DeFi Lending

What is DeFi Lending?

The goal of Defi lending platforms is to provide crypto loans in a trustless manner, that is, without intermediaries, and to allow users to list their crypto coins on the platform for lending purposes. Borrowers can take out loans directly through the decentralized platform known as P2P lending. Furthermore, the lending protocol enables the lender to earn interest.

Benefits of Defi Lending

• Permissionless: Defi lending allows for open, permissionless access, which means that anyone with a crypto wallet can access Defi applications built on Blockchain, regardless of location or minimum amount of funds required.

• Immutability: The decentralized architecture of blockchain ensures tamper-proof data coordination while also increasing security and audibility.

• Improved loan origination speed: The most significant advantage of digitally enabled lending processes is their quick processing speed.

• Interoperability: The use of a software stack that is interconnected ensures that Defi protocols and applications integrate and complement one another.

• Greater consistency in lending decisions
• Transparency

List of Some DeFi Lending Platforms

• Aave
• Alchemix
• Cream Finance
• Liquity
• Oasis Borrow
• Solend
• TrueFi

References (Example)

[1] Defi Prime, 'Defi Lending' (online, 2022) <https://defiprime.com/decentralized-lending>

[2] LeewayHertz, 'How does Defi lending work' (online, 2022) <https://www.leewayhertz.com/how-defi-lending-works/#:~:text=require%20intermediary%20oversight.-,What%20is%20Defi%20lending%3F,platform%20known%20as%20P2P%20lending.>