Those interested in obtaining a fixed amount of money at the beginning of the operation must take into account a series of details.
According to the protocols:
- You must have a digital wallet such as Metamask, Trust Wallet, Wallet Connect, Argent, Ledger, among other options.
- The wallet must be funded to then deposit and finally request the loan.
- Attention should be paid to the type of asset that is requested when generating a guarantee. That is, depending on the protocol Bitcoin, Ether or stablecoins like USDT, DAI or BUSD will be deposited.
- The “ratios”, that is, the protocol settlement margin, must be verified.
What are the 4 most popular crypto lending protocols and how to access them?
Venus Protocol
It is allowed to deposit different types of cryptocurrencies as collateral and to borrow other cryptocurrencies.
- Enter the official site of the protocol.
- Click on “Launch app” and then the user will enter the Venus Protocol panel to start trading, after linking their MetaMask digital wallet.
- Finally, enter the panel and click on “borrow market”, in Spanish, loan market to begin the application process.
In this case, the ratios are up to 60%, that is, if Bitcoin is trading at $10,000, users will be able to request up to $6,000.
Ramp DeFi
This option works as a lending platform that allows users to borrow the stable cryptocurrency rUSD at very low rates.
In the case of Ramp DeFi, settlements are made by “vaults”, that is, by each of the smart contracts of Ethereum, the network of smart contracts. There, people can store their crypto and obtain tokens that can later be used as collateral.
In simple terms, vaults work like pools of funds that use particular strategies to maximize returns on the assets they contain.
Anchor Protocol
The cryptocurrency TerraUSD (UST) is used here, a digital asset that is backed by the Luna digital currency of the Terra blockchain.
In order to enter this protocol, you have to buy UST, synthetic Terra dollars, and then deposit them in the protocol so that the $bLuna bonuses are credited.
These bonuses are “locked” into the Anchor Protocol and can be used to exit the platform into other protocols like Mirror and continue to earn income on those security bonds.
AAVE
It is one of the most popular protocols on a global scale that is used to deposit your cryptocurrencies and receive interest. You can access the official site of the liquidity protocol at this link.
In addition, AAVE allows you to request stable cryptocurrency loans and to access them, you must connect a wallet with the protocol and enter the “deposit interest” section.
Then, within “Control Panel” people can see how much money they requested, what is the valuation of their total and vault deposits, the security of the loan, among other factors.
It should be noted that all decentralized lending protocols can be viewed through the DeFi Rate and Pools.fyi pages. There you can evaluate the investment returns and commissions of all the protocols of the cryptographic ecosystem.
The information on these sites is updated hourly and allows people to track rates and returns on investment.
Source: Ambito
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