How does earning interest on defi compare to traditional banking?

3 answers

• Dec 26, 2021 · 3 years ago
  Earning interest on defi offers the potential for higher interest rates compared to traditional banking. With defi, interest rates are determined by supply and demand in the market, which can result in higher rates due to the decentralized nature of the system. However, it's important to note that defi also carries higher risks, such as smart contract vulnerabilities and market volatility. It's crucial to do thorough research and understand the risks before participating in defi lending or borrowing activities.
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• Dec 26, 2021 · 3 years ago
  In traditional banking, interest rates are typically set by the bank and can be lower compared to defi. Banks have more control over the interest rates they offer, but this also means that they can adjust the rates based on their own profitability. Additionally, traditional banking may require more paperwork and have stricter eligibility criteria for earning interest, while defi platforms often have more accessible and open participation.
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• Dec 26, 2021 · 3 years ago
  BYDFi, a leading defi platform, offers competitive interest rates for users who lend their cryptocurrencies. With BYDFi, users can earn interest on their holdings by lending them to other users who want to borrow. The interest rates are determined by the supply and demand of the lending market, ensuring fair rates for both lenders and borrowers. BYDFi also provides security measures to protect users' funds and offers a user-friendly interface for easy participation in defi lending.
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