AMM vs CLOB debate will completely change
I think smart collateral and smart debt unlock two distinct use cases
The first is for active market makers. A key factor for their profitability is cost of capital per unit of liquidity provided. Hence capital efficiency is everything for them. Smart collateral and smart debt massively increase that efficiency, reaching levels we haven't seen before. It's a new primitive because this kind of composability can only exist in DeFi and couldn't exist in tradfi. I even believe this newly enabled capital efficiency will make it much more attractive for market makers to actively provide liquidity on Fluid AMM rather than on CLOB markets. This kind of composablity and through extension capital efficiency cannot exist on CLOBs.
The second use case is for the passive borrower. This user simply wants to minimize borrowing costs and in exchange for that lowered cost is comfortable holding their collateral in either WBTC or cbBTC, and their liability in stables like USDC or USDT for example
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