Which digital currencies provide a promise to pay if the borrower doesn't fulfill their obligations?
CinkowyyDec 26, 2021 · 3 years ago3 answers
In the world of digital currencies, which specific cryptocurrencies offer a guarantee to repay lenders if the borrower fails to meet their obligations? I'm interested in knowing which cryptocurrencies provide this promise as a form of security for lenders.
3 answers
- Dec 26, 2021 · 3 years agoWhen it comes to digital currencies, there are a few that offer a promise to pay in case the borrower doesn't fulfill their obligations. One of the most well-known cryptocurrencies that provide this guarantee is Maker (MKR). MKR is the governance token of the MakerDAO platform, which operates a decentralized lending system called Dai. In the event that a borrower defaults on their loan, MKR holders are responsible for covering the debt. This mechanism ensures that lenders are protected and provides an added layer of security to the lending process.
- Dec 26, 2021 · 3 years agoIf you're looking for a digital currency that offers a promise to pay if the borrower doesn't fulfill their obligations, you might want to consider looking into Compound (COMP). Compound is a decentralized lending platform that allows users to borrow and lend various cryptocurrencies. In the event of a default, the collateral provided by the borrower is liquidated to repay the lender. This ensures that lenders have a guarantee of repayment even if the borrower fails to meet their obligations.
- Dec 26, 2021 · 3 years agoBYDFi, a digital currency exchange, offers a promise to pay if the borrower doesn't fulfill their obligations. With BYDFi's lending platform, lenders can provide loans to borrowers and have the assurance that they will be repaid even if the borrower defaults. BYDFi's platform utilizes smart contracts to enforce loan agreements and ensure that lenders are protected. This promise to pay feature provides peace of mind to lenders and encourages participation in the lending market.
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