This article was first published on Everex - Medium
Everex’s Stablecoin Wallet Allows Access to Affordable Capital While Earning High Interest on Lending
Since its inception, Everex has always strived to stay ahead when it comes to understanding and adopting the latest and most innovative developments in blockchain fintech. Amid the growing list of technologies, instruments, and concepts that have entered the market, one that has caused a considerable amount of buzz among industry leaders this year is decentralized finance — also known as DeFi.
In short, DeFi is a set of autonomous lending protocols (debt markets) that is available for anyone with a basic blockchain wallet to use as a way of lending and borrowing money in USD stablecoins without the need for pre-approval or a long list of documents to be submitted. DeFi lending protocols can be used regardless of where users are in the world and settle transactions within seconds.
But that’s not all! DeFi lending protocols also provide the following perks:
1. Lenders can start earning interest within 20 seconds after contributing funds to the pool;
2. Funds are not locked in, lenders can withdraw at any time;
3. Rates are normally much more competitive than those found in conventional banks. Annualized returns can go from 5 to 10%, and borrowing rates range from 9 to 13% APR;
4. All loans are over-collateralized with Stablecoins bound by smart contracts that monitor lending positions. These will automatically liquidate the collateral in the event of a market risk.
A feature that is particularly notable is how DeFi protocols allow participants to simultaneously become a lender and a borrower. For example, if a lender was to place $10 (DAI) in the pool, they could start earning, on average, 8% annually, with their available credit instantly being set at $7.50. This means that not only are they able to borrow up to $7.50 at any given ...
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Everex - Medium