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How DeFi Revolution Is Changing Lending and Investment

UTC by Andy Watson · 5 min read
How DeFi Revolution Is Changing Lending and Investment
Photo: Raise / Twitter

For those looking for investors to help their business grow, decentralized peer to peer lending platforms like Raise can offer an opportunity that is nor similar to anything that existed before.

DeFi has the potential to transform our lives in so many ways – from small, everyday things like how we pay for goods, all the way up to how we vote.

One key area where DeFi is already making strides is investment. Decentralized peer to peer lending platforms are reshaping the old financial system. One of these platforms, Raise, has decentralized the lending process, using smart contracts to underpin each transaction and making crypto the base for its platform.

Raise is giving crypto investors the chance to make great gains on their investments while supporting businesses that need it. But, while decentralized peer to peer lending platforms make it easier for investors to make money and borrowers to secure funding, some of the fundamental changes brought about by DeFi are altogether more surprising.

Raise Is Connecting People through DeFi

At a time when many of us are becoming disconnected from one another, DeFi has emerged with the potential to change everything.

With blockchain’s open-source network as its basis, DeFi gives people throughout the world the chance to connect and collaborate – all without an intermediary or ‘middleman’ getting involved.

This is exemplified through this new, decentralized form of peer to peer lending, which has the potential to completely redefine the very notion of trading, investing and borrowing. Connections are being made that weren’t previously possible.

It’s a borderless system that benefits the individuals, rather than corporations. It empowers people the world over, particularly from countries that have been historically excluded from the story of their own financial success.

DeFi is cultivating a free-flowing, win-win situation – for investors and lenders – that, crucially, is built upon a system based on fairness, trust and transparency.

DeFi Benefits Investors

Just in terms of the user experience, decentralized peer to peer lending is giving investors something they’re not used to. Efficiency and ease of use aren’t two words you’d normally associate with the investment industry.

It’s definitely a selling point with Raise and it’s the first thing that really hits home with those first-time DeFi peer-to-peer investors. A quick and simple registration process such as the one Raise offers means users can start investing very quickly.

Once they do get investing, the high ROI becomes apparent. In fact, it’s generally a lot higher than other forms of investment. This is partly down to the nature of DeFi, which strips away all the unnecessary fluff that clogs up systems and costs a lot.

This is what makes it possible for peer to peer lending to exist without charging fees for investors.

Efficiency, ease-of-use and money-making aside, DeFi enables people to invest in things they care about. It’s not just about watching your money grow, as nice as that is. It’s much more meaningful.

We’re coming to a point in history where most of us want to be more ethical and to attach more meaning to the things we do. Through DeFi, this new form of peer to peer lending enables each investor to earn while making a difference.

It may seem like a drop in the ocean. But every single drop counts. And the tide is turning.

DeFi Benefits Borrowers

For those looking for investors to help their business grow, decentralized peer to peer lending platforms like Raise are offering an opportunity that’s unlike anything that came before.

While previously, borrowers were tethered to local banks when they needed to borrow money to help get their business off the ground, DeFi removes all boundaries. Through pioneering platforms like Raise, borrowers can connect with investors around the globe, from San Francisco to Singapore and everywhere in between, giving them a much better chance of securing funds from the right investor.

Borrowers choose the interest rate and loan term and, crucially, keep control of their own business – unlike crowdfunding, for example, DeFi peer to peer investors don’t have a steak in the lender’s business.

DeFi gives lenders a greater degree of control, with a process that’s fair, transparent and straightforward. The deal is sealed with a blockchain-based smart contract, which is self-regulating. Once it’s set up, it relies solely on internal mechanisms, with no outside interference necessary.

This is a good incentive for lenders. They can enter a deal with an investor from a different part of the world, with no need for trust to come into the equation. DeFi makes trust a given, leaving lenders to focus on getting the best leverage for their business.

In the long run, this unrestricted access to funding will prove to be a massive stimulus to emerging industries, particularly to those in developing countries. We will potentially see a huge redistribution of wealth, with ideas and innovation spreading from every corner of the globe – something that will benefit everyone for generations to come.

DeFi Is Changing Lives

What’s clear, is that new DeFi-based peer to peer platforms like Raise are offering their users something unprecedented. Through decentralized finance they are able to create an environment for investors to make substantial gains and to even to set up a passive income.

What sets decentralized peer to peer lending apart is the potential to change investment and lending – and ultimately lives – with its scope, its speed, its efficiency and its transparency.

And, after what seems like an eternity spent within a rigid, laborious, bureaucratic, corrupt system, the change is most certainly a welcome one.

Raise is a loan marketplace that connects individuals with investment opportunities primarily in emerging countries. Leveraging Blockchain technology, Raise is a transparent and secure platform that allows investors to earn great returns while borrowers are able to grow their own businesses.

New loan and a 15% APR is coming soon. Sign up on the waitlist and be the first to know when the loan goes live. Psst, sharing the news with your friends will help you win cashback rewards!

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