> For the complete documentation index, see [llms.txt](https://docs.untitledbank.co/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.untitledbank.co/readme/problem-statement.md).

# Problem Statement

Decentralized finance (DeFi) has transformed traditional financial systems by removing intermediaries and relying on smart contracts for trustless transactions. While DeFi offers numerous advantages over traditional finance, including transparency and accessibility, existing lending platforms often face limitations. which we identified as such:

* **Limited asset diversity and accessibility on existing platforms, creating barriers for regular retail users.**
* **Low capital efficiency due to underutilized assets in a fragmented ecosystem.**
* **Lack of cross-chain interoperability, restricting liquidity and access to assets across different chains.**
* **DAO-centric risk management potentially limiting scalability and efficient decision-making.**

Untitled Bank aims to address these issues with a interoperable modular architecture that leverages a Layered Bank system to offer a more inclusive and flexible approach to decentralized lending.


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