The concept of DEFI was established on the blockchain space in order to create a meeting angle between the extreme volatile system of the blockchain and the non-transparent operations of traditional banks. The operations of DEFI are specifically established to deliver a superior level of speed and security, the central authorities in charge of central financial bodies have failed over and over again and the concept of DEFI is to take away power from this central authorities and give it to a system that is visible and transparent enough for everyone.
The use cases of DEFI has continued to spread, more applications whose charges are lower are constantly developed on the system. DEFI offers a lending and borrowing system that permits financial lending of funds to cryptocurrency users.
The Process of lending and borrowing on DEFI.
DEFI has made it completely easy for lending and borrowing to be done, and the lending and borrowing opportunities on DEFI is associated with the following benefits;
DEFI makes it easy for investors to get fiat while they use their cryptocurrency token as a form of collateral. The presence of a volatile crypto market might make an investor run at a loss by the time he needs fiat and wants to convert his crypto to fiat, but instead of withdrawing the funds and running at a loss, the investor can make use of the lending opportunity available on DEFI and use his crypto token as collateral.
DEFI also makes it possible for those who have funds but do not have good trading skills to earn, this is possible through the method of lending out cryptocurrency tokens under a good smart contract protocol and in return earning significant interest.
Discussing dharma protocol as a platform in DEFI.
Dharma is a very common decentralized platform which provides an opportunity for lenders and borrowers to carry out transactions on a convenient ground, it is an open source wallet giving users the full right to their assets. At the moment this platform supports just two types of asset which is the DAO and the USDC
(https://coinmarketcap.com/headlines/news/defi-lending-platforms/)
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