Lending in DeFi has long centered on shared liquidity pools. They’re simple, but they also lock capital in passive queues, rely on utilization-driven curves, and force one‑size‑fits‑all parameters.

Floe’s modular lending protocol flips the model: instead of depositing into a pool, lenders and borrowers post “intents”: structured, signed offers that state exactly what they want. Third‑party matchers/solvers pair compatible intents and execute the trade on-chain, earning a commission.

What changes with intents?

• Dynamic pricing, negotiated up front. Rates emerge from lender min vs borrower max interest.

• Fine‑grained risk. Each side specifies duration, LTV, min fill, expiry, and even custom conditions.

• Capital unlocked. No pool idle times; capital moves when intents match.

• Composable by design. Use pre/post hooks to chain actions (e.g., “after borrowing, deposit to a yield vault”).

• Gas efficiency & UX. Off‑chain coordination plus gas abstraction (borrowers don’t need ETH) smooths the path.

How “intent matching” works

• Lenders post LendIntent, borrowers post BorrowIntent.

• Matchers check compatibility (rates, LTV, amounts, duration, market).

• On match, a Loan is created with agreed principal, rate, duration, and collateral tracked on-chain.

• Loans can be partially repaid; collateral can be topped up/withdrawn; liquidation is partial to reduce slippage.

Why this matters

• No pool inefficiency → better capital productivity.

• Better price discovery → market‑driven rates, not a single curve.

• Flexibility → complex strategies via conditions & hooks.

• Composability → integrates with vaults, DAOs, other protocols.

Key takeaways
Floe turns lending into a true marketplace—customizable, composable, and efficient—by matching intents instead of filling pools.