> 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

![](/files/dsjVfsxKrUJmNO7HJH6H)

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](/files/8E27VxpHRGPnf5fFb1ua)

* **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.

![](/files/lZfnDeLK6RKtEgiJsIwS)