DeFi is yet another aspect of finance that has seen a rise. It allows people to access financial services, such as borrowing and lending, using cryptocurrency without needing a traditional bank. And get this – over 4 million unique users were using DeFi applications, resulting in over 40x growth since 2020.
One of the most fascinating features of Decentralized Finance is DeFi lending. Borrowers can borrow cryptocurrency and pay interest in return. These loans doesn’t need a bank to be a middleman for the transaction. They are typically collateralized, with borrowers providing cryptocurrency or other digital assets as collateral for securitization of the loan. With DeFi loans offering competitive interest rates, this is a game-changer for the traditional lending space.
The adoption and awareness of the DeFi sector are continuing to increase. It is an alternative to traditional approach with more flexible terms and lower fees. Hence, it’s no wonder more and more people are turning to this innovative approach.
So, what are your thoughts on DeFi loans? Let me know in the comments!