DeFi lending, or decentralized finance lending, is quite similar to the traditional lending service offered by the banks, except that it is offered by the P2P decentralized applications (DApps). The DeFi lending platforms help people borrow and lend funds which allow the crypto holders to earn a substantial income.

The DeFi lending process is simple. It focuses on offering crypto loans with a trustless approach. This means that the users can easily lock their crypto assets on the DeFi lending platform without worrying about intermediaries. The borrowers can directly opt for loans from the decentralized platform with the help of P2P lending.

DeFi lending enables individuals to become a lender just like a bank where users can add their assets to the lending pool and ensure quick distribution among borrowers through smart contracts.

So instead of selling your digital asset and triggering a taxable event you can borrower against the asset using a permissionless blockchain protocol.

MAKER DAO - MKR

MAKER DAO CONTRACTS Token Supply 1.01 Million

MakerDAO is a decentralized lending platform from which you can only borrow DAI tokens. DAI is a kind of stablecoin that is pegged to the US dollar. You can easily borrow DAI through Maker while offering collaterals like BAT or ETH. The users of MakerDAO are encouraged to take part in the operational earnings, which are only the interest rates for the network. Users can borrow DAI up to 66% of the collateral value. Works with MetaMask & Ledger MAKER DAO

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COUMPOUND - COMP

ETHEREUM NETWORK MAX SUPPLY 10 MILLION

COMPOUND SUPPORTED NETWORK CONTRACTS Compound is a kind of autonomous interest DeFi lending rates protocol utilized for open financial applications. Users can directly earn a passive income by depositing the cryptocurrency through borrowing and interest crypto. Compound grants the holders the right to vote on certain decisions like technically upgrading the platform and adding new assets. As a crypto lender, you will get a CToken as per the amount they supplied to the liquidity pool. A CToken is specific to those digital assets provided in the liquidity pool. These tokens will earn interest based on the liquidity pool's respective interest rate. The top 3 markets on Compound are USDC, ETH, and DAI. COMPOUND

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AAVE

ETHEREUM NETWORK MAX TOKEN SUPPLY 16 MILLION

AAVE SUPPORTED NETWORK CONTRACTS Aave is a decentralized finance (DeFi) protocol that lets people lend and borrow cryptocurrencies and real-world assets (RWAs) without having to go through a centralized intermediary. When they lend, they earn interest; when they borrow, they pay interest. Aave also provides pools for real-world assets, like real estate, cargo and freight invoices, and payment advances. For such pools, a partner company called Centrifuge helps brick-and-mortar businesses tokenize aspects of their operations. AAVE

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CURVE DAO - CRV

ETHEREUM NETWORK MAX SUPPLY 3.3 Billion

CURVE SUPPORTED NETWORK CONTRACTS Curve is a popular automated market maker (AMM) platform that offers a highly efficient way to exchange tokens while maintaining low fees and low slippage by only accommodating liquidity pools made up of similarly behaving assets. While this approach results in lower fees for the liquidity providers who supply the pools with tokens, Curve incentivizes their participation by integrating with external DeFi protocols and delivering rewards in the form of CRV tokens and interest. CURVE CRV

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SYNTHETIX - SNX

TOTAL SUPPLY 306 MILLION

The Derivatives Liquidity Protocol on Ethereum Synthetix is a new financial primitive enabling the creation of synthetic assets, offering unique derivatives and exposure to real-world assets on the blockchain. Leveraging the Synthetix debt pool and our innovative liquidity framework, our traders are guaranteed to have some of the best price execution around, with little to no slippage and fills you can't get elsewhere. Capture the price movements of popular cryptocurrencies, fiat currencies, stocks, commodities and more with zero slippage. Stakers receive two kinds of rewards. Firstly, they receive SNX staking rewards which are created through the inflationary mometary policy. Secondly, they also get rewards from the peer-to-contract Synth trades paid out in sUSD. SYNTHETIX

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YEARN FINANCE - YFI

Yearn MAX TOKEN SUPPLY 36,666

YEARN FINANCE SUPPORTED NETWORK CONTRACTS Yearn Finance Yearn Finance consists of four different core products: Vaults - staking pools that generate returns based on opportunities present in the market. Vaults benefit users by crowdsourcing gas costs, automating the yield generation and rebalancing process, and automatically shifting capital as needed. Earn - yearn's first product. Earn is a lending aggregator where funds are shifted between dYdX, AAVE, and Compound automatically as interest rates change between these protocols, ensuring users take advantage of the best rates at all times. Zap - this product enables users to swap in and out of liquidity pools on Curve.Finance using five stablecoins (BUSD, DAI, USDC, USDT, TUSD). Cover - insurance that allows users to obtain coverage in the event of financial losses for various smart contracts and protocols across the Ethereum network. The amount of YFI ERC-20 token a user earns is determined by the amount of cryptocurrency locked in Yearn Finance contracts running on the Balancer and Curve DeFi trading platforms, using the yearn.finance platform.

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