Ultimate Guide to Ethereum Lending: ETHLend, MakerDAO, BlockFi, SALT, Dharma & Compound

  • Because of this pseudonymous nature, decentralized loans must use collateral to guarantee loans and crypto assets such as Ether function as that collateral.
  • Conversely, if MKR token holders govern the system badly so that CDPs do not have enough collateral, new MKR tokens are automatically created and sold, bringing the system back to sustainable levels, but also effectively decreasing the price of MKR.
  • BlockFi is backed by institutional investors and also has its loans secured by Gemini, a New York trust company regulated by the New York Department of Financial Services, so it is among the most regulated and compliant lenders on this list.
  • There are blockchain lending platforms that function as a marketplace where lenders offer loans and terms for loans and borrowers signal the loans and terms for loans that they are looking for.
  • This type of marketplace is also called peer-to-peer lending where one user offers to lend money at a certain rate and for certain types of collateral and other users can either accept or deny their offers.

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