Binance Release Use Case For Ethereum Loan Project

Binance Release Use Case  For Ethereum Loan Project

Binance research, the market analysis wing of Binance, have released their analysis of the pros and cons of Ethereum’s borrowing and lending service.

The service is one of the main applications of the Ethereum blockchain. However, is it worth your time? Binance research delve into the use cases of the system to decide whether or not, users should be inclined to use it.

Ethereum’s, borrowing and lending service was described by the report as “by nature, platform-agnostic, DeFi applications are almost exclusively being developed and used on Ethereum.” As such, it is a service for everyone, so many people will do well to learn more about the product. However, people who regularly used Etereum’s services will benefit from this knowledge too. While, of course, people already using DeFI will benefit the most from learning about its pros and cons.

As per the report, there were three clear advantages of using DeFi protocols:

– Transparency and price efficiency

– Ease of access and speed when borrowing/lending capital

– Censorship resistance and immutability

However, it’s not all sunshine and rainbows when you are using the service either. As there were also two negatives highlighted by the research team:

Technology risks, as smart contract risk replaces counterparty risk, and low liquidity, as there are limits to borrowing and lending at current interest rate without affecting the interest rates.

With the overall summary of the product by the team being, “the crypto-powered lending space is still nascent but offers a compelling value proposition whereby individuals and institutions can move past outdated credit models to provide broader access to capital without the need for a trusted intermediary.”

This is the first of their new DeFi analysis series and you can learn about different DeFi series over the coming week and months. You can read the full report of this first one here.

Ready to join our tribe?

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

Recently Similar News

Latest Guides

Latest News

ChangeNOW,Decentralised,Fraud

ChangeNOW’s AML Action Lead To The Return Of $15M COMP

Earlier this week, ChangeNOW announced that it was able to identify and return 45,505 COMP back to Compound. The estimated value of this recovery is around the $15m mark. This remarkable achievement is further proof of the effectiveness of the exchange’s Anti-Money Laundering (AML) procedures. In an announcement made on ChangeNOW’s website, the company provided […]

6 October, 2021
CFD Trading Platform,eToro,Trading

eToro Lowers The FTD Minimum Across Several Countries

eToro, the social trading and multi-asset platform, has decided to lower the minimum first time deposit, or FTD. Until further updates, users who sign up today using the link below will be able to fund their trading account with as little as $50. This offer is only valid to users in selected countries. To participate […]

24 September, 2021
ChangeNOW,Cryptocurrency,Investment

ChangeNOW Launches The NOW Tracker App

The young, but fast-growing online cryptocurrency exchange, ChangeNOW, has just announced the release of its latest product. The NOW Tracker is a free asset management app that lets users keep track of their coins and tokens across different wallets. Available on Google Play and the App Store, NOW Tracker is flexible and functional. This solution […]

9 September, 2021
eToro,Investment,Trading

eToro Becomes An Official Partner Of RB Leipzig

The world’s leading social investment network, eToro, has recently announced a new and exciting partnership. According to an announcement on eToro’s Twitter page, the company has become the latest partner of the German football team, RB Leipzig. A two-year partnership agreement has been signed between the parties. Running until 2023, this agreement can be extended […]

24 August, 2021
Binance,Bitcoin,token

PSG’s Messi To Receive Part Of His Salary In Cryptocurrency

The Argentinian footballer, Lionel Messi, has made headline news several times in the past few weeks. Following his surprise departure from FC Barcelona, the player confirmed that he will be joining Paris Saint-Germain FC. The move was significantly newsworthy but got even more interest when it was announced that part of the footballer’s salary will […]

23 August, 2021
Blockchain,Casino,Ethereum

KingTiger Casino Announces Shut Down

KingTiger Casino has announced that it has ceased all operations until further notice. According to its website, the casino has had to “temporarily close” due to Ethereum network congestion. It is not yet clear if and when this online Bitcoin casino will reopen. Meanwhile, we invite you to check out other Bitcoin casinos from our […]

12 August, 2021
Binance,Casino,Cryptocurrency

CryptoCasino Announces Temporary Close

CryptoCasino has stopped operating until further notice. According to a landing page on their website, the casino is undergoing an update. There is no information about when the casino will reopen or the reason why an update required the website to shut down temporarily. Players who hold a crypto wallet account with CryptoCasino need not […]

11 August, 2021
Binance,Bitcoin,SEPA

Binance Suspends SEPA Inward Payments Until Further Notice

Binance Suspends SEPA Inward Payments Until Further Notice Binance has just announced that it has temporarily stopped all incoming SEPA payments. As a result, users will no longer be able to deposit euros using the primary European payments network. The world’s largest cryptocurrency exchange did not provide any specific information regarding the reason behind this […]

12 July, 2021