Diffusion Labs

Diffusion Labs is a research lab focused on the intersection of software engineering and financial risk analysis. Their core mission lies in developing innovative solutions within the lending and borrowing space. Notably, they have created a protocol called "Valent" designed to facilitate fixed-rate, fixed-term loans and borrowing without the need for liquidation events or oracles (decentralized data providers). Diffusion Labs' approach aims to address potential drawbacks associated with traditional DeFi lending protocols. Liquidation events can force borrowers to sell assets abruptly due to market fluctuations, while oracles can introduce vulnerabilities into the system. Their research explores alternative models that could potentially enhance stability and security within DeFi lending.