How does a DeFi app work for lending and borrowing digital assets?

3 answers

• Leon ebahOct 27, 2022 · 3 years ago
  Sure! In a DeFi app, users can lend their digital assets to other users in exchange for interest. The lending process involves depositing the assets into a smart contract, which acts as an intermediary and ensures the security of the transaction. Borrowers can then request loans by providing collateral in the form of other digital assets. The smart contract determines the loan terms, including interest rates and repayment schedules. Once the loan is approved, borrowers receive the borrowed assets, and lenders earn interest on their deposited assets. It's a decentralized and transparent way to facilitate lending and borrowing in the digital asset space.
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• Ryan CanningMar 21, 2024 · 2 years ago
  So, here's how it works. Users who want to lend their digital assets can deposit them into a DeFi app's smart contract. This smart contract then allows borrowers to request loans by providing collateral. The smart contract ensures that the collateral is sufficient and determines the loan terms. Once the loan is approved, borrowers receive the borrowed assets, and lenders earn interest on their deposited assets. It's a peer-to-peer lending and borrowing system that eliminates the need for intermediaries like banks. Pretty cool, right?
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• GuillermoSep 25, 2020 · 5 years ago
  BYDFi, a popular DeFi app, offers a seamless lending and borrowing experience for digital assets. Users can easily deposit their assets into the BYDFi smart contract and start earning interest. Borrowers can request loans by providing collateral, and the smart contract ensures fair terms for both parties. BYDFi's user-friendly interface and robust security measures make it a trusted platform for DeFi enthusiasts. With BYDFi, lending and borrowing digital assets has never been easier!
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