A GUIDE TO BUILD OWN DECENTRALIZED LENDING AND BORROWING WITH DEFI PROTOCOLS

Published On October 29, 2020
A GUIDE TO BUILD OWN DECENTRALIZED LENDING AND BORROWING WITH DEFI PROTOCOLS

DeFi lending and borrowing platforms enables crypto users to deposit and hold their funds with the help of smart contracts, from where any other users can borrow the fund and give interest on them. Each lending and borrowing is collateralized by crypto without any presence of an official financial institution as an intermediary.

Coinjoker DeFi Lending and Borrowing platform development company builds your peer to peer(p2p) defi lending online platform with smart contract and blokchain implementation. We build your defi lending platform development with various features like charge loan origination fees, late fees, and bounced-payment fees top-performing category in terms of ROI.

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Benefits of DeFi Lending and Borrowing Platform Development

DeFi lending platform gives tremendous benefits to the crypto users, lenders and borrowers to access the cryptos at the bottleneck time. Here we list out 

  • Borrowers can get a loan for a longer period of time 
  • Annual Percentage Rate(APR) can be lower than in banks
  • Users don’t need to get all their documents in order for verfication
  • Allows P2P transactions without giving any personal information
  • Every user receives the right conditions for a loan under their own terms. The loan amount is determined by the amount and type of collateral
  • Loans are distributed instantly among the borrowers
  • No physical collateral. Users only risk the tokens you put up, and they remain in your wallet
  • DeFi lending can be used anywhere in a country with an inefficient or untrustworthy banking system
  • Allow users to access wide range of currencies

How to start defi lending and borrowing platform?

Coinjoker's lending and borrowing defi development solutions follows these below mentioned steps to makes the users lending and borrowing the cryptos. 

1. Analyse and gather the different kinds of cryptocurrencies to lend and borrow.
2. Know the interest rate of lending and borrowing cryptos. Two types of interest rates like variable and fixed interest rate.
3. Choosing the type of wallet to being the borrowing process. If you have not wallet proceed with "continue without wallet"
4. Choose the token like ETH after that you need to see the offered rates.
5. Connecting a wallet with "wallet connect", the most common wallet like MEW wallet or otherwise creating a wallet.
6. Add ETH to wallet because need to fund the wallet 
7. Adding funds on the wallet, the money  will be automatically send to your desired wallet.
8. Borrow money option will show after that, the conditions of loan will show, the value and the amont of tokens and the borrowing interest rate will display.

How coinjoker's defi lending and borrowing platform works?

Our defi lending and borrowing platform development shows the process of lend and borrow of crypto tokens with smart contract and blockchain in a decentralized way. Check the process below.

DeFi Lending working process

1. Coinjoker's Peer-to-peer lending platform allows borrowers to receive funds from any individual investors who are volunteer to lend their own amount for an accepted interest rate. Our decentralized p2p online platfom connects both parties. 

2. Instead the presence of intermediaries, smart contract verify and authenticates the loan terms.

3. Once our inbuilt or customized smart contract (as per your requirements) has been deployed on ethereum blockchain, it is self-executing and can’t be pause unless both parties agree. 

4. Our ethereum blockchain is more transparency and immutability the lender earns high returns and also able to assess the borrowers risk more clearly.

DeFi Borrowing working process

1. DeFi borrower receive funds from lenders in lieu of their crypto assets like, which act as collateral without the repayment of the loan.

2. It happens only after the met of set of conditions written in smart contracts, they have also mentioned the specific interest rate for loan. The loan amount will credited to the borrower account, and tha borrower will pay as EMI for lender

3. Once the amount is paid back in full, the lender releases the collateral that acted as security.

4. Conversely, borrowers can also use their fiat currencies as collateral to obtain crypto assets.

DeFi Lending/Borrowing Protocols

Coinjoker listed the most popular protocols which allows users to put their funds into smart contracts and blockchain.

Compound

Compund is popular open access protocol with smart contract built on ethereum blockchain. It helps to hold their digital assests in the protocol

Aave

Aave is an open-source DeFi lending protocol where lenders can deposit the cryptocurrencies in the pool and receive an equivalent amount of aTokens.

Maker

Maker is a unique DeFi crypto lending platform that lets it borrow only DAI token, and to use as collateral, for now, it allows only ETH and BAT, which makes it different from Compound protocol.

Nuo Network

Nuo Network is a decentralized debt marketplace that gathers lenders and borrowers across the world using smart contracts. There is no native token and the interest rates are adjusted algorithmically. 

InstaDApp

InstaDApp is a multi-purpose DeFi platform that manages digital assets. It provides varieties of DeFi services like lending, borrowing, swap, leverage, etc. Look at it as a DeFi bank that allows you to integrate your services to serve your purpose

Dharma protocol

Dharma protocol is tokenized debt and funding decentralized platform where lenders, borrowers, and other fund managers trade and transact with the other.

dYdX

dYdX brought margin trading, options, and derivatives to the blockchain space, which are normally found in fiat markets and common for traditional investments.

bZx

bzx supports lending and borrowing with Basic Attention Token, Kyber Network, 0x, Chainlink, Ethereum, Augur, sUSD, USD Coin, Bitcoin, Dai, and Sai.

Wanna Create Your Own DeFi Protocol Like Uniswap>>

Advantages of DeFi Lending and Borrowing Development

  • Transparency and price efficiency
  • Ease of access and speed
  • Censorship resistance and immutability
  • Greater capital access
  • Flexibility and loan segregation
  • Lower set up costs/turnaround time
  • Borrowed capital across platforms and trading venues
  • Full custody of funds
  • Enter into margin trading in restricted juridictions.

Usecase of Crypto Lending and Borrowing

  • Single platform for crypto asset lending 
  • Non-taxable liquidity
  • Arbitrage Trading
  • Margin trading
  • Flash loans

Admin Benefits of DeFi lending and borrowing platform

1. Transparency 
2. Easier Access to Asset
3. Greater Speed, Utility, and Flexibility 
4. Price Efficiency
5. Censorship Resistance and Immutability 

Users Benefits of DeFi lending and borrowing platform

1.Margin Trading
2. Reward from Long-term Investment
3. Arbitrage between DEXs and CEX

Where to start defi lending and borrowing platform development?

Coinjoker a best defi development company build defi lending and borrowing development solutions which are more flexible, secure and scalable. Our decentralized p2p lending platforms offer several benefits like added security, transparency & accountability.

Our team of 100+ blockchain developers having 5+ years in blockchain technology who are now doing their revolution in most popular technlogy DeFi also. We have taken and launched various DeFi related projects in the past days, and receive positive feed back from the clients. 

Expertise

Blockchain Development : Bitcoin, Ethereum, Hyperledger, Corda, and more.
Mobile App Development : Android Native, iOS Native, React Native, Flutter, Xamarin.
UI/UX Design : Strategy, Planning, UI/UX Design, Wireframing, Visual Designs.
Web App Development : Node.JS, Angular, React.JS, PHP.
Backend Development : MongoDB, MySQL, AWS, Firebase.

Contact our experts by filling out the form below to Build your DeFi lending and borrowing platform.

Tags : defi lending development defi lending/borrowing development defi lending protocol development defi development defi lending borrowing development company
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