Compound Finance- Defi Done Right and a Great Place to Put Your BAT and DAI
Cross posted from my Publish0x account. Join me on Publish0x and start earning BAT and DAI cryptocurrency at the link below: https://www.publish0x.com/?a=X7ax63rdyv
Most cryptocurrency is held in wallets, and the amount of cryptocurrency that is actively traded and utilized in Dapps (decentralized applications) is minuscule compared with that which is "HDOL'D". What can a holder of cryptocurrency do while waiting for their asset price target for sale? Take them to Compound Finance on the Ethereum Blockchain and earn interest. You can even use your collateral to take out cryptocurrency loans, let me explain how.
Visit Compound Finance at the link below using an Ethereum Wallet to begin: https://compound.finance/
What is Compound Finance?
Compound Finance is a decentralized finance (DEFI) company that is famous for being Coinbase's first investment. Compound Finance operates on the Ethereum Blockchain and is a truly decentralized venture. Compound has an excellent development team, and is lead by Robert Leshner and supported by Geoffrey Hayes formerly of Postmates. The team is made of software developers and economists who ensure the system runs smoothly.
In order to earn interest on your cryptocurrency assets including DAI, ETH, BAT, and REP, you supply liquidity to the system. To do so, you must enable the cryptocurrency you wish to supply and add your asset to the liquidity pool. The system then provides you with a variable interest rate based on the current supply/demand situation for the asset. The interest rates vary, and currently BAT offers a 0.38% APR. Supplying assets for the Compound liquidity pool also enables the user to borrow cryptocurrency at a similarly variable interest rate.
If you want to borrow assets, this is a possibility on the Compound Finance Project. You need to supply collateral to the Compound Finance liquidity pool. You can then borrow cryptocurrency, but bear in mind that you will need to pay this loan back with interest. If the value of your collateral provided dips below the value of the loan, you will face liquidation of your supplies asset to cover the distance. In a bull market, you may be able to take a loan and sell the borrowed asset to cover the loan and make a profit. As a Publish0x publisher and curator, you are awarded BAT and DAI weekly.
Consider supplying this cryptocurrency to a legitimate decentralized finance service. DAI and stable coins typically provide the highest return on your investment, and may offer between 7-8% APR in bear markets. As we enter into a bullish cycle, risk assets offer higher returns as the supply/demand tilts towards those who bet on continuously rising prices. Good luck, and consider this service.
Originally published in my Publish0x account I own at:
https://www.publish0x.com/introducing-myself-on-publish0x-wstanley224/compound-finance-defi-done-right-and-a-great-place-to-put-yo-xgerxe
Also published in my Hive.io account at anarchy999 and my Steemit account at anarchy999.
Sources:
Picture from Pixabay.
https://medium.com/compound-finance/the-compound-guide-to-supplying-borrowing-crypto-assets-94821f2950a0
