Borrowing crypto with compound

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Typically in order to take out a loan,
you would have to fill out an application with a centralized financial service provider. it’s a long process with a host of requirements and opportunities for bias

To avoid this, you could borrow crypto assets directly Compound instead using assets you has supplied to the protocol as collateral.
In traditional finance, this process of borrowing against supplied assets is over-collateralized lending.
Compound is different from a typical money market though, because it’s decentralized and operates completely autonomously.
The only central authority is the code itself.
With compound, you, or any financial application or service can instantly access borrowed crypto assets, and then make use of them however they see fit.

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For example, you goal is might be to put an advanced trading strategy into place, like leveraging your borrowed crypto to invest in other assets.
to borrow crypto, the first thing you does is supply an assets to Compound.
Supplied assets immediately start generating interest, and can also be ussed as collateral to borow any other supported asset of your choice.
The more you supplies, the higher your borrowing limit increases.

*Source: Compound.finance, Coinbase learning

Posted Using LeoFinance



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