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.
C.R.E.A.M., which founder Leo Cheng describes as “the yolo-est Compound fork,” is a money market designed to cover assets that are “underserved” and allow for greater capital efficiency for decentralized finance (DeFi) power users, listing assets such as Yearn vault tokens and liquidity pool tokens.
“We’re adding assets that people want to have, but others may be scared of,” said Cheng.
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’s equivalent of the $10 trillion corporate debt industry, allowing the principle of “corporate credit” to function between whitelisted protocols.
Some critique the idea conceptually — undercollateralized lending is still an exotic niche in DeFi — and those critics took a victory lap in