In a little under a year, DeFi has become a significant component of the cryptocurrency ecosystem. But which platforms pay the most interest?
Decentralized finance is often hailed as a prime use case for digital assets. Lending practices among DeFi platforms follow similar patterns: loans are overcollateralized, meaning the risk of default is negligible and lending is more responsible than that of the fractional reserve banking system used by legacy lending institutions.
As global interest rates hover around zero to negative yield, digital assets can offer an alternative way of generating passive income. Crypto.com’s eye-popping 18 percent annualized returns on CRO tokens locked up for three months by MCO token holders are undoubtedly appealing on the surface.
But these returns can come with risks. CRO tokens, of course, can depreciate in value, easily chipping away at the returns over the lock-up period. With many entrants in the market, a side-by-side comparison of lending rates can help crypto hodlers keep track of where they can earn the highest rates of interest. Read More...