In the DeFi stack, stablecoins, automated market-makers (AMMs), and lending markets are the core financial primitives that unlock the ability to create unique permissionless banking tools and applications. Using these building blocks, money markets such as Compound, Maker, and Synthetix, have paved the way to allow users to get a line of credit in exchange for putting up collateral - which is received by the borrower in the form of a synthetic token (usd-pegged stablecoin). These protocols are essential to the broader ecosystem as they create leverage and expand the supply of capital to facilitate risk-taking. However, they’re not very capital efficient and this is where Inverse Finance differentiates themselves from the other protocols.