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29 September 2020

DeFi app overview: How to navigate crypto’s new finance wave

DeFi app overview: How to navigate crypto’s new finance wave


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Their indisputable advantages are high-interest deposit rates, which can bring holders massive profits in just a few months, and instant loans that can be borrowed with no documents or Know Your Customer verification.

How easy is it to take out collateralized loans with MakerDAO.

For instance, platform services are located on the Oasis decentralized application, while the interest rates on deposits are displayed only after a wallet is connected and a registration transaction is concluded.

Aave allows users to take out loans for cryptocurrency collateral and offer up crypto for interest.

Support for 20 coins and high interest rates make the platform attractive for a wide range of users.

To get the most out of the platform, users often make deposits, take out loans and put them back as deposits.

Compound got a second lease on life after starting to reward lenders and borrowers with its native COMP token, thus popularizing yield farming on the platform and making it profitable to borrow, as COMP tokens fully covered the interest under some market situations, and the interest itself is provided by the growth of the token accrued to all platform users.

Despite the fact that there are only seven supported coins, the interface is quite intuitive, with the lending and deposit panels located on the same page.

Users can take out loans for all of the supported collateralized coins, except for Tether (USDT), when choosing deposit rates.

But lower deposit rates that reach 12.42% per year make the platform less valuable.

Unlike Aave, users of Compound are more likely to get answers from community members or open sources, as the platform has no support services.

Instadapp is a wallet that allows users to carry out lending, margin trading, exchange and interest earnings transactions based on smart contracts.

However, the platform itself provides only cryptocurrency trading services, and users will have to resort to the connected MakerDAO, Aave, Compound and Curve services to take loans or make deposits.

Despite being an aggregator, Yearn has a solid lineup of products, offering all-in-one services for working with crypto in terms of trading, loans and even insurance.

Its Yinsure.finance service offers deposit insurance against unforeseen situations like acute fluctuations in exchange rates or platform hacking.

The downside is that Yearn.finance provides poor descriptions of its products, and users are often forced to turn to its Discord channel in search of answers, or to the 7,000-strong Telegram community, with prompt administrator response times.

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