Problem Statement
The current landscape of on-chain money markets faces significant limitations in providing inclusive collateral options, particularly for Memecoins. This exclusion prevents many users from effectively leveraging their digital assets for borrowing and lending purposes. Additionally, liquidity suppliers often encounter suboptimal yields, while borrowers face wider spreads and higher borrowing rates, resulting in inefficiencies and reduced participation. Addressing these gaps is essential to creating a more accessible and efficient ecosystem, optimizing yields for suppliers, and offering competitive borrowing rates for users.
Overview
BlonkFi is designed to optimize the borrowing and lending experience in on-chain money markets by leveraging Blast’s native yield mechanism. This approach enhances returns for liquidity suppliers while offering tighter spreads and more competitive borrowing rates for borrowers. A key challenge in the current market is the limited availability of money markets that accept Memecoins as collateral, a gap BlonkFi aims to address effectively.
