Shorter Finance

After two digitals of months shipping Shorter Finance, Marc can still vividly recall his first AAVE inner meeting. He sat beside Stani, one of the founders who exuded energy and determination. The room was sparsely populated with only a few members, and the summer sunshine shone through the window, creating a sense that DeFi was about to be created by the team. At that moment, AAVE was bearing the formerly name — ETHLend.

About Shorterfinance

Shorter Finance is a dynamic financial services company that specializes in providing innovative solutions for individuals and businesses. With a strong emphasis on agility and adaptability, Shorter Finance offers a wide range of services including investment management, financial planning, risk assessment, and lending options. Their team of experienced professionals leverages cutting-edge technology and extensive market knowledge to deliver tailored financial strategies to their clients.

AAVE Shorter Finance broker Marc liquidity DeFi

About Shorterfinance

AAVE Shorter Finance broker Marc liquidity DeFi

Founding	Member	of	AAVE:	Why	I	Power	Shorter	Finance?
byAB	Digital,	Inc.
May	16,	2023	3:07	PM	|	4	min	read
After	 two	 digitals	 of	months	 shipping	 Shorter	 Finance,	Marc	 can	 still
vividly	recall	his	first	AAVE	inner	meeting.	He	sat	beside	Stani,	one	of
the	 founders	 who	 exuded	 energy	 and	 determination.	 The	 room	was
sparsely	 populated	 with	 only	 a	 few	 members,	 and	 the	 summer
sunshine	 shone	 through	 the	window,	 creating	a	 sense	 that	DeFi	was
about	to	be	created	by	the	team.	At	that	moment,	AAVE	was	bearing
the	formerly	name	—	ETHLend.
Marc’s	 involvement	 in	 this	 lending	 protocol	 inspired	 him	 to	 spot	 the
users’	 actual	 demands.	 DeFi	 is	 inevitably	 turning	 out	 to	 be	 an
essential	part	of	this	industry,	and	the	entire	team	went	all	 in	on	the
rapid	 growth	 of	 AAVE,	 ensuring	 its	 dominance	 on	 the	 DeFi	 list
unshakable.	 Marc	 smelled	 some	 brewing	 unstable	 flavors,	 which
awakened	his	pursuit	of	perfecting	a	100%	on-chain	DeFi	project.		
During	the	daily	usage	of	AAVE,	the	users	couldn’t	spare	themselves
from	 running	 into	 some	 issues	 in	 nature,	 occasionally	 a	 few	 tokens
with	low	liquidity	being	counted	into	the	pool	of	eligible	assets	to	lend
out,	 and	 there’s	 already	 a	 common	 sense	 for	 the	 crews	 to	 learn
lessons	from	the	collapsing	DeFi	projects.	
As	 to	 liquidity	 universality,	 AAVE	 underperforms	 in	 this	 aspect.	 The
router	 for	dual-way-providing	 is	blocked,	as	 the	 liquidity	provided	by
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an	average	liquidity	provider	cannot	bootstrap	Curve	if	it	has	already
been	 provided	 on	 AAVE.	 However,	 it	 is	 possible	 to	 offer	 liquidity	 to
Curve	 and	 AAVE	 simultaneously.	 Straightforwardly,	 Curve	 breached
the	staking	proofs’	 liquidity	restriction	 in	AAVE	and	Compound.	AAVE
cannot	 be	 considered	 a	 truly	 100%	 infrastructure	 running	 on-chain
since	 price	 feeding	 and	 interest	 quotation	 rely	 on	 external	 data
sources.	 In	 terms	 of	 some	 newcomers,	 such	 as	 CLever,	 their
liquidation	mechanism	has	somewhat	surpassed	AAVE.
In	Feb	2022,	a	whale	borrowed	30M	CRV	in	three	bundles	on	AAVE.	His
super	 huge	 position	 size	 caused	 the	 result	 of	 liquidation	 latency,
totally	breaching	 the	safe	 line	drawn	 in	a	centralized	way.	This	 saga
