Summary of the top 10 Lending – Borrowing Coin projects in 2022
Introduction to Lending – Borrowing
In Crypto, Lending - Borrowing is known as a place where users can lend or borrow assets, usually common tokens in the market.
Lending can be understood as the form of an individual or organization lending their idle assets. At the end of the loan term, they will collect both principal and interest. In general, this is similar to depositing fiat money in a bank. But in the cryptocurrency market, the lender's assets are the tokens / coins they are holding and not yet using.
With the Lending feature on the exchanges, the coins participating in the lending will be included in the Margin Trading lending mechanism. As for the platforms that perform the Lending function exclusively, the depositor's participating coins will be used to lend back to the borrowers. These platforms act as intermediaries and benefit from the spread between lending and borrowing rates.
Simple mechanism of Lending (photo: All-in station)Advantages and disadvantages of Lending – Borrowing
Advantage:
- Maximize profits with unused coins
- Keep money safe to wait for opportunities, especially when lending stablecoins
Defect:
- Users must accept the risk that due to rapid market price fluctuations, interest rates may not be able to compensate for the amount of money due to the price of the coin being reduced.
- Lending to Scam projects (often impersonating reputable platforms in the market) leads to the loss of the entire loan.
Top projects Lending – Borrowing
Aave (Aave)
Aave (Aave) is a decentralized lending protocol (Lending DeFi) that allows users to lend and borrow multiple cryptocurrencies using Stable coins or other coins with different interest rates. Aave has features and functions quite similar to Compound, but Aave also possesses its own characteristics. Outstanding features such as smart contract insurance (protects your assets against great risks in Defi such as smart contract errors, liquidation...), Flash Loans (loans without collateral), Flexible interest rates , Diverse and unique collateral.
AAVE is a native token that manages the protocol as well as the payment exchange in some cases.
Compound (COMP)
Compound (COMP) is a Lending platform that allows users to lend and borrow crypto assets without going through any third parties. The essence of Compound's operation is a Liquidity Pool Asset (LPs) where lenders will transfer their crypto assets into the pool thereby creating liquidity and in return they will receive interest. Compound borrowers join an asset pool that needs to borrow and borrow money, in return they are collateralized by an asset class that Compound backs. Compound does not create its own stablecoin, but acts as an intermediary, allowing borrowers and borrowers to interact with each other.
Native tokens of the Compound project, they play the role of maintaining stability, creating economic incentives for network participants to help the platform work.
Venus (XVS)
Venus (XVS) is a Lending platform developed on Binance Smart Chain that enables digital asset lending and the creation of synthetic stablecoins backed by various BEP-20 assets. Venus allows users to borrow Crypto assets worth 75% or less of the value of the collateral and receive VAI Token (Venus Stable Coin).
Venus is powered by Venus Token (XVS), there will be no allocation of founders, team or developers, this token can only be earned through Binance LaunchPool projects or through the liquidity offering. account for the protocol.
Anchor Protocol (ANC)
Anchor Protocol (ANC) is a decentralized lending and savings platform built on the Terra ecosystem. Anchor provides users with a safe solution to deposit savings with stable, low-volatility interest rates on Terra stablecoin (UST) deposits. Anchor plays a role in driving the demand for UST - Stablecoin of the whole country. Terra ecosystem by offering attractive interest rates (currently 20%), leading to an increase in demand for the LUNA token, making the whole ecosystem go up. At the same time, Anchor also offers Borrowing stablecoin feature through locking assets to the platform.
Alpaca Finance (ALPACA)
Alpaca Finance (ALPACA) is a lending protocol at the BSC ecosystem - Binance Smart Chain. For Alpaca, lenders can fully earn a stable source of profit, while providing lenders with leveraged loans and allowing them to optimize profits along with capital. Mortgage. Alpaca's Lending service is a bit similar to conventional lending platforms. However, Alpaca only has EOA, which means that the platform does not allow instant loans to interact with the protocol, thereby making Flash Loan attacks impossible.
Coffee (COFFEE)
Kava (KAVA) is a Blockchain built in the Cosmos ecosystem under the Cosmos SDK platform, similar to Terra, Crypto.com, Binance Chain (not Binance Smart Chain), … Kava was originally just a project about Lending segment with Stablecoin is USDX and backed by popular Crypto Assets such as: ATOM, XRP, BTC, BNB… However, Kava later expanded the ecosystem and first developed Kava Lend in September 9. 2020, then on 8/2021 Kavaswap. The highlight of Kava is the ability to Lending Multichain combined with Kava Lend.
JustLend (JST)
JustLend (JST) is a decentralized lending platform within Just (JST) (decentralized financial platform that allows users to borrow stable coins.Users need to lock collateral and can get the same loan. proportional response in the platform's stable currency USDJ.If the user wants to get the collateral back, the user needs to pay the entire borrowed amount in USDJ. Besides, the cost is covered by the token. JST newspaper.
JST is the project's native token, running on the blockchain blockchain of the TRON ecosystem, TRC-20 standard, the total supply corresponding to 9.9 billion JST
BENQI (QI)
BENQI (QI) is a decentralized liquidity market protocol, simply known as Lending & Borrowing, built on Avalanche. This protocol allows users to easily lend, borrow and earn interest with their digital assets. Depositors providing liquidity to the protocol can earn passive income, while borrowers can borrow over-collateralized. BenQi is considered an important link in the future to promote the explosion of the AVAX ecosystem. In addition, the factor that makes BenQi so important also comes from the project receiving $ 6 million in investment capital from investment funds including Ava Labs.
Geist Finance (GEIST)
Geist Finance (GEIST) is a non-custodial decentralized liquidity market protocol where users can participate as depositors or borrowers. Geist Finance aims at the development of the Lending (lending) market, which works similar to the mechanism of Aave. The interest rates when using are calculated according to the algorithm based on the usage performance of the lending pools. The asset valuation will be determined by Chainlink and Band oracle. When the lender falls below the required collateral ratio, a number of hints will be provided to the liquidator to pay the loan under the mortgage.
Solend (SLND)
Solend (SLND) is a Lending protocol built on Solana, users can borrow and lend crypto assets without going through any third party. Compared to similar platforms on Ethereum, Solend has lower transaction fees, and the ability to scale utilities inside the platform is also quite good. The governance on Solend tends to gradually shift to decentralized (DAO) so that the community can participate more in the project, creating a development community.
Compared to the projects above Market Cap as well as the TVL volume of Solend is not equal, but with the rapid development of the Solana ecosystem, this is a project that is considered to be quite potential.
Above are the Top outstanding Lending-Borrow projects on the market compiled by Hay Mod Game , hope they will help you in the process of researching projects.
