The Power of Credit Delegation

Undercollateralised loans in DeFi have been an increasingly popular way to open up access to liquidity without needing existing capital, and Native Credit Delegation from Aave V2 expands on this by enabling a depositor to deposit funds in the protocol and earn interest, and delegate borrowing power (i.e. their credit) to another user. Credit Delegation opens up DeFi as a source of liquidity for the rest of finance, and this interoperability makes CD a powerful tool.