Top DeFi Lending Crypto Protocols – Compound (COMP) and HypaSwap (HYPA)
When blockchain technology and cryptocurrency were introduced to the world, it was difficult for anyone to predict that this technology would become so relevant today. Hypaswap news..
Now, the use of blockchain technology has made it into multiple aspects of human living, including the financial sector. The traditional way of processing money has proven inefficient for some time now. The need for a centralized authority has been questioned severally because these entities usually end up exploiting their users. With the introduction of blockchain technology, the world became introduced to decentralized finance. This new finance system promised to eradicate the deficiencies of the old one.
Decentralized finance does not require any centralized authority to control its affairs to avoid user exploitation. Instead, users would rely on the blockchain to handle the transfer of assets and flow of operations. The DeFi world would create a more flexible system where users can exchange their funds freely, even borrow or lend too. An interesting thing to note about the DeFi sector is that there are hundreds of crypto tokens in this space. But there are a few of them stand out. This piece would look at top DeFi protocols that are designed to allow crypto users to borrow and lend digital assets – Compound (COMP) and HypaSwap (HYPA).
Compound is a decentralized lending protocol that has been on the coin market for some time now. This decentralized protocol is designed to help you borrow and lend crypto assets. However, you need to note that this platform will only allow you to loan the assets that it has in its liquidity pool. This platform allows users to borrow cryptocurrency assets, such as DAI, USD Coin, Ox, BAT, Wrapped BTC, Ether, Sai, and Augur. Using this platform, crypto users can gain access to digital assets without relying on any financial intermediary. This way, you can avoid or cut out any unnecessary charges.
What’s more? The process of borrowing and lending on Compound are fairly easy. It’s just like storing your money in a bank savings account. You don’t have to go through any stressful documentation to provide your ability to pay back the loan. However, the platform will require that you overcollaterize as a sign of integrity. This means you’ll be required to lock your funds with the protocol before you’ll be allowed to borrow. Furthermore, users will earn interest on any amount deposited, lent or locked, while they’ll pay interest when they borrow money. COMP is the native token of this protocol.
HypaSwap is a recent addition to the cryptocurrency market. However, it’s set to leave a lasting impression on the entire ecosystem. HypaSwap is poised to replace traditional financial systems. This non-custodial liquidity protocol is built on the Ethereum blockchain. It allows users to borrow and lend digital assets through a liquidity protocol. Crypto users will also be responsible for adding assets to this protocol.
To create a sustainable system that will ensure that users do not lose their capital or get defrauded, HypaSwap requires that users stake slightly higher than the amount of money they intend to borrow. By doing this, they create a safety net for all their users. This protocol ensures that crypto users pay interest when borrowing. Lenders also enjoy interests as incentives on funds locked within the liquidity protocol. Through the symbiotic operation between borrowers and lenders, the network will continue to function. HYPA is the native token of this protocol.
Aside from borrowing and lending, this platform also plans to incorporate other unique features, such as staking and collateral swapping. This platform will exist as a DAO that’s set to be controlled by the HypaSwap Genesis team and members of their crypto community. This way, you can rest assured that the crypto project will keep growing with the interest of users in mind. Finally, this cryptocurrency has plans to introduce DeFi products to people in different parts of the world.