DeFi Lending

The debate on undercollateralized vs. collateralized loans continues as investors look for the best ways to make money in cryptocurrency. Decentralized Finance (DeFi) took the crypto industry by storm in 2020. Since then, the sector has spurred numerous lending tools that blew the doors wide open to cryptocurrencies for everyone. Suddenly, newbies and expert investors could access crypto funds with minimum investment. Today, loans in DeFi are accessible to anyone willing to borrow or lend. They only need to decide…

The DeFi space releases innovative financial tools almost every month. The latest one on this list should enable users to loan assets with lower-value collateral. Through undercollateralized loans, borrowers would access funds way above their holdings. Also, lenders would earn interest, and lending protocols would surpass traditional banks in approachable crediting services. As you can see, this feature should keep everyone happy. But, unfortunately, it all sounds just too good to be true. After all, undercollateralization should be the next…

When contemplating investing in a particular company, a serious investor always wants to know the company's real value beforehand. There are straightforward ways of determining the company's value in traditional finance, like multiplying stock by the unit stock price.  In Decentralized finance, good investors always want to analyze the value of a Defi project before making any decision. But how can an investor know the actual value of Defi? The most popular metric used in the Defi world is determining…

In a recent announcement, Bitfinex launched a P2P lending platform - Bitfinex Borrow. The platform will enable users to lend or borrow crypto assets in a peer-2-peer manner. Those looking to borrow can obtain a loan in either USDT or USD against their Bitcoin or Ethereum holdings as collateral. How does it work? The platform currently offers two interest rate models for borrowing - Variable & Fixed Rate. On the one hand, the variable rate varies from 5.5% to 18.25%…

Global peer-to-peer Bitcoin trading platform Hodl Hodl has just announced a Bitcoin-backed lending platform. With this announcement, the platform has become a true non-KYC platform for lending and borrowing cryptocurrencies. The platform has managed to bypass know-your-customer (KYC) procedures and, at the same time, not acting as a custodian. No Custody - No KYC - No Fiat With this announcement, the platform showcases its Hierarchy of DeFi with three main properties - No custody, No KYC, No fiat. The first…

In recent times, venture capital research company Ana.vc published a report highlighting a 57 percent reduction in cryptocurrency funding from VCs last month. In spite of the dip in overall investment, it seems the decentralized lending sector is still prosperous as it raised 150 percent of its aggregate in March. The report noted a decline in cryptocurrency fundraising last month but did not consider Bakkt’s raise. It noted thirty disclosed deals worth an aggregate of about $50 million, down from $117 million last…