Oracle-free lending protocols, including Ajna, Ethereum Credit Guild, Metastreet's Automated Tranche Maker, and Blur/Paradigm's Blend, have recently gained attention in the decentralized finance (DeFi) space. Unlike traditional DeFi lending markets, these protocols eliminate the need for centralized oracles and allow lenders to evaluate risks and determine collateral requirements on their own. Lenders choose the assets they accept as collateral, the quoted asset for borrowing, and the collateralization ratio for liquidation. The absence of a universal oracle decentralizes risk and prevents insolvency, as lenders are responsible for their own loans. While these protocols may require more effort, they provide an opportunity for innovation, customization, and experimentation in the lending space. By leveraging existing services and automation, the user experience and risk profile can resemble that of established platforms, making oracle-free protocols like Ajna appealing despite the added complexity.

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