什么是DeFi贷款？

Thanks to DeFi loans, each person can quickly and easily take out a loan without the need to disclose his identity to third parties or go through verifications created by traditional banks.

DeFi is essentially a universal term for taking over existing financial products, such as loans, and moving them into the blockchain. The idea is to use existing cryptocurrencies to provide financial services through smart contracts. Imagine being able to lend your crypto to someone else and earn interest on the loan. This is how banks work today, but it is a service that few people have access to. In the DeFi world, anyone can become a lender.

By lending your crypto assets to others, you can earn interest on those assets. Borrowers typically need to over-collateralise their loan to protect themselves against sudden declines in collateral

Using smart contracts, found in projects like ethereum, enables users to pool their assets and distribute those assets to borrowers according to the loan terms stipulated in the contract.

These loan pools have their own way of distributing interest among each investor, so it is worth taking the time to research what type of pool you want to commit as an investor. The same advice applies to borrowers as each pool takes a different approach to how it borrows its assets and the rules for borrowing.

When a borrower wants to take out a loan, he has to offer something more valuable than the loan amount. This means that they have to deposit through the smart contract an amount of currency that is at least equal to the amount they would like to buy back. However, the collateral may be in many different currencies. So if you want to borrow one bitcoin, for example, you need to deposit the current price for one bitcoin in DAI. Or 10,000 DAI. A few months later, you finish paying off your loan and need to pay off your bitcoin + 10 percent, then get your DAI 10,000 back. The borrower is happy because he has got his original DAI back without having to sell it, and the pool is happy because it can now distribute 10 percent of the bitcoin to the pool of investors.

Defi lending platforms aim to offer cryptocurrency loans in a trustless manner, i.e. without intermediaries, and allow users to deposit their cryptocurrency coins on the platform for lending purposes. The borrower can directly take out a loan through a decentralized platform known as P2P lending. Besides, the loan protocol allows the lender to earn interest. Among all decentralized applications (DApps), Defi has the highest rate of lending growth and is the most widespread contributor to the blocking of cryptocurrency assets.

The underlying technology for defi loans is Blockchain; Defi takes advantage of all its unique features and performs exceptionally well compared to traditional loans. Defi Loans offer complete transparency with easier access to assets for any money transfer process without involving any third parties. This is the simplest borrowing process; the borrower must create an account on the Defi platform, have a cryptocurrency wallet and open smart contracts. Defi offers a censorship-free environment, meaning there is no preferential treatment while ensuring immutability.