• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
Bitcoinist.com
No Result
View All Result
DeFi collateral
Nexo

Chainlink Integrates Real World Assets Into DeFi On Ethereum

Martin Young by Martin Young
2 years ago
in Ethereum, Altcoins
0
Advertisement

Developments in decentralized finance are coming thick and fast as the ecosystem evolves. The latest offering from Chainlink and DMM acts as a bridge between Ethereum crypto assets and real world assets.


DeFi Money Market Bridges The Gap

A recent announcement by Chainlink has unveiled a collaboration with the DeFi Money Market (DMM), which offers higher yield money markets on the Ethereum mainnet backed by tokenized real world assets.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

The article asserts that there will be exponential growth for crypto assets in the coming years as fiat currencies are increasingly converted into digital ones. The current total crypto market capitalization of around $250 billion is miniscule compared to the estimated $90 trillion of physical money and money held in easily accessible accounts in the world.

The vast majority of this money is earning virtually nothing in terms of interest and could soon be in negative interest territory if the central banks keep dropping rates and printing money.

“Herein lies a massive opportunity to capitalize on declining yields in traditional money markets through the creation of higher yield decentralized money markets via blockchain technology.”

Defipulse, which today reports a total value locked of $967 million, added that banks had better watch out …

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

1/ Banks better watch out because the dream of integrating real world assets into #DeFi is becoming a reality.

Take for example @DMMDAO which acts like a bridge between crypto and fiat using @chainlink oracles to offer car loans funded by stablecoins. https://t.co/Z6Sqi36XFj pic.twitter.com/yTOL63t79W

— DeFi Pulse 🍇 (@defipulse) March 2, 2020

DeFi markets will allow borrowers to pledge real-world assets represented on-chain as collateral for crypto asset loans and DMM aims to create the first blockchain-based money market to bridge this gap.

Effectively it will enables low-risk investors the ability to lend crypto currency for passive interest income. Borrowers can receive crypto currency loans for short-term capital by pledging their real-world assets as collateral.

At the moment crypto collateral can be pledged to earn interest on stablecoins such as through the Dai Savings Rate which currently offers a bank beating 7.5%.

Chainlink’s decentralized oracle network comes into play allowing DMM to obtain on-chain information about these tokenized assets based on a secure connection to reliable sources of data off-chain.

The Medium goes into much greater detail on how this is achieved showcasing how the collaboration has resulted in a new money market that is collateralized by $10 million in tokenized car loans on Ethereum.

Assets backing DMM can include vehicles, property and other ‘hard’ real world assets, which are income generating. They are secured through a first lien, senior-secured position which has first rights to sell the assets on failure to repay the loans, just like a bank.

The partnership is another step in the evolution of the rapidly moving DeFi market which is one of the most vibrant aspects of the crypto ecosystem this year.

Will ETH and LINK prices benefit from new DeFi solutions? Add your comments below.

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Martin Young

Martin Young

Martin has been writing on technology for 15 years, he has a keen eye for emerging cryptocurrency news, blockchain developments, and market sentiment.

Related Posts

GPU Prices Decline 57% Since Jan As Ethereum Mining Profits Go Down

GPU Prices Decline 57% Since Jan As Ethereum Mining Profits Go Down

8 hours ago
Snoop Dogg NFT

Snoop Dogg Still Bullish On Ethereum Despite NFT Trades Declining 70%

2 days ago
Ethereum

Ethereum Energy Consumption Sees Sharp Decline As Mining Profitability Drops

6 days ago
Morgan Stanley: Ethereum 2.0 Launch May Reduce Demand For GPUs

Morgan Stanley: Ethereum 2.0 Launch May Reduce Demand For GPUs

6 days ago
Ethereum

The Metric That Says A Further 50% Drawdown For Ethereum Is Possible

6 days ago
Hackers Ethereum

How This Ethereum Lending Platform Was Attacked And Made A Deal With The Hacker

6 days ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.