With the development of DeFi and CeFi applications,lending services, staking platforms and margin exchanges, choosing a profitable method has become a little bit hard. It is difficult to say which platform provides the best profit and interest rate. Accordingly, in this article we are going to discuss about how to gain profit Using Crypto Lending Platforms.
Using Crypto Lending Platforms
The purpose of DeFi lending services has been to provide margin liquidity for traders and borrowing option through DeFi apps. Interestingly, as these apps work based on Ethereum network, the majority of loans are paid using Ethereum, ERC-20 tokens or wrapped tokens. Therefore, we want to take a look at some of the famous crypto lending platforms in DeFi world.
Compund: a platform in DeFi world for tokenized lending and collateral borrowing.
Cream: a lending platform built based on Compound Finance.
dYdX: a platform in DeFi world for margin trading, collateral lending and borrowing.
Aave: a platform built for collateral lending and borrowing.
In addition to decentralized services, there are some centralized lending platforms which are available for investors. The interest index in these platforms is more stable than in decentralized ones. The reason for this matter is that these indicators are adjusted by the lender and do not change based on market forces’ effect.
Interest indicators in centralized platforms are higher than in decentralized ones. Some examples of these platforms include Nexus, BlockFi, Celsius, Com and Hodlnaut.