directly	exposed	AAVE	to	a	fatal	failure	—	a	sum	of	$1.6	million	valued
in	 bad	 debt,	 which	 was	 industry-wide	 regarded	 as	 an	 appetizer	 of
AAVE’s	deteriorating.	
Though	 the	 team	 is	 considerate	 to	 each	 member	 and	 obtains	 high
cohesion,	 as	 a	 developer	 who	 is	 the	 type	 of	 over-rigorous	 with
potential	flaws,	Marc	opted	to	leave	AAVE	to	go	for	the	self-propelled
protocol	that	can	ride	on	the	next	decentralized	finance	tide.	
Marc	met	the	fated	partner	Brady,	an	assertive	buddy	with	a	backdrop
working	in	the	broker	department	of	investment	banks	for	years,	in	his
current	 hacker	 bay	—	 IPI	 Labs.	 Being	 a	 senior	 player	 in	DeFi,	 Brady
pointed	 out	 that	 a	 significant	 part	 of	 the	 fundamental	 demands
classified	 from	 the	 actions	 on	 AAVE	 is	 for	 token	 loaning	 and
consequent	 sell-shorting	moves.	 During	 the	 brainstorms	with	 Brady,
Marc	 found	a	100%	DeFi	 infrastructure	can	offer	a	 “black	box”	 issue
solution,	 which	 all	 the	 diligent	 brokers	 have	 been	 seeking	 for	 a
century.
In	a	typical	scenario	of	stock	 loaning	through	a	brokerage,	 individual
stockholders	 lend	their	stocks	(for	example,	TSLA)	to	the	broker	at	a
yield	of	3%.	The	broker	 then	gathers	 the	stocks	 in	small	amounts	 to
lend	 them	 to	 traders	 who	 want	 to	 short	 the	 stock	 in	 a	 batch.	 The
trader	sets	up	a	short	position	at	a	rationalized	price,	which	includes
the	cost	of	 funding	 interest	at	6%.	The	stocks	become	a	debt	 to	 the
broker	 from	 the	 first	 day	 the	 stockholders	 lend	 them	 out,	 and	 the
broker	is	obligated	to	pay	the	yield.	However,	the	prescribed	yield	will
decrease	if	there	aren’t	enough	traders	borrowing	the	stocks	and	the
broker’s	income	cannot	meet	the	break-even	point.	The	entire	process
involves	two	subprocesses	that	occur	within	a	“black	box.”	Even	if	the
yield	 decreases	 according	 to	 the	 agreements,	 the	 stockholders	may
doubt	the	broker’s	loyalty,	potentially	leading	to	lawsuits.	
What	has	been	rooted	in	Brady’s	mind	for	years	drives	these	two	guys
to	find	out	a	solution	—	inadequate-collateral	loaning,	leveraged	fund
efficiency,	and	 transparent	position	management.	Marc	and	 the	 tech
crews	completed	the	first	demo	of	Shorter	Finance,	a	100%	on-chain
auto-broker	 protocol,	 in	 late	 2021	 and	 released	 the	 official	 online
version	 in	 June	2022.	 For	now,	 this	 innovative	protocol	 has	obtained
over	14K	active	wallets	from	10	countries	and	even	received	positive
feedback	from	Nigerian	crypto	users.	
A	series	of	listing	and	co-marketing	with	viral	projects	led	Marc’s	work
to	grab	headlines	 recently.	 It’s	no	 secret	 that	 the	native	governance
token	 of	 Shorter	 Finance	 has	 been	 achieved	 10	 times	 since	 the
mainnet	 launch,	 according	 to	 the	 price	 displayed	 on	Coinbase.	 The
industry	hasn’t	witnessed	competitors	like	Shorter	Finance,	which	can
run	all	the	leveraged	token	loaning	logics	with	inadequate	collateral	in
a	100%	decentralized	way.	Marc	claimed	he’s	started	seeing	Shorter
Finance	 invading	 the	 cognition	 of	 this	 industry’s	 derivative	 players
very	soon	at	Austin,	Consensus	2023.
Media	Contact
Company	Name:	Coinbase	Ventures
Contact	Person:	Shan	Aggarwal
Email:Send	Email
Country:	United	States
Website:https://coinbase-venture.com/
©	2023	Benzinga.com.	Benzinga	does	not	provide	investment	advice.	All	rights	reserved.
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