DeFi Digest: Gearbox and Automata

Overcollateralization has been the standard implementation of lending protocols in DeFi. Because there is no viable credit system in DeFi, due to the pseudonymous/anonymous nature of blockchains, undercollateralized borrowing is still an underexplored feature. 

Some projects like Cream Finance and TrueFi are currently exploring unsecured credit through some forms of KYC and whitelisted borrowing. Gearbox is another project with a slight spin on the undercollateralized lending concept.