Seamless Protocol Launched on Base
![seamless-protocol-launched-on-base](https://static.simpleswap.io/blog/ad97cdee-6513-4269-92ec-3ffc53fe0b36.png)
Developers from several companies joined their efforts in creating Seamless Protocol. The fork of Aave v3 was officially launched on Base on September 11, 2023.
In the fast-evolving landscape of decentralized finance, a collaborative effort among developers has led to the creation of Seamless Protocol. This protocol operates on the layer-2 network called Base made by Coinbase. The protocol introduces an innovative approach to liquidity markets. It allows trustless smart contracts to seamlessly connect liquidity pools with predefined loan strategies.
Seamless Protocol is a fork of Aave v3. Through it, smart contracts can engage in undercollateralized borrowing on-chain: they can borrow money on a blockchain without needing to put up as much collateral as usual. Typically, in order to borrow, users need to provide a certain amount of digital assets as a security (collateral) to get a loan. But with undercollateralized borrowing, they can borrow more compared to the collateral they have.
Through Seamless Protocol, this happens with the help of borrowing strategies – specialized loans tailored for specific purposes, where each step is written on the blockchain. The main advantage of this system is its transparency: liquidity providers have full insight into how the borrowed funds will be employed, mitigating the risk of diversion for unrelated purposes.
With that, the protocol also allows for more traditional general-purpose loans. However, these loans follow the DeFi lending rules: they require overcollateralization. The combination of both types of loans fosters a comprehensive and adaptable DeFi ecosystem.
Seamless Protocol team firmly believes that its approach aligns more closely with the core principles of DeFi, emphasizing trust in code rather than relying on human-driven elements.
Developers of this product are from several companies: Seashell, RNG Labs, and Loreum Labs. and reached the $1 million in supplied liquidity milestone in a little over a week.
So far, Seamless Protocol has started gaining a reputation as a highly innovative and reliable project. Since it is still in the early stages of development, we have to wait and see what impact it has on the crypto industry.
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