homepostsIs DeFi lending safe?

Is DeFi lending safe?

Kevin VoigtNov 15, 2021

Taking out loans

However, DeFi loans aren't without risk. Lending protocols like Aave require users to put up collateral — a portion of funds that acts as security for the loan. ... The risk is compounded when DeFi protocols rely on price oracles, which can sometimes be unreliable when providing price data.

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Secondly, which is the best DeFi platform?

Top DeFi Apps

  • Maker. Maker is the most notable DeFi application in the market today. ...
  • Compound. Compound is a decentralized money market protocol based on the Ethereum blockchain that allows digital asset holders to borrow and lend crypto against collateral. ...
  • Aave. ...
  • Uniswap. ...
  • SushiSwap. ...
  • Curve Finance. ...
  • Synthetix. ...
  • Balancer.
Consequently, why are USDC interest rates so high? One reason is the COMP farming where people get COMP token as a reward to use Compound. This lead to a strong utilization of DAI and therefore high interest rates. There is a strong arbitrage to be made here, borrowing USDC @ 4.46% convert them to DAI to supply them @ 9.62%.

Likewise, people ask, what Crypto has the highest interest rate?

BlockFi offers a rate of up to 6% on Bitcoin, which is one of the highest rates I've seen.

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About The Author

Kevin Voigt

Kevin is an Entrepreneur, Digital Nomad, Student, and ICO Marketing Manager currently based in Berlin & Champaign. He is actively involved in the Blockchain space and has worked in numerous projects in the Silicon Valley since 2017. His interests revolve around Finance, Consulting, and Blockchain Research.

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