Building a Decentralized Lending Protocol: Meet the CEO of Lendfinity
DeFi moves fast, and Lendfinity keeps you one step ahead. The project started as a simple hackathon idea and has grown into something much bigger—providing a unique, efficient way to lend and borrow digital assets on the Internet Computer (ICP) and Bitfinity networks.
Lendfinity takes a straightforward approach to solving complex problems, making it an interesting project to watch as the DeFi landscape grows.
But how did Lendfinity get started, and what sets it apart from the competition?
In a recent interview with Gastão Faria. the CEO of Lendfinity, we got a deeper look into the story behind the platform and what they’re aiming to achieve. The insights are fascinating, especially for those who want to understand what it takes to build and scale a DeFi project from scratch.
Exploring Lendfinity: A New Chapter in Decentralized Lending
Q: Can you explain how the idea of Lendfinity came about?
Gastão: We participated in the first ICP hackathon here in Portugal, coming from a background in the EVM space. Initially, we were leaning towards creating an algorithmic stablecoin but soon pivoted to building a lending protocol, seeing its potential and relevance. Winning the hackathon was a key validation, and when we learned about Bitfinity, the ICP EVM chain, it became clear that launching on that platform was a perfect fit for our vision.
Q: What have you implemented to overcome the technical hurdles, especially in ensuring the scalability and performance of your lending protocol?
Gastão: To ensure scalability and reliability, we decided to follow Aave’s proven and robust model. Aave is the largest lending protocol, battle-tested over years, which gives us confidence in delivering top-tier performance and security. For the unique challenges posed by the Internet Computer, we’ve been fortunate to have strong technical guidance from the ICP Hub team, especially Tiago, whose insights have been instrumental in our progress.
Q: Security is key in DeFi. How does your protocol address the security concerns, particularly in light of recent exploits in other DeFi projects?
Gastão: Security is always a top priority, and by building on Aave’s V3 smart contracts, we significantly reduce the risk of exploits. Aave V3 has been thoroughly audited by six independent firms, all concluding that it meets high safety standards. Since its release in early 2022, it has maintained a flawless security record, which is a testament to its reliability.
Q: How does Lendfinity compete with protocols on other blockchains?
Gastão: What sets Lendfinity apart is our unique asset pool and strategic focus. We aim to deliver a familiar DeFi experience but with a distinct advantage: offering assets that no other lending protocols currently support.
Our initial focus is on ICP’s ICRC-1 and ICRC-2 tokens, which positions us to capture the growing ICP ecosystem. Additionally, in the future, we plan to include Bitcoin runes as tradable reserves, further diversifying our offering.
Q: What partners have you onboarded so far to ensure a strong go-to-market strategy?
Gastão: Since day one, we’ve been collaborating closely with the ICP Hub in Lisbon, our partner from the hackathon days.
We also have solid partnerships with Bitfinity, being early developers on their chain, as well as with Omnity and Chapswap, key players in the Bitfinity ecosystem. We’re in active discussions with several other major projects on the ICP mainnet, so stay tuned as we announce more partnerships soon.
Q: Looking beyond your protocol, where do you see the future of DeFi on ICP?
Gastão: ICP is an exciting and open frontier for DeFi builders, offering two key advantages.
First, it provides a feature-rich blockchain that goes beyond the limitations of traditional EVM environments, enabling true innovation.
Second, the DeFi space on ICP is still in its infancy, with a TVL (Total Value Locked) under $50M. This represents a massive growth opportunity for those willing to build the foundational DeFi infrastructure that the ecosystem is currently lacking.
Lendfinity’s Unique Approach to DeFi
Lendfinity isn’t just another lending protocol; it’s trying to be something different. By focusing on ICP and Bitfinity networks, Lendfinity taps into a growing ecosystem that’s still relatively new in the DeFi world. The platform aims to provide users with access to unique assets like ICP’s ICRC-1 and ICRC-2 tokens, expanding options that most other protocols don’t yet support.
Security-wise, Lendfinity leans on Aave’s battle-tested smart contracts, ensuring the safety of users’ funds. This approach offers peace of mind in a space where exploits are all too common. With partnerships and strategic alliances already forming, Lendfinity seems to be building a solid foundation for long-term growth.
What really stands out, though, is Lendfinity’s ambition. Their plan to introduce Bitcoin runes as reserves is intriguing and could help them differentiate themselves further from other lending protocols. Focusing on a smaller, emerging ecosystem like ICP means they’re well-positioned to capture a growing market rather than trying to compete in an already saturated space.
A Future in DeFi on ICP
DeFi on ICP is still in its early stages, but the potential for growth is huge. Lendfinity is one of the projects laying the groundwork for what could become a major player in the DeFi world. With a clear vision and a strong technical foundation, Lendfinity is positioning itself to be a significant part of the future of decentralized finance.
If you’re interested in DeFi and want to explore new opportunities, Lendfinity is worth keeping an eye on. They’ve shown that a simple idea, backed by solid execution, can evolve into something much more—something that might just shape the future of DeFi on ICP and beyond.
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About The Author
Gregory, a digital nomad hailing from Poland, is not only a financial analyst but also a valuable contributor to various online magazines. With a wealth of experience in the financial industry, his insights and expertise have earned him recognition in numerous publications. Utilising his spare time effectively, Gregory is currently dedicated to writing a book about cryptocurrency and blockchain.
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Gregory, a digital nomad hailing from Poland, is not only a financial analyst but also a valuable contributor to various online magazines. With a wealth of experience in the financial industry, his insights and expertise have earned him recognition in numerous publications. Utilising his spare time effectively, Gregory is currently dedicated to writing a book about cryptocurrency and blockchain.
