The notion of gaining interest by lending and borrowing assets has always been an important factor in the centralized sector. To be precise, the majority of the financial activities are based on loans in the banking sector. Banking has provided massive importance to this concept. This interesting concept is implemented in the DeFi sector and it gave rise to the creation of the DeFi lending and borrowing platform.
DeFi Lending And Borrowing Platform
The DeFi lending and borrowing platform are very similar to the processing method that takes place in a centralized atmosphere. In the aspect of cryptocurrency, the user can lend their crypto tokens to the borrower and in return, a percentage of interest is added to the borrower. In most cases, the lender receives crypto tokens as collateral that are equivalent to or greater than in terms of the value the token possesses.
Advantages Of Using DeFi Lending And Borrowing Platform
Adherence towards federal regulations.
Permissionless
High transparency
Interoperability
Self custody
Conclusion
Among all the DeFi protocols that have been created and launched into the market. The DeFi lending and borrowing protocol have been impressive in terms of growth and transparency. This platform has proven to be a safe protocol, providing profitable outcomes to the respective parties. The main aim of this platform is to decentralize the entire structure of conventional financial services.
