine-compatible chains? This would allow for loans, undercollateralized loans, and flash loans across multiple ecosystems, bolstering liquidity across the space.\u00a0<\/p>\n<p>\u201cCross-chain lending. That\u2019s the thing where people stop and say, \u2018wait, hold on, what?\u2019\u201d Cheng laughed. \u201cThat\u2019s something we\u2019re prototyping right now. It\u2019s not something on the roadmap, blah blah, we\u2019re prototyping it right now.\u201d <\/p>\n<p>In its early form, users would be able to deposit assets on C.R.E.A.M. V1 and unlock a loan on another chain, allowing them to access an alternative ecosystem while maintaining their assets on Ethereum. The more exotic lending types will come later. <\/p>\n<p>The problems in creating ideal, safe capital efficiency across all EMV-compatible chains are significant, but they\u2019re currently being worked through, says Cheng. Eventually the goal is to enable Yearn vaults to go cross-chain via a \u201c<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ized wrapper,\u201d which could expand the tools available to vault strategists by orders of magnitude. <\/p>\n<p>It\u2019s a vision of open liquidity and capital efficiency enabled, in part, due to an open developmental ethos across the DeFi Voltron: <\/p>\n<blockquote><p>\u201cWe have so many channels open. If you had my Telegram open\u2026 so many working groups. I think that story is underplayed. The whole idea of this merger, it\u2019s so powerful \u2014 we can hop in these channels at any time, ask each other anything. It\u2019s letting us move so quickly.\u201d<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/c-r-e-a-m-launches-iron-bank-flash-loans-eyes-cross-chain-capital-efficiency\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# C.R.E.A.M. launches Iron Bank flash loans, eyes cross-chain capital efficiency &#8221; In a press release today, C.R.E.A.M. Finance announced a new feature for (and, by proxy, an unofficial relaunch of) Iron Bank, the protocol-to-protocol lending platform designed for flash and undercollateralized loans.\u00a0 C.R.E.A.M., which founder Leo Cheng describes as \u201cthe yolo-est Compound fork,\u201d is&#8230;<\/p>\n","protected":false},"author":1,"featured_media":221902,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDQvY2I4ZjEwZTItOTdiMS00NDIzLTlmYzktMzEzNDg3M2I4ZjY0LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74868,74891,77595,74355],"class_list":["post-221901","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-defi","tag-ethereum","tag-lending","tag-adoption"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/221901","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=221901"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/221901\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/221902"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=221901"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=221901"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=221901"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}