Decentralized finance (DeFi) is one of the new hot topics in the crypto world, DeFi technology is one of the most front lines of innovation in the blockchain space!, DeFi was popularly called open finance because it launches the open banking movement where individuals don’t need a central party for financial services. It’s time to look into one of the most important topics DeFi lending/borrowing platform and their benefits.
Before getting into the topic, have you ever heard about the term DeFi? let's see the quick definition of DeFi
DeFi stands for Decentralized Finance and it is a concept to offer almost all the financial services on the blockchain network. Decentralized Finance is accomplished by a combination of Decentralized Applications(DApps) with smart contracts techniques! DeFi is the process of controlling your own assets, Today nearly DeFi based projects are being built on Ethereum, DeFi can be combined, modified, and integrated according to your needs.
Nearly most of us would be familiar with the traditional methods of borrowing and lending! In DeFi lending/borrowing platform, investors and lenders are provided with a loan or deposit their fiat for in interest through a distributed system in a decentralized application (Dapps), DeFi lending/borrowing platforms give assurance to fill up the lags in the traditional banking, Both lending and borrowing make use of DApps, Smart contracts, among other DeFi protocols.
DeFi lending/borrowing platform have a collaboration of blockchain network and smart contracts, recently all the financial services will executive the decentralized, permissionless and exceptionally encrypted process! By this decentralized platform, a borrower can take a loan directly! It’s called a DeFi P2P lending. By using Peer-to-peer(P2P) lending borrowers can easily receive financing from individual investors who are favourable to lend their very own money for an acknowledged interest rate.
These platforms are doesn't need a central authority, the involvement of Smart contract can handle the lending/borrowing assets and save it in the blockchain so everyone can easily verify it. Therefore it offers complete transparency in various funds.
Outstanding Speed, Utility & Flexibility:
In DeFi lending/borrowing platform you can need to create an account on the particular platforms and also you can have access in a crypto wallet and it takes a few minutes to create smart contracts, All these activities can be verified through your mobile phones
Asset prices can be defined by Market Demands!, So the DeFi lending/borrowing platforms can attract more users quickly due to the ease of access can give more investment opportunity and also give transparency in financial disclosure.
Resistance and Immutability:
Decentralization assures that all the transactions can be maintained in the blockchain network, once all the records are registered it can be saved in blockchain promising immutability.
Reward for Long-term Investment:
A long-term investor can lend their asset in the DeFi lending/borrowing platforms they can earn an additional amount from their interest rates!
It is one of the most popular platforms and provides open access to smart contract built on the ethereum blockchain. It allows both lenders and borrowers can interact directly with the protocol and earn some floating interest rates!.
Recently, Compound launch their own governance token called “COMP” it provides token holders voting rights, protocol updates and also added new assets for lending and borrowing and more. It supports a wide range of assets issued by an Ethereum.
Maker is a unique DeFi lending/borrowing platform that allows it borrows only on DAI token and it is an open-source protocol that enables the users who have ETH to access in a MetaMask to lend. DAI is a stablecoin that is pegged to US dollars that allows the users to lend and borrow instantly.
This platform offers the user interest rate at 4.6 % to 9.05% it allows ETH, WBTC, USDC, and BAT holders to lend and borrow on their protocol.
InstaDapp is a multi-function purpose DeFi platform that can manage the digital assets, It provides wide varieties of DeFi services like lending, borrowing, leverage and more. You can easily access InstaDapp from any time, anywhere in the world. You have access to your private key and the internet.
It allows the DeFi users to manage to optimize and deploy their assets to get the best returns across the protocols and it provides a user-friendly dashboard that allows the users to manage DeFi Investments.
Aave is an open-source DeFi lending protocol, In this platform lenders can deposit their cryptocurrencies in the pool, it supports ETH, DAI, USDC, REP and more. It can adjust the interest rate by the basis of demand and supply, it indicates that more you hold tokens you can get a better interest rate.
Dharma is a decentralized platform, where lenders and borrowers can trade and transact with each other, It supports only two assets DAO and USDC, and operates an open-source and non-custodial wallet where the users have 100% control of funds, this platform allows up to $1,000 per day. It is the easiest and most secure way to invest and manage your money in DeFi.
We hope that now you all are cleared about what is DeFi lending/borrowing platforms and their benefits.
If you are a start-up or entrepreneur looking for a DeFi Development Company to launch our own DeFi lending/borrowing platform like Compound, Maker? then Developcoins is the right place for that!
As a pre-eminent DeFi Development Company, we have years of experience in the blockchain industry that helps us to develop the best DeFi development services and solutions at an appropriate cost! We offer the outstanding features and functionalities and assuring you to provide highly innovative and immutable DeFi solutions, the team of blockchain developers helps to offers you the best services to launch your own DeFi lending/borrowing platform!
we also provide a wide range of DeFi Development services which includes: