Top 10 TVL-Based Crypto Lending Platforms | Stable DeFi investments?

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Urian B., Tech Times January 07, 2022, 9:01 p.m.

With crypto lending becoming a massive thing in the crypto space, many investors who like to avoid trading are looking for places to borrow and borrow their crypto. With this, crypto lending platforms have become more popular as a solution for hodlers to hold their crypto while still being interested in it or borrowing crypto.

Importance of TVL in loan protocols

According to a tweet from Ben GCrypto, when it comes to crypto lending protocols, TVL is the most important indicator to assess its scale of adoption. To add, this can be done by calculating the total value locked in a particular corresponding smart contract.

When investing in a crypto lending protocol, the loan provider must have enough TVL that can be used as capital to lend to borrowers. As with banks, crypto lending protocols make money by lending cryptocurrency.

Why having a large TVL helps

The larger the TVL, the more a certain cryptographic protocol is able to lend, resulting in greater profits. To add, a larger TVL also indicates high confidence in that particular protocol, minimizing the chances of it falling to the ground.

Here are the 10 best crypto lending protocols by TVL

AAVE

Cryptocurrency Ticker: AAVE Total Locked Value: $ 13.12 Billion Blockchain Used: Ethereum

Anchor protocol

Cryptocurrency Symbol: ANC Total Locked Value: $ 8.35 Billion Blockchain Used: Terra

Compound

Cryptocurrency Symbol: COMP Total Locked Value: $ 8.19 Billion Blockchain Used: Ethereum

Abracadabra

Uses MIM cryptocurrency Total Locked Value: $ 6.03 Billion Blockchain Used: Ethereum

Finance Cream

Cryptocurrency Ticker: CREAM Total Locked Value: $ 2.18 Billion Blockchain Used: Ethereum

Venus

Cryptocurrency Symbol: XVS Total Locked Value: $ 1.85 Billion Blockchain Used: Binance

Just lend

Uses JST Cryptocurrency Total Locked Value: 1.69 Billion Blockchain Used: TRON

Benqi

Cryptocurrency Ticker: IQ Total Locked Value: $ 1.57 Billion Blockchain Used: Avalanche

TrueFi

Cryptocurrency Symbol: TRU Total Locked Value: USD 887 Million Blockchain Used: Ethereum

Spirit Finance

Cryptocurrency Symbol: GEIST Total Locked Value: USD 701 Million Blockchain Used: Fantom

Also Read: Top Crypto Falls Dangerously Low To 15 On Fear And Greed Index | Market in a state of extreme fear at $ 42,868

Make sure you familiarize yourself with the network of loan protocols

When you invest in a project or participate in a loan protocol, it is also important to know which blockchain they are built on. Indeed, having assets from one blockchain and having to link them to another blockchain can be quite taxing.

While it is possible to link assets, for example, from Ethereum to Terra, if users don’t do this efficiently, users will end up spending too much money on gas costs, making the entire much more expensive process. Another important thing to note is that participants must also find the cheapest way to profit from the assets of each blockchain like Binance, Huobi or others.

Related Article: Highest Cryptocurrency Drops To $ 46.6,000 With Fear And Greed Index Reaching “Extreme Fear”

This article is the property of Tech Times

Written by Urian B.

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