In today’s bear market, many investors prefer to keep safer and more reliable stablecoins in order to minimize risk and make decent profits by betting on a single currency. .. It is better to stock up on the bear market, so safety and stability should be our top priority. Therefore, here we analyze the possible investment options of AAVE, Compound, and TrueFi.
AAVE
AAVE, a lending protocol established in Ethereum, is a decentralized system that allows users to borrow, lend, and earn interest on crypto assets without intervention. This flagship project of the Ethereum ecosystem is at the top of all DeFi projects for Total Value Locked (TVL), Number of Users and Token Value.
Currently, AAVE’s TUSD has reached $ 78.17 million, utilization is 30.94% and supply APY is 0.49%.
TUSD can be used as collateral for AAVE. This reflects AAVE’s affirmation of the safety and stability of TUSD. The Ethereum version of AAVE has 33 lending markets, including 10 Stablecoin projects. However, only four stablecoin projects, including TUSD and USDC, can be used as collateral assets, accounting for only 40%.
It should be emphasized that TUSD has a MAX LTV of 80% on AAVE and is ranked high among the projects that can be used as collateral assets. This means that users who offer TUSD loans on AAVE can not only earn interest on their deposits, but also use TUSD as collateral to borrow other assets. This further demonstrates the security and stability of TUSD. (MAX LTV refers to the maximum borrowing capacity of a particular collateral. For example, TUSD’s MAX LTV is 80%, which means that for every 1 TUSD deposited as collateral, the user has up to 0.8 TUSD worth of other encryption. You can borrow assets.)
Developed by TrustToken, TrueFi is a good example of an unsecured lending project. The TureFi platform was launched in November 2020. The founder of FTXSamBankman-Fried (SBF) was the first TUSD borrower of the platform.
Currently, most DeFi lending platforms are over-collateralized to minimize the risk of bad debt. In other words, if a user wants to borrow an asset worth 1 ETH, the asset over that amount must be secured. Apparently, over-collateral means low funding. In addition, users must purchase collateral before borrowing money, which increases the cost of borrowing. In contrast, unsecured loans are more attractive but require more trust from users.
To ensure repayment and reduce bad debt, TrueFi borrowers must first complete the KYC verification. You can only apply for a loan after being whitelisted by the TrustToken team. TrueFi is a bit different from other DeFi projects in this respect, as KYC verification and credit checks are primarily required by CeFi. Borrowing funds on the platform is currently only available to institutional investors. After the borrower makes the application, the lender votes to decide whether to approve them and the lender must take the risk of default.
Compounds are a market-leading, well-established lending protocol whose security withstands the challenges of time. Currently, the total supply of TUSD at Compound is $ 82.14 million. The TUSD DeFi staking event is currently being held in OKX, where users can earn 8% APY by staking TUSD and the TUSD team is subsidizing 6.5%. This is a great opportunity not to be missed.
Don’t worry if you don’t have enough TUSD to attend the event. Users can bet assets such as USDC, DAI, ETH on Compound and APY can borrow TUSD of only 0.03%. This will allow you to participate in this DeFi staking event and earn up to 8% APY. While TUSD offers the best security as a stablecoin lined with fiat money, OKX is a well-established crypto exchange, so the security of this event is highly guaranteed.
Conclusion
The above is how TUSD works on three major platforms. In conclusion, no one knows if the market has bottomed out in the crypto winter. Therefore, using TUSD in the major lending protocols to obtain a stable yield is a good choice.
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