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Binance Smart Chain DEFI Lending Projects You May Want to Pay Attention to in 2021 and Beyond

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by Andrey Sergeenkov · 4 min read
Binance Smart Chain DEFI Lending Projects You May Want to Pay Attention to in 2021 and Beyond
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It may be worthwhile to keep an eye on Binance Smart Chain, one of the emerging DeFi blockchains on the market today.

There are certain parallels between decentralized lending and the traditional service financial institutions provide. The big difference is how, in the decentralized finance (DeFi) industry, there are no intermediaries to consider. Users can supply collateral and borrow funds through smart contracts, although the exact stipulations may vary from one service to the next.

One of the benefits of decentralized finance is the trustless environments users can interact with. All interactions and transactions are recorded on a blockchain to present immutable information set to avoid any nefarious activity or confusion. With this technology, peer-to-peer lending has become one of the crucial pillars of this industry. Rather than dealing with individuals, users can now lend and borrow from liquidity pools. It is a robust approach that removes all intermediaries from the equation and provides a more cost-effective solution.

It is not difficult to find DeFi lending service providers. Numerous projects have been deployed across various blockchains, and more are still in development. It may be worthwhile to keep an eye on Binance Smart Chain, one of the emerging DeFi blockchains on the market today.

Several aspects set Binance Smart Chain apart from other blockchain ecosystems. It provides much more efficient transaction fees and a high throughput thanks to its three-second block interval. Speed, efficiency, and low fees are crucial to any team building DeFi lending solutions, as their services need to be both accessible and affordable.

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

Cream Finance

The Cream Finance project, built on the Compound protocol, provides DeFi lending and bad borrowing solutions to the users. The platform is known for its altered pools 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. Through the Venus dApp, it is possible for users to provide collateral and borrow up to 75% of their holdings’ worth. Their choice to build on Binance Smart Chain allows the team to run a digital marketplace for trading currencies and assets transparently.

Fortube

As one of the up-and-coming cross-chain DeFi solutions, Fortube throws its hat in the ring of DeFi lending. 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.

Multipler.finance

Multiplier 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 lending rates. The recently updated protocol provides functionality similar to that of Aave on Ethereum, but in the Binance Smart Chain environment.

BSC Lending Comparison Chart

In the world of DeFi lending, it is crucial to explore how protocols differentiate themselves from one another. The overview below shows the different approaches protocols can take to cater to the needs of users.

Evidently, Multiplier V2 is a very different DeFi lending platform compared to the others on this list. The service has a lot of tools and features suers can enjoy at their leisure. The ongoing evolution of DeFi products and services will allow for even more complex lending solutions in the future.

Multiplier Finance has undergone an audit by CertiK and Kudelski Security. To provide optimal security and peace of mind, users’ assets are covered by CertiKShield and Soteria Finance.

Closing Thoughts

Many people expect DeFi lending to bring more financial equality globally. As these services are permissionless and global, they can disrupt traditional banking by leveraging blockchain technology and crypto assets. The term “Open Finance” is more applicable than “decentralized finance”, as it is a movement to bring financial products and services to everyone. More importantly, it ushers in a financial paradigm without intermediaries.

Start borrowing and lending now! And remember to always DYOR – Do Your Own Research.

Guest Posts
Julia Sakovich
Author: Andrey Sergeenkov

Cryptocurrency investor, journalist, analyst, and growth hacker. I cover crypto, blockchain, crowdfunding, and education.

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