A Quick Dive into Lend Flare’s Innovative Lending Platform
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Decentralized Finance or DeFi is a major trend that emerged from blockchain technology and changed the course of modern fintech with its permissionless nature. The potential of cryptocurrency found new pennons on the decentralized platforms and generated an alternative to traditional finance that lacked innovation for decades. DeFi started to take off in the summer of 2020. Compound launched its governance token COMP in May 2020 and the term ‘yield farming’ became a buzzword. Providing liquidity on a lending-borrowing platform like Compound helped the users to earn astonishing yields. AMM (Automated Market Maker) based DEXs started to compete with top tier CEXs in terms of trading volume but all such DEXs faced three challenges: high slippage, high fees, impermanent loss. Curve Finance came up with an innovative solution by building liquidity pools with similar assets like stablecoins. Curve also gave incentive to the users for providing liquidity. The optimized AMM of Curve (0.04% trading fee, low slippage, direct stablecoin to stablecoin swap) caught the attention of the investors and the platform grew exponentially as per TVL (Total Value Locked). DeFi has really travelled a long way now!! The early days’ problem of low liquidity is over. Now, we can see various projects that come up with intuitive and user-friendly platforms offering yield maximizing opportunities and superior capital efficiency.
A Quick Dive into Lend Flare’s Innovative Lending Platform
A Quick Dive into Lend Flare’s Innovative…
A Quick Dive into Lend Flare’s Innovative Lending Platform
Decentralized Finance or DeFi is a major trend that emerged from blockchain technology and changed the course of modern fintech with its permissionless nature. The potential of cryptocurrency found new pennons on the decentralized platforms and generated an alternative to traditional finance that lacked innovation for decades. DeFi started to take off in the summer of 2020. Compound launched its governance token COMP in May 2020 and the term ‘yield farming’ became a buzzword. Providing liquidity on a lending-borrowing platform like Compound helped the users to earn astonishing yields. AMM (Automated Market Maker) based DEXs started to compete with top tier CEXs in terms of trading volume but all such DEXs faced three challenges: high slippage, high fees, impermanent loss. Curve Finance came up with an innovative solution by building liquidity pools with similar assets like stablecoins. Curve also gave incentive to the users for providing liquidity. The optimized AMM of Curve (0.04% trading fee, low slippage, direct stablecoin to stablecoin swap) caught the attention of the investors and the platform grew exponentially as per TVL (Total Value Locked). DeFi has really travelled a long way now!! The early days’ problem of low liquidity is over. Now, we can see various projects that come up with intuitive and user-friendly platforms offering yield maximizing opportunities and superior capital efficiency.