Which cryptocurrencies are commonly used in DeFi lending platforms?

3 answers

• Dec 27, 2021 · 3 years ago
  In DeFi lending platforms, the most commonly used cryptocurrencies as collateral are Ethereum (ETH), Wrapped Bitcoin (WBTC), and Dai (DAI). These three tokens are widely accepted due to their liquidity, stability, and established reputation in the crypto community. Other popular cryptocurrencies used in DeFi lending include Chainlink (LINK), Aave (AAVE), and Compound (COMP). It's important to note that the specific cryptocurrencies accepted may vary depending on the lending platform, so it's always a good idea to check the platform's guidelines before depositing your assets.
  581291
• Dec 27, 2021 · 3 years ago
  When it comes to DeFi lending platforms, Ethereum (ETH) is undoubtedly the king. Being the second-largest cryptocurrency by market capitalization, Ethereum is widely accepted as collateral for borrowing and lending in the DeFi space. Additionally, Wrapped Bitcoin (WBTC), which is an ERC-20 token backed by Bitcoin, has gained significant popularity and is commonly used as collateral in DeFi lending. Other cryptocurrencies that are frequently used include stablecoins like Dai (DAI) and USDC (USD Coin), as they provide stability and reduce the risk of price volatility.
  572191
• Dec 27, 2021 · 3 years ago
  In the world of DeFi lending platforms, the most commonly used cryptocurrencies are Ethereum (ETH), Wrapped Bitcoin (WBTC), and Dai (DAI). These digital assets have gained widespread acceptance due to their liquidity, security, and compatibility with smart contracts. Ethereum, as the leading blockchain platform for decentralized applications, serves as the foundation for many DeFi projects and is often used as collateral. Wrapped Bitcoin, on the other hand, allows Bitcoin holders to participate in the DeFi ecosystem by converting their BTC into an ERC-20 token. Dai, a stablecoin pegged to the US dollar, provides stability and is widely used for borrowing and lending purposes. Other notable cryptocurrencies used in DeFi lending platforms include Chainlink (LINK), Aave (AAVE), and Compound (COMP), each offering unique features and benefits to users.
  859215