> For the complete documentation index, see [llms.txt](https://docs.feeder.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.feeder.finance/products-and-services/peer-to-peer-lending/the-expansion.md).

# The Expansion

![](https://477838308-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MYOJi0paschHKe-LQlk%2Fuploads%2F1wIKRrh7IpzHGqzj9oeZ%2FFeeder%20Lending%20Expansion%20Roadmap.jpg?alt=media\&token=9f71b04c-363a-4409-ba8f-9aecbb6026ca)

Throughout our updates and releases, Feeder Finance P2P Lending will grow its use cases from simple token collateral/lending to NFT lending and finally Decentralized Lending Exchange (“DLEX”).

**Here is the flow of improvements:**

Q1-2022

* Launch P2P Lending with Lender and Borrow Offers and Bids 

Q2-2022

* Marketplace created for the trading of loans; through its embedded NFT technology 
* Adding support for lending and borrowing of NFTs

Q3-2022

* Adding DLEX functionality, which in simple terms are a pooled P2P lending structure allowing exchanging of tokens between lenders and borrowers using fixed terms set by lenders. This would essentially allow lenders to “be their own bank/pawnshop”.

**How do any of these products/features improve DeFi?**

![Feeder Finance P2P Basic Flow](https://477838308-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MYOJi0paschHKe-LQlk%2Fuploads%2Fz38UQ274PRCFqujp81t9%2FFeeder%20Finance%20P2P%20Lending%20Basics.jpg?alt=media\&token=83107a0e-07ab-4432-984c-fa3f96d9378f)

* **Basic P2P Lending:** Allows any token to be lent or borrowed, creating liquidity for investors that otherwise would not be possible. 
* **Better Economics with Receipt Tokens:** As the collateral grows in value/quantity, borrowers are able to reduce their borrowing cost; in some cases even eliminate it. In turn, lenders are also able to demand higher rates. A win-win scenario for both parties.
* **Insuring Yield Farming:** As investors yield-farm with vaults, they could see those assets as risky, be it from price fluctuations or exploits, and seek insurance options. Taking out a loan effectively offers partial insurance coverage of those assets.
* **The Loan Marketplace:** P2P lending has one pain point, it locks up capital for the lender. The launch of the marketplace not only gives the lender liquidity but also allows for long-term loans to be created as lenders would be more willing to lend if they are able to exit prematurely.  
* **DLEX:** Creating loans on an individual basis allows for opportunistic lenders or borrowers to strike advantageous deals. Nonetheless, lenders wanting to scale their lending business could opt for a pooled option where terms are set and funded in advance, letting borrowers come in with assets that meet the terms and automate the lending process.

![](https://477838308-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MYOJi0paschHKe-LQlk%2Fuploads%2FREesvt6YVg9PS7ireupQ%2FDLEX.jpg?alt=media\&token=7c99c1cf-a495-4e08-bd3d-8a77af5787fe)