Imagine walking into a bank that knows your entire financial history at a glance, can evaluate any asset you own in seconds, and tailors loan terms specifically to you – all without human bias or delays. Now imagine this bank is available 24/7, can be accessed through a simple chat interface, and allows you to negotiate better terms in real-time. This isn't science fiction, this is Malone, our Peer-to-Agent (P2A) Loans system.
Malone is your personal AI loan agent that's changing how you access capital in DeFi. When we started Tren Finance back in late 2023, our vision was always to unlock liquidity for all on-chain assets. While our protocol has already made significant progress in (re)collateralizing previously idle assets, the manual risk assessment process has been a bottleneck – each new asset requires extensive evaluation and the creation of dedicated isolated modules. This meant many long-tail assets remained unsupported despite having real value.
Thanks to the breakthroughs in artificial intelligence, we've eliminated this constraint. Malone allows users to propose any on-chain asset for collateral, with risk assessments and loan distribution happening instantly through autonomous AI agents – a complete paradigm shift that will transform how you access capital in the decentralized economy.
Decentralized finance introduced peer-to-peer (P2P) lending as a way for individuals to lend and borrow crypto assets directly without traditional intermediaries. Early P2P lending platforms like ETHLend and Dharma allowed users to post loan offers or requests and await a match with a counterparty. While innovative, this direct matching model revealed significant inefficiencies that limited its scalability and user adoption. Borrowers often faced slow, cumbersome loan origination processes and rigid requirements, while lenders dealt with idle capital and manual risk vetting.
As a result, the DeFi lending sector evolved towards pooled models like Aave and Compound to mitigate some of these issues. By late 2021, DeFi lending protocols amassed close to $50 billion in collateral value, a surge that coincided with moving beyond pure P2P designs. Yet, even with pooled lending, fundamental challenges remain. Finding someone on the other side of the loan is inefficient and time-consuming. Lenders must manually review requests, assess collateral risk, and negotiate terms – creating friction and delays. ETHLend (the precursor to Aave) learned this the hard way: its marketplace required manual matching of offers, which led to liquidity issues and under-utilization of funds.
Meanwhile, protocol-based lending restricts which assets can be used as collateral through rigid parameters and oracles. Even platforms like Aave and Compound only support a few dozen assets out of thousands in the crypto ecosystem.
Malone solves these challenges by putting an AI agent in the role of your personal bank manager – one that's available 24/7, knows your complete financial history, and can instantly evaluate almost any on-chain asset. We have given Malone its own onchain wallet, allowing it to directly evaluate, negotiate, and execute loans without human intervention.
Imagine having a personal banker who instantly understands your financial situation, recognizes the value of all your digital assets – from NFTs to vested salary streams to emerging project tokens – and crafts loan terms specifically for you. That's what P2A loans brings to DeFi through Malone.
Malone removes intermediaries and rigid protocol parameters, replacing them with an intelligent AI agent capable of personalized decision-making:
Connect your wallet and initiate a conversation with Malone
Discuss your loan requirements in natural language – no complex interfaces to navigate
Malone assesses your on-chain history and collateral in real-time
Receive personalized loan terms based on your specific situation
Negotiate directly with Malone if you're not satisfied with the initial offer
Malone executes the loan from its own wallet once terms are agreed upon
The entire process happens in minutes, not hours or days, and Malone is available 24/7 to serve your borrowing needs.
What makes Malone truly revolutionary is that no two loans are ever the same. Each interaction is uniquely tailored based on the borrower's specific circumstances:
Pristine repayment history? Expect favorable interest rates and higher LTVs
Active Tren Finance user providing liquidity to XY? Receive preferential terms as a valued ecosystem participant (Yes, Malone has a slight bias to users of Tren)
History of late repayments? Malone might offer stricter conditions but still provide access to capital
Previous involvement in exploits or suspicious activities? Malone may decline the loan entirely
This personalization extends beyond simple credit scoring. Malone analyzes complex patterns across your entire on-chain presence, considering factors like:
Transaction history and patterns
Interaction with known protocols
Lending and borrowing behavior
Asset holding duration
Governance participation
Liquidity provision history
Traditional lending/borrowing protocols can only support a limited set of assets with established price oracles and sufficient liquidity. Malone breaks through this limitation, able to assess and provide loans against virtually any on-chain asset:
NFTs from established and emerging collections
Vested token streams and locked tokens
Project tokens from new or smaller protocols
LP positions across any DEX
Yield-bearing tokens from any protocol
Governance tokens with limited liquidity
The AI agent evaluates these assets not just on current market prices but on deeper risk factors like historical volatility, liquidity depth, and project trajectory - enabling sophisticated risk assessment and valuation.
