Place/Date: - May 30th, 2022 at 4:08 pm UTC · 4 min read
Source: Sanzooz Finance
While the finance and capital market is still figuring out how to adopt digital transformation, crypto projects such as Sanzooz Finance (SZFT) are pushing back against the current norm. They’re taking a page from their competitors’ books and creating new value through digital transformation.
The two DeFi platforms, Aave (AAVE) and Compound (COMP) have tried to demonstrate their permissionless nature and minimalistic interface to greater lengths; neither of them has been able to offer stable rates to contributors, which the Sanzooz (SZFT) has covered.
Let us look at these platforms in-depth and how they have marked a new dawn for Sanzooz (SZFT) token.
Aave (AAVE) is a decentralised finance protocol that enables members of its community to borrow and lend cryptocurrency without the involvement of intermediaries.
By doing this, lending users can earn interest, while borrowing users are supposed to pay interest.
Based on the Ethereum blockchain, Aave (AAVE) is an open-source DeFi protocol featuring a smart contract system that supports the management of all crypto assets.
Aave software supports the development of a lending pool. This tool lets users borrow or lend different cryptocurrencies, including Decentraland (MANA) and Ethereum (ETH).
One of the essential features of the platform is the ability of the users to earn interest in real-time. In addition, the flash loan option enables the opportunity to borrow crypto without any collateral.
The Compound (COMP) is an Ethereum-based software built to incentivise a distributed network of computers to operate a traditional money market.
The software uses crypto assets to provide services, enabling lending and borrowing without financial intermediaries like banks.
Compound (COMP) allows its users to deposit their crypto into lending pools to be accessed for borrowing. The lenders then earn interest on the assets that are borrowed.
The software rewards its lenders with COMP tokens based on the number of tokens available in their wallets and varying interest rates based on varying interest rates on the supply of that asset.
This means that the more liquidity the asset in the market, the lower the interest rate.
As a member of the Ethereum (ETH) blockchain, Sanzooz Finance (SZFT) is a new option for some of the loopholes and unanswered questions posed by the two platforms above.
Aware of the difficulties encompassing the development of fixed interest rates, they have proposed an original framework that enables the members to decide on the respective interest rates collectively.
The users have to decide this by choosing among two options. Either go about by a non-fixed liquidity provider or partake in what can be an open auction.
Using Sanzooz Exchange to trade has many benefits over centralised exchanges and order book-based decentralised exchanges. Due to the absence of the order book, all traders will be executed against this contract directly, peer-to-contract.
Using price feeds supplied by oracle, assets will be assigned an exchange rate and converted using the Sanzooz Exchange dApp. This results in infinite liquidity up to the value of the system’s collateral, zero slippage, and permissionless on-chain trading.
Furthermore, the Sanzooz Finance (SZFT) system is built to convert debt from one asset to another during the exchange.
This, in turn, results in infinite liquidity between assets with no record of the debt change as the source of assets value is burned and the destination assets value is minted. Such features are only available on the Sanzooz platform.
Although Aave (AAVE) and Compound (COMP) have tried to make significant steps to change the financial world, Sanzooz Finance (SZFT) still seems to take wider strides in the industry.
With its robust platform, both decentralised and permissionless, the platform aims to bring down the cost of financial transactions while simultaneously providing more security and transparency.
Again, the Sanzooz platform’s options enable the members to choose between different options, either go about by a non-fixed liquidity provider or partake, which is a unique feature only available in this platform.
For more on Sanzooz Finance (SZFT) visit: Website, Presale, Telegram, Twitter, Instagram.