16 rows · Apr 30, · Salt Lending is one of the oldest blockchain based bitcoin lenders. It has its . Ethereum is a decentralized smart-contract platform which was developed in late by renowned founders including Vitalik Buterin, Gavin Wood and Joseph Lubin, among others. Ethereum went live following an Initial Coin Offering (ICO) for the protocols native token – Ether ($ETH) – in mid Nov 30, · Compound is a crypto lending platform that lets users lend crypto assets to each other. It has grown to become the third-largest DeFi platform and has over $ billion locked in its smart.
Ethereum bitcoin lending platformTop Ethereum DeFi Lending, DEX and Payments Projects
The Bitfinex margin funding market provides a secure way to earn interest on fiat and digital assets by providing funding to traders wanting to trade with leverage. Users can offer funding across a wide range of currencies and assets, at the rate and duration of their choice. In addition to this, users can use the Auto-Renew feature to renew offers automatically upon expiry. In addition to its exchange and margin services, it also allows its traders to lend their coins to others, setting the interest rate and duration of the loan.
The feature is only available outside the U. Because the lending is being done to cover margin positions on the enchange, lenders could face more risk here, especially in volatile markets.
Margin maintentence levels are quite low, exposing lenders to the threat of a default. Like other similar platforms, fiat currency is loaned against crypto collateral. One unique feature is loans are charged no interest if the value of your collateral is lower at the conclusion of the loan than it was when the loan is taken.
One of the superior features of Nexo is instant availablity of fiat after crypto is deposited. Users also appreciate the Nexo debit card and the ability to deposit directly to a bank account. This means assets can be spent immediately. The platform works with over 20 cryptocurrencies in addition to bitcoin, and loans can be made in over 45 different fiat currencies. Borrowers can make payments in either crypto or fiat currencies and loans are available to residents of most countries worldwide.
The CoinLoan platform is available globally for both lenders and borrowers. Details of all loans are shown on the Lendingblock order book. Built for institutional investors, Lendingblock enables hedge funds, exchanges, asset managers, traders, miners, and market makers to find liquidity, generate additional yield, facilitate arbitrage strategies, settle shorts, and capture directional views of market participants. Lendo will expand the personal loans market while also offering members of the Lendo community network a range of additional services, such as a crypto wallet, a credit card, and a crypto trading exchange, leading to a complete cryptobanking ecosystem.
Currently the platform is in alpha testing and is expected to go live in the summer of A borrower requests a loan amount or can respond to lender offers of loans. To top it off, it allows traders to include any kind of asset in a transaction, be it gold, digital asset, or fiat money.
Kyber is another on-chain liquidity protocol offering multiple types of reserves in the form of smart contracts controlled by anyone who deployed it.
While Uniswap limits users to supply to the same pool and sets prices using a formula, Kyber offers liquidity spread across various reserve pools. Traders can get the best price from any pool that offers it across all reserves.
Allowing developers to build financial products permissionlessly is one of its many strengths. Kyber is the cornerstone of DeFi. DeFi payments offer secure transactions which are powered by programmable smart contracts.
OmiseGO is a white-label eWallet and a DeFi payments platform working worldwide across different asset classes and financial apps. The team behind OmiseGo is targeting financial use cases to enable this protocol to become a decentralized bank and payment system for global finance.
Request Network is a payment-based DApp and an open network for transaction requests. Requesting and receiving payments via Request Network is quite simple and takes only three steps:. The request payment model is perfect for both businesses and individuals, enabling a secure and quick authentication for invoices, taxes, and other types of payments. Alongwith using Ethereum, a myriad of projects use Bitcoin, Tron, EOS, and other major blockchains to convert conventional finance models into DeFi alternatives.
We at PixelPlex are well equipped to capitalize on the opportunities offered by the wide proliferation of DeFi. Echo is loaded with industry-standard feature such as:. Our objective at PixelPlex is to take DeFi to a new level by enabling interoperability of the two networks within an innovative ecosystem while offering convenience and freedom to transact.
DeFi offers promising investment avenues to all investors. The ability to stabilize market volatility in extremely uncertain conditions is one of the most beneficial aspects of investing in DeFi. In , we expect DeFi to gain further traction, as blockchain development is growing in popularity, attracting talented technology specialists and developers to contribute.
At PixelPlex, we track the development of decentralized finance economy in real time. So stay tuned and expect more from us on DeFi in future. Home Blog Blockchain. Trading Interest Income Wealth Management. Get front-row industry insights with our monthly newsletter Email. Learn more. BTC Wallet List Company optional. Phone optional. Send message. In Ethereum , like all other decentralized blockchain networks, there is no reputation or personal identity attached to each account.