Perhaps the most fascinating aspect of P2A Loans is the ability to negotiate terms directly with Malone. Unhappy with the initial offer? Make a counteroffer:
Request a higher loan-to-value ratio
Ask for a longer repayment period
Propose a different interest rate structure
Offer additional collateral for better terms
Malone evaluates your proposal in real-time, considering both your specific circumstances and current market conditions. It may accept your terms, present a modified counteroffer, or explain why it can't accommodate your request – creating a truly interactive borrowing experience.
Unlike traditional P2P platforms where you might wait days for responses or where terms are rigid and non-negotiable, P2A loans creates a dynamic conversation around your financial needs.
Malone introduces unprecedented flexibility while maintaining sophisticated security through its data-driven approach. Unlike traditional lending systems, P2A operates with pre-funded assets (ETH, stables, etc.) held in the agent's wallet. These assets are then used as collateral to mint XY, which is then used to facilitate loans across the ecosystem.
Our system employs a comprehensive risk assessment framework that draws from multiple data sources, each weighted by confidence scores. On-chain data carries the highest confidence, complemented by subgraph data, API integrations, and market sentiment analysis. This multi-layered approach ensures thorough risk evaluation for each loan.
A key advantage of Malone is its continuous loan monitoring system. Unlike traditional platforms that only assess risk at origination, our AI agents actively track market conditions and loan performance. When conditions change, agents can proactively alert borrowers or suggest adjustments to prevent liquidations. Through reinforcement learning, Malone continuously refines its risk assessment models, learning from each loan to enhance future decision-making.
Beyond the financial innovation, P2A loans addresses one of DeFi's greatest challenges: accessibility. Many potential users find existing interfaces intimidating and complex. By allowing natural language interaction, Malone makes DeFi more approachable while ensuring users remain informed and empowered.
Through conversational AI, users can ask questions and receive clear explanations about important concepts like collateralization ratios, liquidation thresholds, and interest models. This interactive approach helps users better understand the mechanics of their positions while the agent handles the complex technical operations behind the scenes.
The P2A system strikes a balance between sophistication and simplicity - users maintain full visibility and control over their financial positions while benefiting from an intuitive interface that lets them communicate their goals in plain language. This creates a more accessible DeFi experience that doesn't compromise on transparency or user agency.
Similar to our main protocol, Malone utilizes reinforcement learning algorithms to analyze the outcome of every loan to learn from the experience and refine future loans. This creates an adaptive system that continuously enhances its capabilities through real-time analysis.
The system's learning encompasses several key areas:
Risk Assessment Accuracy: The system tracks how well it predicted asset volatility and borrower behavior, constantly tuning its risk models to more accurately price loans.
Negotiation Effectiveness: Malone learns which terms are most likely to be accepted by different user profiles, allowing them to make more appealing initial offers.
Market Adaptation: By analyzing market trends and their impact on loan performance, the system develops an increasingly nuanced understanding of how external factors affect various asset classes.
User Experience: Interactions with borrowers provide insights into common questions, concerns, and preferences, enabling Malone to improve their communication style and address user needs more effectively.
Unlike human risk committees that might analyze data quarterly, our AI network evaluates performance metrics in real-time, implementing improvements continuously. This means the P2A system evolves and improves with each interaction.
The implications of this learning capability are profound: as more users engage with Malone, it becomes exponentially smarter at balancing risk and opportunity across an ever-wider range of assets and borrower profiles.
Malone isn't just a single AI agent but rather a coordinated network of specialized agents, each mastering a different aspect of the lending process:
Supervisor: The Supervisor oversees the entire lending process, ensuring all other agents work in harmony. It monitors each step of the loan origination, validation, and management process, intervening when necessary to resolve conflicts or edge cases. Think of it as the executive decision maker that maintains the integrity of the entire system.
Token Identifier: One of the most powerful capabilities of Malone is its ability to work with virtually any on-chain asset. The Token Identifier Agent specializes in recognizing and classifying tokens, whether they're standard ERC-20s, LP tokens from obscure DEXs, or complex derivative tokens. It can identify the underlying protocol, understand tokenomics, and determine appropriate valuation methods for each unique asset.
