Nowadays, DeFi Lending platforms have filled the gap in traditional banking. Frequently, it's considered as the new technology for the financial sectors while fulfilling the adoption of the blockchain and cryptocurrency. It is popularly known as open finance because it doesn't need any individual third parties for financial services. In this article, we will be going to discuss DeFi lending, and let's get to know about the top DeFi lending platforms.
DeFi Lending and Borrowing:
In the DeFi lending process, the investors and lenders provide a load or deposit fiat currencies for interest through the distributed network and a decentralized ecosystem. On the other side, a single person or business gets money for interest through the decentralized network. Both the lending and borrowing process makes the use of DApps, smart contracts, and other DeFi Protocols.
Why Lending for Decentralization?
Decentralized lending offers various lending opportunities and more benefits to the lenders. Here, we have listed some of the benefits of DeFi lending below.
- Hegde funding.
- Earn your interest by holding crypto assets.
How Decentralized Finance (DeFi) lending works?
Decentralized lending is like putting your hands into the pocket to lend a borrower as much as simple. Moreover, dapps and smart contracts represent your intermediaries and negotiators. For example, you have been getting a loan of $10000 through a decentralized application (DApp), you just need to press a button on your PC, and that' all.
The process is that when you open a DApp which have a smart contract and a pool of borrowers. So click and decide at what interest do you want to provide a loan. Simultaneously, the smart contract automates lending and borrowing agreement.
Top DeFi lending platforms:
A DeFi lending platform is very similar to the traditional lending platform but there is no central authority. Concurrently, all the process is done across the trustless network. However, there are several DeFi lending platforms available that I have listed below.
- Dharma Protocol
- Kittie Fight
These decentralized platforms provide various benefits like more security, transparency, and accountability. However, most of them involve the use of cryptocurrency, and it will be a challenge for the people who are not more familiar with it. Moreover, this platform is much efficient than the traditional one that most of them have started to use today. So, are you planning to build a decentralized lending and borrowing platform over the DeFi protocol? Then Osiz Technologies is the best place. We are the top-most decentralized finance (DeFi) lending/borrowing platform development company that offers the best defi lending and borrowing platform development services in a cost-effective way that makes your platform more secure and trust for the users.