New platforms are allowing users to lend and borrow cryptocurrencies for profit — and threatening to make traditional financial intermediaries obsolete.

Decent article on lending bitcoin, altcoins, or stablecoins out. The conclusion at the bottom is the money shot:

“At the end of the day, DeFi is still a far more dangerous spot to park your money with risks not well-understood by the average investor. All DeFi protocols run the risk of software bugs and/or copycats that can, in the worst case, drain liquidity completely. In addition, there is obviously no FDIC insurance protecting the deposits.”

  • sgornickOP
    1·
    4 years ago

    Lend at HodlHodl isn’t mentioned but it is different from the rest of the lending / yield methods.

    With HodlHodl Lend, you lend out USDT or USDC, but the borrower’s collateral (bitcoin) is in an multisig contract and you have one of the three keys needed for the 2-of-3 signature contract. You don’t need to trust a BlockFi or anything like that.

    Additionally, you can lend out USDT on Liquid network, and thus you can lend USDT without having to pay any on-chain fees (whereas, lending out USDC would cause you to have to pay gas fees.)

    Live offers from the Offer list from this Tweet by HodlHodl