Earn interest on your crypto assets by lending or staking them. Both lending and staking can be done with centralized wallets or non-custodial options.
Crypto saving accounts powered by centralized providers take your deposits and lend them to vetted institutional borrowers who pay interest for the loan.Compare savings accounts
DeFi lending protocols let you lend your crypto assets and earn interest on the Blockchain - available to anyone in the world without identity verification or paperwork.Compare DeFi lending protocols
Ethereum staking platforms let you participate in the transaction validation process of the Ethereum network - called Proof-of-Stake. When you stake your Ether (ETH) you earn rewards paid in ETH.Compare staking protocols
Whether it’s a centralized saving provider or DeFi - you want to use a platform that is secure. Time is the best proof-of-security. Check how long a platform has been running without major hiccups.
Ease of use
A good and user-friendly interface goes a long way to make a platform enjoyable to use. The whole process should be straightforward and if there are questions left customer support should be in reach.
Total value locked is a metric that is commonly used to assess popularity of a lending platform. It refers to how much funds have been deposited by users. It demonstrates confidence in the platform and popularity.
DeFi protocols typically take significantly less fees than centralized saving apps as they exist to cut out the middlemen. When you lend funds on a DeFi platform you are matched to a borrower through a smart contract - no operational costs.
Crypto savings accounts work in a similar way to normal bank savings accounts. In a nutshell, you lend money to an institution, which lends your assets to borrowers in need of liquidity. However, these loans are relatively secure since the loan providers ask the borrowers to deposit crypto assets themselves, as security for the loan. Most providers ask for a ‘loan-to-value’ ratio of 50% meaning that if a borrower wants $1000 they’ll need to deposit $2000 worth of crypto assets as security for the loan.
Broadly speaking, the borrowers are institutions and sometimes individuals that hold cryptocurrency and need short-term liquidity but don’t want to sell their cryptocurrency. Examples of companies using crypto-backed loans are miners, venture capital funds and most importantly trading firms.
Yes, both DeFi and centralized lending platforms can theoretically be hacked. Centralized lending platforms store unser funds in centrally managed wallets which could be hacked. DeFi platforms are managed through smart contracts which could have bugs.
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