Blockchain Technology

Top 10 DeFi Lending Platforms

 

Top 10 DeFi Lending Platforms

  • Decentralized Finance is the type of platform which helps to fill the rift that lacks in traditional banking.
  • The main purpose of these types of platforms is to provide financial support to its user.
  •  Defi lending platforms facilitate its user to lend their asset in return they will be getting some interest in the form of cryptocurrency.
  •  The main advantage of this type of platform is that any individual can take the loan without any KYC or AML checks.
  • Defi Platforms do not reveal their identity to third person this makes financial services more accessible.
  • These platforms are more secure than centralized lending platforms because of the usage of blockchain.

1) Aave

  • It is a decentralized, open-source, and non-custodial liquidity market protocol was users can participate as lenders and borrowers both.
  • This company was launched in 2017 by Stani Kulechov.
  •  Aave was started with a value of $60000 value of ETH token, at present, it values at $5 billion.
  •  It has created an Ethereum that offers borrowing within a smooth and user–friendly interface.
  •  It renders a dual defi tokens model i.e tokens and lends.

2) Maker

  • It is decentralized lending and borrowing platform that has become one of the best Defi lending platforms.
  • Makers are mainly known for Multi- Collateral DAI system.
  • It has more than $7 billion tokens locked in the smart contracts.
  • The Makers have two main assets: MKR and DAI.
  • It was launched in 2015 to overcome the volatility of cryptocurrency.
  • DOA is a decentralized lending application on the Ethereum blockchain that supports the DAI, a stable coin pegged to the US.

3) Uniswap

  • It is one of the most well-liked decentralized that is in the developed on Ethereum.
  • It helps the user to swap between the ETH and ERC-20 token on-chair or earn a fee by offering any amount of liquidity.
  • The good part is that there is no limit regulation on Uiswap.
  • The exchange of ERC tokens is done by a very easy user interface in a private, unharmed and non-custodial way.
  • It was originated in 2018 and was founded by Hayden Adams.
  • At present, there is $4 billion worth of Ethereum tokens enclosed.

4) Compound

  • It is a decentralized money market protocol that permits the borrowers and lenders to secure crypto money in the contracts.
  • This company is based on the Ethereum blockchain that grants the holders to borrow and lend crypto against the security.
  • Here the user has the option to add assets to their liquidity pool and start earning compounding interest.
  • Compound allows the users to take out over-collateralized loans and maintain several assets, plus it has been reviewed and formally verified.
  • It was launched in September 2018, a San-Francisco-based platform that big investors support.
  • Till today they have $6 billion locked up in its liquidity pools.

5) InstaDApp

  • It is a reliable smart wallet for decentralized finance.
  • The advantage of this type of platform is that it is used as a multi-purpose platform that manages digital assets pretty well.
  • With this platform, you can get several services such as borrowing lending, leverage, swap, etc
  •  They also provide a smart wallet portal for Defi protocols. The highlighting thing is that InstaDApp is free to use.
  • It was founded in the year 2018 by Samyak Jain and Sowmay Jain.
  • As of now $1 billion are secured in the InstaDApp contract.

6) dYdX

  • It is a non-custodial trading platform on Ethereum which is geared towards experienced traders.
  • It is a type of platform where you can easily lend, borrow and trade DAI, ETH and USDC.
  • It also provides users to cross the margin trading and isolated margin trading using the perpetual market contract of BTC/USDC of 10x leverages.
  • It was launched in 2018 by Antonio Juliano.

7) SushiSwap

  • It is software that operates on Ethereum and endeavors to incentivize a network of users to run a platform where users can purchase and market crypto assets.
  • This platform is very similar to Uniswap but there is only one difference is that open source code
  • It also uses the collection of liquidity pools for achieving its goals.
  • Here the user interface is very straightforward as need to lock up their asset and traders will trade cryptocurrencies from those pools.
  • It was founded in 2020 by Chef Nomi with co-founder oxmaki.
  • It has around $4 billion trading polls.

8) Dharma Protocol 

  • It is a tokenized and decentralized finance application that operates on the Ethereum blockchain.
  • Here the money lenders, borrowers, and fund managers can exchange transact with each other.
  • It will be having a Dharma Settlement contract that apes the traditional financial instrument and stakeholders.
  • There are four significant agents operating this network: lenders, borrowers, relayers, and underwriters.
  • It was founded in the year 2017 by Nadav Hollander.

9) Curve Finance

  • It is a decentralized and liquidity pool created on ethereum for effective stable coin selling.
  • It allows the user to trade with very little slippage swaps of stable coin and flow fee algorithm.
  • Here the liquidity is split into seven curve pools, which are Compound, PAX, BUSD, Y, REN, USD.
  • It was founded in January 2020 by Michael Egorov.
  • It has over $4 billion value of digital assets secured in the liquidity pools.

10) Balancer

  • This is an automated maker built on the Ethereum network that enables you to buy a token at the best prices and swap them directly.
  • It is different from other platforms as their liquidity pool comprises only two assets, whereas the pool of the balancer comes with eight digital assets for improving liquidity.
  • One highlighting point is that it empowers any weight of any number of tokens within a pool.

 

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Pavan Malipatil

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