Interactions on Etherum occur under a pseudonym but are not anonymous or untraceable because every transaction is recorded on a globally distributed ledger. Because of this pseudonymous nature, decentralized loans must use collateral to guarantee loans and crypto-assets such as Ether function as that collateral. Ethereum was designed to be a platform for smart contracts.
Smart contracts are just computer programs like any other, except that by being on a public blockchain, their code and transactions are openly viewable by anyone, they must run exactly as programmed, and they are capable of moving crypto assets. The main mechanisms of a smart contract are that it executes automatically when certain preconditions are met and that the code or behavior of that smart contract cannot be changed after it has been deployed.
The first two building blocks that make lending on Ethereum possible are smart contracts and crypto assets used as collateral. By being able to transfer value through the internet using blockchain and by setting it up so that agreements can execute automatically, we are able to have lending.
As a simple example, a smart contract can be written with the following conditions:. All of the transactions mentioned above happen automatically so as soon as step 1 happens, step 2 occurs, and as soon as step 3 is triggered, step 4 happens.
A different account or different borrower would have to start the process from step 1. This is the basic mechanism of a decentralized lending application. Though we can technically lend without a stablecoin, it is enormously risky if the asset that you are borrowing and the collateral that you are putting up as a guarantee both swing wildly in price. Stablecoins are a cryptocurrency that has a stable or constant value over time.
It is usually tied in value to a stable fiat currency such as the US Dollar. The first widely used and currently most popular stablecoin is Tether. Anyone should technically be able to buy, own, and trade Tether, then be able to redeem that Tether for USD 1. These recently launched stablecoins all use the same principle to keep their coin stable, which is to have USD 1 in reserve for each token that they have in circulation.
The downside of this type of system is that users must trust that the organization in control of the stablecoin does indeed possess all the fiat currency reserves that they claim to have. If the value of their reserves falls below the value of their total token supply, then the entire system may become unreliable and collapse. As with anything in the blockchain space, it is best to do your own research and proceed with caution. One of the biggest advantages of using a public blockchain like Ethereum is that systems can be designed that do not rely on trust.
Simply, the code will execute as programmed and cannot be changed after it has been launched. Therefore, systems can be developed and run without the need for human control or interference. Besides currency backed or centralized stablecoins, the other type of stablecoin is based on a complex series of smart contracts, which keep the value of the coin constant.
Decentralized stablecoins do not depend on custodians, managers, or auditors to ensure that the price of the coin is steady, but it does depend on trusting that the smart contract code functions as intended. This trustless principle is what drove the creation of the most popular Ethereum-based stablecoin, DAI, which is developed by an organization called MakerDAO.
When the borrowed DAI are repaid, the locked up ETH is returned to the user minus a stability fee or fee for using the system. You keep whatever is left over. Because this is a completely open system, anyone can see which CDPs were bitten or liquidated, when, and at what ETH price. If MakerDAO is a decentralized system then how are decisions about fees, penalties, and changes made?
The system is meant to be governed in part by a governance token called MKR that allows holders to both make decisions about the system as well as act as a lever to stabilize the DAI price.
The MakerDAO team originally developed the smart contract system, but since the contracts have been live, they no longer have direct control of them anymore. They guide decision making, but it is the MKR token holders that decide on or vote whether an action should be taken or not. The process works by first having the MakerDAO team propose a vote and present their reason for why they want MKR token holders to side with them.
Any one party does not centrally control decentralized systems, and they must rely on a system of well-designed incentives, mechanisms, and market forces to keep them functioning.
Conversely, if MKR token holders govern the system badly so that CDPs do not have enough collateral, new MKR tokens are automatically created and sold, bringing the system back to sustainable levels, but also effectively decreasing the price of MKR. The use of lending and borrowing applications have increased during the most recent bear market or crypto winter because many people who are currently holding crypto-assets do not want to sell them while prices are so low.
By using their assets as collateral, holders can spend money while also keeping their positions for the long term. It is why the drop in the price of ETH has corresponded with the increased usage of lending and borrowing dapps. Some blockchain lending services are managed by organizations, which mean they tend to be more regulated and strict about user requirements than their completely decentralized counterparts.
The benefit is that in addition to Ether and Ethereum tokens, they also accept other popular cryptocurrencies such as Bitcoin and Litecoin.
They are more like a traditional software company or bank that specializes in dealing with crypto assets. They advertise an APR starting from 5. You can decide when you pay back your loan, as well as how much collateral you want to provide. Your APR decreases with more collateral and a longer-term loan.