The real challenges of building an onchain lending protocol, and how @MoonwellDeFi tackled them. 🚀 CDPod Ep. 5 with @LukeYoungblood is a masterclass in what it takes to do onchain lending right. Here’s what we learned 🧵

Start with something battle-tested, but don’t stop there. As Luke explains, they started by using a Compound V2 fork. It’s battle-tested, holds billions in TVL, and has been running for years. But as he shows, the real work begins after the fork: adding governance, new features, and scaling to new chains.

Onchain lending means trustless lending, which needs trustless enforcement. Moonwell uses overcollateralized, peer-to-peer markets enforced by smart contracts. No loan officers. No seed phrases. No bailouts.