Risk Analyzer: Once an asset is identified, the risk analyzer conducts a comprehensive risk assessment. It analyzes liquidity depth, volatility patterns, smart contract security, project fundamentals, and correlation with other assets. This agent continuously monitors market conditions that might affect collateral value, providing early warnings and risk mitigation recommendations.
Loan Calculator: This agent acts as the primary negotiator, analyzing your collateral and on-chain history to craft personalized loan terms. It dynamically calculates appropriate interest rates, loan-to-value ratios, and duration options based on your profile and the specific assets you're using as collateral.
Transaction Handler: The Transaction Handler takes care of the on-chain execution of all borrowing operations. It optimizes gas usage, ensures transaction finality, and manages the technical aspects of loans, including collateral locking and loan disbursement. This agent operates its own wallet and can directly interact with blockchain networks to execute agreed-upon terms without intermediaries.
Loan Management Agent: After a loan is issued, the Loan Management Agent takes over ongoing monitoring and servicing. It tracks loan health, provides repayment reminders, processes early repayments, and manages any necessary collateral adjustments. If market conditions change dramatically, this agent can proactively suggest refinancing options or risk reduction strategies before problems occur.
Reflection Agent: This agent learns from past loan experiences to optimize future terms. By analyzing successful and unsuccessful loans, borrower behavior patterns, and market conditions that affected loan outcomes, the Reflection Agent continuously refines Malone's decision-making models. This ensures that each new loan benefits from the collective wisdom gained from all previous interactions, making Malone increasingly sophisticated in balancing risk and opportunity.
These agents don't operate in isolation but communicate continuously through a secure orchestration layer, ensuring all decisions are coordinated and consistent. The result is a seamless experience for users, with the complexity of the multi-agent system hidden behind a simple, conversational interface.
We understand that different users have different needs and comfort levels. That's why we've created a dual approach to borrowing that offers both familiarity and innovation:
Peer-to-Protocol: Advanced Features and Scale
Our traditional borrowing interface provides access to Tren Finance's full suite of advanced features. Behind the scenes, this process is enhanced by our AI agent network, which continuously optimizes risk parameters, interest rates, and collateral factors to ensure maximum capital efficiency and protocol safety.
The Peer-to-Protocol option is ideal for users who:
Need to facilitate larger loan amounts
Want to utilize advanced features like Hooks and Flash Mints
Seek to implement complex DeFi strategies
Peer-to-Agent: Personalized and Flexible
For those seeking a more personalized experience or looking to use non-standard assets as collateral, Malone opens up entirely new possibilities. Through a simple chat interface, you can propose loans against virtually any on-chain asset – from LP tokens to NFTs to project tokens that aren't supported elsewhere.
The Peer-to-Agent option shines for users who:
Hold diverse or unique digital assets
Want customized loan terms based on their specific situation
Prefer a conversational interface over technical parameters
Seek to negotiate and refine loan terms in real-time
Both approaches leverage the power of our AI agent network, ensuring consistent risk management and user protection regardless of which path you choose. There is no right or wrong way to borrow on Tren Finance, only the way that works best for your individual needs.
The future of DeFi borrowing isn't peer-to-peer or peer-to-protocol, it's peer-to-agent. By combining the flexibility of human judgment with the efficiency and availability of smart contracts, Malone represents a fundamental evolution in how we access capital in the decentralized economy.
Just as Aave moved over to the pool model as they saw this as the next iteration of borrowing on-chain, we believe that Malone is the next evolution, allowing users to borrow against nearly ANY on-chain asset while receiving personalized terms based on their unique financial history.
Malone takes borrowing a step further by removing friction while adding personalization and expanding asset support beyond what any current protocol can offer. This revolutionary approach transforms how users can unlock the value of their digital assets.
While Malone is not yet live, it's currently in its final stages as we undergo internal testing and tweaking to ensure everything functions correctly. In the coming weeks, we will look to roll this out to the public for use. Stay tuned for more details on our initial launch and how you can be among the first to experience Malone – the revolutionary approach to DeFi borrowing that puts an AI agent in your corner.
Tren Finance is the first AI stablecoin borrowing protocol, where a network of specialized agents manages the entire protocol. Our agents work in unison to handle everything from borrowing parameters and liquidations to collateral management and reward distribution, removing human bias from DeFi operations. Through this autonomous system, users can (re)collateralize their LP tokens, money market deposits, and (re)staked positions, unlocking billions in idle liquidity. Built by a team of DeFi veterans with experience from leading protocols like MakerDAO, Ajna, Binance and Venom, Tren is paving the way for a more efficient and interconnected DeFi ecosystem.
Zac
