Lending and Borrowing of valuable Assets and Money has been around for a long while in Human Society, This activity gives people Edge and Helps both Party achieve individual goal, making it (Lending/Borrowing) a form of indirect Beneficial Agreement between two Parties.
Intermediaries are needed for Lending and borrowing to occur, Like a Bank for Example. Bank as an Intermediary Connects You (Lender with Savings Money) with Borrowers or Lenders You as a Borrower Funds By You Applying for various Reasons such as Business or Investment purposes.
Via Web3 and Blockchain technology, Lending and Borrowing has Evolved with Decentralised Protocols and Dapps. Using Specific Smart Contracts Lending Protocols handles Lending and Borrowing operations with faster Facilitation speed.
WHAT IS A LENDING DAPP/ LENDING PROTOCOL?
A Lending Protocol is a Blockchain Based System that Enables Users Borrow Crypto assets with a Collateral and Also Lend Their Cryptocurrency Assets while Earning Interests and Yield.
This happens without any Paperworks and traditional Intermediaries.
Lending Protocols Offer Liquidity pools for Lenders and borrowers to interact with 100% Transparency. Interest Rates are Either Dynamic or Fixed and each Liquidity pools and protocol has its own Unique specifics.
Below are Major Lending Protocols With Good Adoption Credibility
- Aave
- MakerDAO
- Compound
- Synthetix
- Curve Finance
- Balancer
- Yearn Finance
Lending and Borrowing on Blockchain and Web3 Has Proven to be Of Great Value with Millions in Daily Activities and Transactions, Creating Ease for Both the Borrower and the Lender Alike.
Bigger Companies Automate Their Lending and Borrowing on Protocols providing Gas Fees and Collateral while Executing Transactions with Existing capitals on Liquidity Pools, This is called Flashloan. Want to Learn more or Get Started? Mevengine Flashloan Software Has Monthly Trade Volume of $100M+
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