Since the start of the crypto boom, the movement of Decentralized Finance projects have increased. New DeFi projects are popping up on different blockchains. From tokens to protocols, it seems that when you blink, you miss a project.
One of such projects is Holdefi, a DeFi project that allows crypto holders to lend and borrow with their crypto assets.
Holdefi, An Introduction
The DeFi space is mimicking the fintech space. Blockchain and crypto developers are creating apps that perform similar functions as fintech apps. In the crypto space, lending and borrowing is a huge part of DeFi. Users have utilized it as part of the use-cases that decentralized finance offers.
As the name implies, Holdefi is an Ethereum mainnet and Binance Smart Chain multi-chain decentralized lending platform where users can hold their assets to earn interest or borrow tokens and receive superior yields. What the platform offers is a suitable alternative to traditional banks. While banks will require mostly physical collateral for loans, Holdefi allows users to provide liquidity to a given pool. Simultaneously, the user can then borrow loans from the same pool and repay the principal with reasonable interest within a period of time.
What makes the platform stand out is the absence of cumbersome paperwork and impossible to pass KYC. All that is needed is the collateral: your digital assets. However, it’s expected that the value of assets to be borrowed be lower than the collateral. This is merely to ensure repayment of the loan.
Holdefi gives value to the lender using a fair metric. With this mechanism in place, lenders can take loans and pay interests with more predictable and stable rates. Upon non-payment, the Holdefi mechanism will automatically liquidate the collateral.
What Makes This Platform Different?
Holdefi is a state-of-the-art DeFi solution built on the Ethereum protocol and Binance Smart Chain. The project is planned to run flawlessly on Ethereum’s current PoW protocol while still being future-ready to function on ETH’s forthcoming PoS update and BSC. It is powered by a native ERC20 standard HLD token.
In addition, Holdefi’s functionalities are powered by smart contracts. Instead of just sending and/or receiving cryptocurrencies, smart contracts enable crypto software developers to create highly sophisticated algorithms that expand the DeFi’s capabilities. With these capabilities, the middleman is eliminated. There are just two principal roles: the supplier and the borrower. While the borrower puts down their collateral to borrow funds, the lenders deposit their collateral and generate profits.
Users of the platform can deposit and borrow Bitcoin, Altcoins, and stablecoins like USDC, USDT, BUSD, DAI, etc.
The protocol on which the platform is built self-determines interest rates using a new mechanism in order to give borrowers better rates. With this mechanism, borrowers would be rest assured that they won’t be paying outrageous interests as interest rates are more stable and predictable.
Unlike other platforms, Holdefi isolates the supply pool from the collateral pool, which preserves users’ assets and ensures borrowers. This mechanism ensures that the collateral remains intact by using separate decentralized channels.
Also, borrowers can access loans using only one digital asset as collateral. However, each collateral can be used to borrow several different assets.
Should You Consider This Platform?
Lending projects on the DeFi space are numerous. Holdefi seems to offer real value to its users that make it triumph over other platforms. Most notable is in the area of collateral. Holdefi collateral does not earn interest compared to other protocols as it is isolated from the borrow and loan bucket.
Holdefi is designed to be fully decentralized. However, the lending protocol must issue a native token with one primary objective in mind: decentralized governance. As such, Holdefi recently sold a total of 2 million HLD tokens in a public sale.
Holders of HLD tokens will have expanded rights to decision-making within the protocol once the governance capabilities of the tokens are activated, as the team intends for the token to become a fully community-driven project. You might want to hop on.
For additional information, visit holdefi.com to learn more.