Some thoughts on cryptocurrency loans

TheUltraElite

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Quote from: joniboini on September 02, 2020, 08:13:24 AM

You seem to be quite close with Changelly btw.

OP seems to be an offtopic spammer for a long time and recently moved in the ontopic discussions. It could be a shill account which is 99% of the cases here and posting a thread only to never look back at it.

DeFi may have initiated a new hype but the concept of crypto lending is not new. In fact the first few waves of ICOs did have a bunch of Ethereum tokens that were associated with altcoin-pledging and using it as collateral for a bitcoin loan. Much like the services provided by the Sharks in the "Lending" section of this forum.

However tokens like SALT came to a stalemate(?), Nexo worked out it seems and partnered with many other sites like CMC and etherscan.

There is an analogy with fiat loans where you pledge a valuable to get a fiat loan. I dont see much difference apart from the subtle technicalities.

sunsilk

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I might use those crypto loans if I don't have anyone to ask or borrow money with. But I'll use the popular ones and I might choose nexo or crypto.com for it.

https://crypto.com/en/credit.html

https://nexo.io/borrow

But these loans doesn't have any difference from the traditional borrowing because they'll ask us for a collateral.

btcltcdigger

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To boldly go where no rabbit has gone before...

I personally think it's a great tool, if you got the stomach for it.
Let me explain.

Say you have 1 ETH which is lets say worth $400 (rounded up for ease of use), and want to buy something that's like $100.
But you're kinda sure that eth might go to $500 in a day or so.

So you go to compound, put this 1 eth as leverage, and borrow $100.
With this $100 you buy whatever you wanted, but you still "keep" that 1 eth rather than selling 0.25 eth.
Now that eth is $500, this 0.25 ETH is worth $125.

You pay back the $100 you owe, and they return you your 1 ETH. You basically didn't lose, and still got your item.

X-ray

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Quote from: josephsonand on September 02, 2020, 06:20:34 AM

I have been curious to explore DeFi platforms. What crypto loans do you guys consider? I have read that there are different types but didn't get the difference. Maybe you can help me understand. What do you think about this article btw

The different between the fiat loans and crypto loans should be on the requirements. In the crypto loans as a lender and you will get daily interest and that will be very high compared with the fiat loans that you will earn a very small interest from there. The requirements to get loans are so easy compared with the fiat loans because you will have needed various documents to do that too.

In this case crypto loan is also fully decentralized too and it has a very good transparency to the lenders.

crwth

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If you recheck the article, the main focus of it is to show that cryptocurrency rates are better compared to fiat loans. In the section of the article Crypto Loans Lead the Way, you could see a table in which he compared different loans.

dYdX
Compound
DeFi Crypto Loan (Aave)
Regular 12-month Deposit

The DeFi apps based on Eth gave the best returns in terms of the $1000 invested in each. It's better to profit from those types of things and get the passive income that we deserve. There are a lot of borrowers that you could profit as well.

cryptovers

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I suggest you to take a loans in defi stablecoins because of their stability. For example, defi dollar have 2-3 tokens. Yfi uni and co are high volatile actives. If I’m right defi dollars already listed on uniswap

Salauddin1994

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Given the fact that you are usually more familiar with btw but have a steady supply of almost all cryptocurrencies these will increase invaluably as cryptocurrency transactions increase. Even if cryptocurrency deflation cools down now crypto fiat will still grow at a high rate due to population and economic growth in that case the platforms for the loan will depend.

joniboini

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Not sure which part you didn't understand and there's literally dozens of articles explaining those platforms on the internet. Maybe start with what do you get so far about it so there's no need to explain unnecessary things?

You seem to be quite close with Changelly btw.

josephsonand

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I have been curious to explore DeFi platforms. What crypto loans do you guys consider? I have read that there are different types but didn't get the difference. Maybe you can help me understand. What do you think about this article btw

Topic: Some thoughts on cryptocurrency loans (Read 173 times)