To Make It More Fun, This Is A List Of The 5 Best DeFi Platforms In 2021

List of DeFi platforms to get passive income (akeo)

JAKARTA – Before entering the list of DeFi lending platforms, it's good to know what DeFi is. DeFi stands for Decentralized Finance or decentralized finance.

DeFi is a system that uses blockchain technology to manage finances efficiently and easily. DeFi is intended for direct transactions without intermediaries and is not centralized like a banking system.

In transactions in the DeFi world there is no middleman or centralized authority between the seller and the buyer because the DeFi system is decentralized or not centralized

Meanwhile, in decentralized finance (DeFi), there is no financial intermediary and centralized authority between the buyer (payer) and payee (seller). Neither party is able to pause or stop the transaction, let alone record the transaction. This is because the DeFi system is not centralized (decentralized).

A number of DeFi applications use the Ethereum blockchain as a base. The reason is that the Ethereum blockchain has its own advantages over other types of blockchains in developing peer-to-peer decentralized applications (dApps). The advantage of the Ethereum blockchain is that it operates a self-operated smart contract using the Solidity programming language.

DeFi has a number of interesting features for crypto enthusiasts, namely the ability to access financial services without having to use personal data as a condition. All it takes is a user's wallet and only cryptocurrency to trade. In addition, DeFi also relies on smart contracts to provide financial services.

Here are the 5 best DeFi platforms for accessing financial services using your cryptocurrency.

CREAM Finance

CREAM, which stands for Crypto Rules Everything Around Me, is an open-source DeFi platform that provides financial services for cryptocurrency owners. CREAM is a blockchain that runs on Ethereum, Binance Smart Chain, and Fantom.

In this platform users can borrow or lend as many as 40 types of cryptocurrencies. In addition, users will also get interest as in traditional bank accounts. Crypto holders who wish to transact on the DeFi CREAM platform do not need to enter personal data for verification.

After the user lends or stores their own crypto in CREAM, the user will receive a crToken which represents ownership of the crypto asset to earn interest. The user will earn interest on his assets based on the cryptocurrencies stored in supply and demand.

When users transact in CREAM, they will get CREAM tokens. Ownership of CREAM allows users to have special rights and can participate in determining which cryptocurrencies will be added to the CREAM platform

88mph

The 88mph DeFi platform allows crypto holders to store their crypto assets and earn fixed interest. 88mph only accepts deposits in a certain number of stablecoins and tokens. The user can withdraw the initial deposit and the interest earned after the loan period ends.

In addition, users will also receive MPH tokens when transacting on the 88mph platform, such as depositing crypto and buying bonds with rising interest rates. Users will also be able to determine which cryptocurrencies will be presented on the 88mph platform.

Aave

In the DeFi Aave platform users can store and borrow up to 20 crypto assets. Users can get passive income based on market demand from the crypts they have deposited in Aave. Users can borrow crypto assets with fixed or variable interest rates.

Aave has an interesting feature called flash loan. Through this feature, users can borrow assets without the need to provide collateral. In addition, Aave also has another feature, namely that users can exchange crypto assets stored with other cryptocurrencies at any time according to the user's wishes.

Aave has its own token, namely AAVE. As with other DeFi platform tokens, owners will be able to contribute to Aave's decisions by voting in the Aave Improvement Proposal.

Notional

This DeFi platform allows crypto users to lend their crypto at a fixed rate in the Notional liquidity pool by buying tokens that support the Notional platform, namely fCash.

Owners of fCash can exchange these tokens for other crypto assets at a certain time in the future. For users who intend to borrow at a fixed rate, they can sell fCash after the collateral deposit period. Borrowers are also required to repay the loan amount within a certain time.

Users can also act as liquidity providers by storing their assets in Notional liquidity. Liquidity providers will earn when borrowers or lenders trade their crypto assets and fCash tokens.

Curve

Curve has a decentralized exchange (DEX) service dedicated to holders of stablecoins on the Ethereum network. The Curve platform has an attractive bargaining power of low cost and low slippage algorithm.

Not only that, users can also earn passive income by depositing their assets into Curve's liquidity pool. In addition, liquidity providers can also deposit a number of different stablecoins.

Curve has its own token with the code CRV. Liquidity providers on Curve will earn CRV tokens. CRV owners can also have a role in future platform decisions.

Thus the list of DeFi platforms that crypto asset owners can try for cryptocurrency holders who want to get passive income from their crypto ownership.