Best Lending DeFi Platforms You Should Know

There are different lending platforms in the decentralized finance (DeFi) market. All of them are offering users with the possibility to lend their assets and earn some rewards. However, each of these apps has different lending rates and digital assets supported. This is why it is definitely important to know which are the best lending DeFi platforms currently available.

In this guide, we will share with you some of the best lending DeFi platforms that you can use to lend your digital assets.

Disclaimer: this post should not be considered investment advice. This is only for educational purposes only. Never invest more than what you are able to lose and always ask for information to your professional financial advisors. We are not financial advisors.

Maker

Maker is one of the largest decentralized credit platforms that is based on top of Ethereum (ETH). This DeFi services provider works with the Dai stablecoin. Users can lock in collateral in tokens such as ETH or BAT and create Dai, which is going to be backed by the collateral they have deposited.

When users borrow Dai, there is a “stability fee” they have to pay once they repay the borrowed Dai. Users can borrow Dai up to 66% of their collateral’s value. The collateral should remain at 150%. If users’ vaults fall below that level, they will have a 13% penalty and get liquidated.

You can be part of the Maker ecosystem in just a few simple steps and start borrowing funds. You will not have to sell your crypto funds to get Dai and start using it for the things you want.

Compound

The second platform that we are sharing with you is Compound. This is also considered one of the best lending DeFi platforms in the world. Compound is an algorithmic money market protocol that runs on Ethereum and allows users to borrow assets and use collateral to back these loans. This is very similar to what Maker is already offering.

However, users can easily provide liquidity to the pools handled by Compound and earn compounding interest. The interest rates will be adjusting automatically based on the supply in these liquidity pools and the demand for borrowing the assets.

It is worth taking into consideration that 10% of interest paid goes to reserves. After being launched in 2018, the platform is now among the largest in the DeFi market. According to DeFi Pulse, Compound has $1.6 billion USD locked (in crypto).

Aave

Another lending and borrowing protocol in the DeFi market is Aave. This open-source DeFi protocol is also allowing users to earn interest on deposits. Individuals can also borrow assets and return them for a small fee.

At the time of writing this post, users can lend a wide range of virtual currencies, including the largest stablecoins in the world (USDT, Dai, TUSD, SUSD, BUSD and USDC). They can receive as much as 17% interest for their tokens on an annual basis.

Individuals can also deposit other coins and make some money. For example, it is possible to deposit a wide range of altcoins such as Decentraland (MANA), Chainlink (LINK), or Basic Attention Token (BAT), among others.

Aave is also offering users with the “first uncollateralized loans” option for users that perform arbitrage trading or that need funds as collateral swapping. There is a 0.9% fee on these loans and they should be returned in just one transaction block.

Cream Finance

The last one of the best DeFi lending platforms we are covering today is Cream Finance. This firm is a decentralized peer-to-peer lending platform that has been created as a fork of Compound finance. The goal is to bridge liquidity across assets that have been underserved.

Users can supply the coins that are needed and borrow any other asset. This network has been released on top of Ethereum but it is planning to move into the Binance Chain. Some of the coins that they are currently offering to users include most of the stablecoins and other coins such as yCRV, yyCRV and many others.

Currently, there are $145 million in tokens and funds deposited on this platform. There are exactly 37.8k ETH locked on Cream Finance, showing that there is a large user base for this platform. However, the total value locked in Cream Finance has been falling since September this year with the expansion of the DeFi market and other DeFi platforms such as Sushi or Yearn.Finance.

Proficient authors guiding you with transparency, integrity and education through the finance international markets

The AltSignals writing team consists of experts dedicated to the world of finance and technology, with a particular focus on cryptocurrencies and forex. Our writers bring a broad range of knowledge and experience, cultivated through years of arduous and direct involvement in financial markets, as well as intense technological collaboration.

Editorial approach

At AltSignals, we believe that transparency and education are the key to empowering our readers. Therefore, our content is meticulously researched to ensure its accuracy and thoroughness. Each of our articles is created with the aim of providing educational insights and in-depth analysis, helping both beginners and experienced traders.

Commitment to quality

Integrity is certainly the foundation of our editorial process. The team follows rigorous journalistic standards with careful review, all to ensure that each publication is meticulously researched and exceeds our readers’ expectations.

Our mission is to provide analysis that informs as well as guides users and enthusiasts through the complexities of the cryptocurrency and forex markets. In line with our motto of “quality over quantity”, we guarantee that only the highest quality trading signals are published.

In addition to our commitment, which extends beyond the simple transmission of useful information, our in-depth analysis focuses on profitability and effectiveness squarely, avoiding the common industry habit of prioritizing profit over accuracy. Our traders are strategic experts who offer personalized help to those seeking worthwhile portfolio management tactics.

Diverse knowledge

Our authors are proficient in a variety of topics across the financial spectrum, from emerging trends in blockchain to the nuances of forex trading. This diverse range of knowledge allows the team to cover several topics, ensuring our content is always comprehensive and deeply specialized.

Interactivity and support

We understand that the world of trading can be complex for many. Therefore, alongside producing informative articles, our team is also committed to interacting with the community. Through comment sections, forums and direct support, we encourage our readers to seek clarification and sharpen their understanding, promoting an environment of continuous learning.

Future vision

Looking to the future, the AltSignals writing team is imbued with a vision that transcends regular publishing, and continues to dedicate itself to discovering and reporting on the latest innovations and trends available in the market. We are constantly seeking to improve our skills and expand our knowledge, with the ultimate goal of being a reliable and respected source in digital financial journalism.

There is great commitment to discovering and reporting not only the latest news and trends in the market, but also to equipping our readers with the tools they need to navigate volatile markets with confidence. We firmly believe that, with the support of an appropriate platform coupled with accurate guidance, our readers and traders can turn market volatility into a competitive advantage.

Join us

Follow AltSignals to stay up to date with the latest developments in the world of finance and technology, and explore how our insights can help improve your trading strategies. The AltSignals team is here to guide you through the exciting, dynamic and challenging world of financial markets.