Getting to Know the Potential of Lending-Based Crypto Assets
You can borrow money from the bank by guaranteeing. The same concept can be done with lending-based crypto assets. You can make a loan with a crypto asset collateral whose value must be higher than the loan itself. Loaning crypto assets is done in two ways. If you are thinking of developing crypto assets by owning lending-based crypto assets, here are some potential lending crypto assets that are worth considering.
1. Airfox – Mobile wallet and loan solution.
The uniqueness of the Airfox service is that it uses a blockchain system to allow crypto assets to be used in everyday life. Starting from paying bills to top up the credit balance. Fellow wallet users can borrow from each other without a third party. What makes this wallet very profitable to own to increase crypto assets is its versatility which can also be used as a means of payment.
2. Aave – Decentralized cryptocurrency lending marketplace for consumers
Crypto assets that have good and stable performance always have the potential to be owned, Aave is one of them. Aave is a marketplace that brings together borrowers and people interested in decentralized lending to consumers. Users are also offered various facilities to be able to repay their loans. There is ETHLend which allows borrowing with cryptocurrencies as collateral and can have the profits already earned instead of selling.
Its various features also help anyone to be able to lend cash for cryptocurrencies and digital asset collateral. Another interesting thing that cannot be overlooked is the developer tools to build debt applications that can be tokenized on Ethereum. So, all of its features really support the existence of healthy borrowing and lending activities.
Aave is also a pioneer for express loans offered at fixed rates. Aave’s level of dynamics is quite high, especially when viewed from the higher LTV (loan to value) rate than other landing crypto assets. In addition, Aave accepts a larger collateralized amount than other crypto assets which also means the loan amount can also be larger.
3. Compound – Ethereum blockchain based P2P lending platform
Compound is an on-the-rise Defi platform that is attracting a lot of interest because of its blockchain-based system. It can also be used as P2P loans. Based on the Ethereum blockchain, users can support their crypto protocol and earn interest on their deposits.
Loans are represented by cTokens, which fluctuate in value but can be used as loan collateral. Generally, Compound’s LTV rates are slightly higher than other platforms that are also landing-based. Some of its advantages are no borrowing fees and low liquidation limit. Compound allows developers to monetize and borrow tokens within their applications using a pooled protocol. So, there are many conveniences to owning this crypto asset.
4. AtomicLoans – Bitcoin-powered online lending platform
Bitcoin is the most popular crypto asset, so using it as a loan support will indirectly attract attention because Bitcoin is a reliable crypto asset. Atomic allows users to borrow funds and pledge their Bitcoins.
By opening up opportunities for loans with Bitcoin only, this platform is already targeting a fairly large market. So, if you have Bitcoins and need help getting a loan to pay bills and other expenses, AtomicLoans can do it. Therefore, the potential of this platform is more developed than its current position will be even greater.
5. Ledn – Crypto-backed Blockchain based lending platform
There are similarities between Ledn and several other lending-based platforms. Especially because it uses Blockchain technology and uses cryptocurrencies as collateral or a way to pay. However, what sets it apart is a very important fact.
If the platform is not very popular, the level of risk will be quite low. Ledn also provides a separate wallet address which helps users to have real-time on-chain backup evidence. Thus, the borrower can pay in installments with Dollars or Bitcoin.
This method certainly provides flexibility to be able to pay off the loan that has been made. Using the price index to determine the loan ratio is another advantage of Ledn which makes it easy for borrowers to get a satisfactory loan value.
Some of the lending or loan-based crypto assets above are quite popular among crypto enthusiasts. Each asset has its own plus and minus values. There are even several platforms that make it easy to borrow and also return it. Learn which one is the best fit for your needs.
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