As the DeFi market has continued to evolve and grow over the course of the last year or so, one domain that has made an insane amount of progress is that of decentralized borrowing/lending. In this regard, it should be highlighted that decentralized lending platforms are basically financial ecosystems that enable anyone, anywhere across the globe to share and borrow funds without the need of a centralized intermediary such as a bank. Additionally, these platforms also offer a much higher degree of security all while operating within a trustless environment — i.e. there is no single point of failure within the ecosystem.
In other words, DeFi lending/borrowing platforms allow users to issue loans and even deposit fiat in lieu of a steady rate of interest which is doled out in a completely decentralized manner. This is an extremely lucrative setup for lenders as it enables them to accrue steady interest on their existing holdings in a highly risk-free manner, that too without them having to supply their personal data information into the hands of any 3rd party service operators. That said, in this article, we will look to list out some of the most prominent DeFi lending solutions available in the market today, so without any further ado, let’s get straight into it.
Growth DeFi
One of the most promising, fastest-growing BSC-based DeFi projects in the market today, Growth DeFi’s MOR cryptocurrency provides a unique take on how users can borrow/lend funds in a decentralized fashion — quite akin to the way in which MakerDAO and DAI function. However, what truly sets the platform apart from the rest of the fray is that it incorporates a host of other novel tools that are totally unique to the Growth DeFi ecosystem. For example, it provides users the ability to mint/borrow MOR stablecoins with collateral — which in turn, also can be used to help users draw an additional passive yield. MOR started from a simple question: How can they bring higher returns for yield farmers, while still keeping risk to a minimum?
As a result of such a unique setup, it is possible for investors to not have to simply watch their capital lie idle when they acquire a loan. For example, users can deploy their borrowed funds to leverage their farming positions, which is an extremely lucrative prospect since it stands to really maximize one’s monthly yields in a big way. To put it another way, MOR helps provide users with the best of what the DeFi world has to offer, allowing them to not only earn while borrowing but also increase their overall monetary leverage, both in relation to their yield-earning and non-yield-earning positions — all while being exposed to extremely low, fixed borrowing rates. They recently introduced their MOR self-repaying Loans, a first for efficient leveraging. The result is a combination of yield going up and debt (and risk) going down. Self-Repaying Loans will be available for all collaterals on Avalanche very soon.
