Unless you're in a really dry climate, an uninsulated and unsealed wall
will begin rotting immediately. Someday someone will have to rip it
all out and start over again.

Frame it with 2x4s. Insulate with R13 batts. Vapor barrier on the
room side of the studs. Then drywall. That's probably required by
code anyways.

Also, it's a good opportunity to seal the slab to wall joint before
applying the dryloc.

-rev