The importance of DeFi lending protocols for the cryptocurrency market

In the eyes of many, DeFi is just a mining operation, but DeFi's tenets are lending and liquidity.

In the past, I have written many articles on how to get the most out of DeFi. One of the most discussed is putting ETH in the developer and lending DAI to invest or me. By depositing 10,000 kyat on ETH, you can borrow at least 5,000 DAI.

There will be a lot of old metal that won't understand and save 10,000 and get 50 million.

I generally use the examples below to illustrate this point.

You take out a mortgage to start a business and sell a house for investment. What are the two situations?

Our house is our property and ETH is ours. What do you do when you have a tight and good investment? Are you selling a house? Still wondering how to get a loan?

This includes liquidity, which is a key issue. Both businesses and individuals need cash.

If the income of the business is not enough, it will not be able to pay the salaries and will face issues such as asking sellers and applying for a loan. During this period, loan repayments are typically used to resolve financial issues.

For people, when money is tight, on the one hand, they can withdraw assets, like a bank, and on the other hand, they can raise funds in other ways to solve personal financial problems.

Liquidity issues have been reported in the currency market!

Many ancient metals like to hold silver for a long time, and many people are fine with the stable need. When most of your money is spent in a stable investment or profit for a long time, the cash on hand can be stressful.

In the meantime, if you want to make a quick buck, you have to sell the coins you have on hand. Selling BTC always gives the impression that something is missing and the money is getting smaller and smaller due to the lack of multiple investments.

As a result, most people prefer to work outside of court to earn money and invest money in court for longer. The key is to ensure adequate personal income.

DeFi contract loans solve this problem very well. Like real-world banks, the founder is the “intermediary bank” and AAVE and COMPOUND are the “intermediary companies”. When borrowing is required, only borrow USDT as collateral for BTC, ETH, and other assets for that contract.

It's like a small loan, simply making light from a variety of functions, can be the real engine of the next cattle store!

The old money lenders and piggy bank, modern banks and financial institutions all provided income.

Before the financial cycle, there were no financial instruments, most of the income came from the entry of new waves. DeFi Bond Loans Bring More Crypto Tools!

By increasing the value of the anchor currency from BTC to Ethereum, we can see that many long term investors have invested in DeFi in various mining assets and equipment through money lending arrangements.

Liquidity is the foundation of a diversified economy, this year's flooding quickly bubbled many assets, the new earnings results were worse than a few numbers in the United States.

The rapid growth of TVL that we are currently seeing is primarily the commodity of the cryptocurrency industry, these assets are put into their own loans, and the income from the liabilities into gross assets that cannot be capitalized. !

It's amazing, the crypto world doesn't need to be connected to reality, it doesn't need to be out of cycle, in this crypto ecosystem it is already able to close the loop it - even seems sufficient. Liquidity flows seamlessly through assets, loans, business and finance!

There are concerns that DeFi's success threatens the status of key assets like BTC. In return, we believe DeFi financial instruments will increase the value of key assets or make holders happier and hold key assets for the long term!

Loan provides liquidity, mining blocks liquidity The combination of equipment and needs will lead to a new level of excitement.

DeFi can make the encrypted world a better place and look to the future!

BTC and other Ethereum assets, soon to be released, along with the growth of TVL will be the hallmarks of this cattle market!