After reading the first update of Soul Labs' @0xSoulProtocol, I have some unspoken thoughts. We've all navigated the multi-chain world, and the biggest pain point is that funds feel like they're trapped in isolated cages. You deposit ETH on Aave Ethereum and see a good interest rate on Compound on Arbitrum, but you can't directly use that ETH as collateral to borrow. You're forced to go through the cumbersome and expensive process of withdrawal, cross-chain, and deposit. The Soul Labs protocol targets this core pain point. Its vision isn't to recreate a more powerful Aave or Compound, but to serve as the glue that connects all major lending protocols, building a unified cross-chain credit layer. This raises an interesting question: Are Soul and Aave V4 in competition? My understanding is that, far from competing with each other, they complement each other. Think of Aave V4 as building a more efficient highway network within a country. However, this doesn't solve the problem of free flow of goods (liquidity) across borders (and protocols). What Soul Labs aims to do is establish a set of internationally accepted customs and logistics standards, allowing goods stored on Compound to be easily used as collateral for loans on Aave. Thus, Soul Labs's position is to act as an enabler and connector, allowing existing DeFi building blocks to be combined to create more powerful functionality, ultimately benefiting our users through greater capital efficiency and simplified operations.
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