Decentralized lending platforms offer loans to companies or individuals without intermediaries. DeFi loan protocols allow everyone to earn interest on the stable currencies provided and cryptocurrencies.
The best services:
Compound
Compound is an open-source, autonomous protocol built for developers, enable algorithmic, efficient money markets on the Ethereum.
Borrowing Assets from the Compound Protocol
The Compound Protocol allows users to borrow crypto assets, using any other supported asset as collateral - giving them the flexibility to settle a trade, or use an application, with an asset that they don’t already own.
How Do I Borrow Assets From Compound?
Borrowing can be done with a user interface, or with code.
Before we walk through the steps of a borrowing sequence, let’s cover some key concepts.
Collateral - In order to borrow crypto from the Compound protocol, users need to first supply another type of crypto as collateral.
This is provided using the same mint function used for supplying assets. Supplied collateral assets earn interest while in the protocol, but users cannot redeem or transfer assets while they are being used as collateral.
TrueFi
What is TrueFi?
TrueFi is a protocol for uncollateralized lending
When TrueFi was established in 2017, the team envisioned a future in which traditional assets would move to the blockchain, taking advantage of the speed, cost savings and borderless nature of decentralized protocols. While globally stable currencies, commodities and some financial assets are increasingly moving around the chain, most real-world assets, such as real estate, have struggled to find the infrastructure and demand needed for the market.
How it Works?
The purpose of TrueFi is to bring uncolateralized loans to DeFi. This helps cryptocurrency lenders to enjoy attractive and sustainable rates of return, while providing cryptocurrency lenders with predictable loan conditions without the need for collateral. Importantly, all lending and lending activities on TrueFi are fully transparent, allowing creditors to fully understand the participating borrowers and the cash flows they commit to TrueFi.
88mph
Fixed Interest Rate Lending Protocol
At 88mph or started work in October 2019, when the DeFi space is at its genesis. It was wanted to build a product that offers fixed and passive income, useful and, if possible, something new. There was no such thing at the time, except for a few ideas. Work began on drafting only contracts around a swap rate concept. He was not friendly with UX and it was not easy to scale, he decided to come up with another idea. The first mainnet version was launched in April 2020 https://88mph.app/v0, offering initial fixed rate interest with a peer-to-contract approach.
Now 88mph is a business model:
88mph protocol fee: 10% is deducted from the interest when a depositor withdraws.
Yield-farming rewards: yield-farmed tokens earned from the protocols 88mph is connected to (COMP, FARM, etc.).
Goals for the future:
An insurance fund financed by the government treasury, which grows in accordance with the activity of the protocol to be the buyer of last resort with insurance products such as Cover or other insurance products that cover specific financial risks.
Building the default swap credit in partnership with another protocol.
Resources: technoloader.com
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