Binance Smart Chain DEFI loan projects you may want to pay attention to in 2021 and beyond

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It may be worth keeping an eye out for Binance Smart Chain, one of the emerging DeFi blockchains on the market today.

There are some parallels between decentralized loans and the traditional services provided by financial institutions. The big difference is that in the decentralized finance industry (DeFi) there are no middlemen to consider. Users can provide guarantees and borrow funds through smart contracts, although the exact stipulations may vary from service to service.

One of the benefits of decentralized finance is the untrustworthy environments that users can interact with. All interactions and transactions are recorded on a blockchain to present an immutable set of information to avoid any harmful activity or confusion. With this technology, the loan between individuals has become one of the crucial pillars of this industry. Rather than dealing with individuals, users can now lend and borrow from cash pools. This is a robust approach that removes all the middle men from the equation and provides a more cost effective solution.

It is not difficult to find DeFi loan service providers. Many projects have been deployed on various blockchains, and others are still in development. It may be worth keeping an eye out for Binance Smart Chain, one of the emerging DeFi blockchains on the market today.

There are several aspects that set Binance Smart Chain apart from other blockchain ecosystems. It offers much more efficient transaction fees and high throughput thanks to its three second block interval. Speed, efficiency, and low fees are essential to any DeFi loan solution for building a team, as their services need to be both accessible and affordable.

Below are some examples of popular decentralized financial lending protocols that currently reside on the Binance Smart Chain:

Finance Cream

The Cream Finance project, built on the Compound protocol, provides users with DeFi lending and bad borrowing solutions. The platform is known for its modified pool assets and the native governance token, giving holders a say in the future of this protocol.

Venus

Venus serves as a decentralized marketplace for lenders and borrowers looking to explore borderless stablecoins and their potential. With Venus dApp, it is possible for users to provide collateral and borrow up to 75% of the value of their holdings. Their choice to rely on Binance Smart Chain allows the team to manage a digital marketplace to trade currencies and assets seamlessly.

Fortube

As one of the rising cross-chain DeFi solutions, Fortube tosses its hat into the DeFi lending circle. The protocol currently supports Ethereum, Binance Smart Chain, Polygon, and OEC, with more blockchains to be added in the future. Fortube wants to position itself as the leading DeFi digital asset bank.

Multiply.finance

Multiply V2 is a non-custodial lending protocol on Binance Smart Chain with a variety of intriguing features. Options to explore include collateral swap, batch flash loans, and collateral repayment, with stable and variable loan rates. The recently updated protocol provides functionality similar to Aave on Ethereum, but in the Binance Smart Chain environment.

BSC loans comparison table

In the world of DeFi loans, it is crucial to explore how protocols differ from each other. The overview below shows the different approaches that protocols can take to meet user needs.

Obviously, Multiplier V2 is a very different DeFi lending platform from the others on this list. The service has many tools and features that users can take advantage of as they wish. The continued evolution of DeFi products and services will enable even more complex lending solutions in the future.

Multiplier Finance has been audited by CertiK and Kudelski Security. To ensure maximum security and peace of mind, user assets are covered by CertiKShield and Soteria Finance.

Closing thoughts

Many people expect DeFi loans to bring more financial equality globally. As these services are unlicensed and global, they can disrupt traditional banking operations by leveraging blockchain technology and crypto assets. The term “open finance” is more applicable than “decentralized finance” because it is a movement to bring financial products and services to everyone. More importantly, it inaugurates a financial paradigm without intermediaries.

Start borrowing and lending now! And always remember DYOR – Do your own research.

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Author: Andrei Sergeenkov
Cryptocurrency investor, journalist, analyst and growth hacker. I cover crypto, blockchain, crowdfunding, and education.

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