DeFi

Can Web3 Take Lending Models to the Next Level?

Published

8 months ago

30 May, 2024

From the outside, the field of decentralized finance (DeFi) appears to have evolved enormously, with the crypto lending field particularly seeing significant traction. To be more precise, as of Q1 2024, the total value locked (TVL) in this space stood at approximately $101.36 billion. Of this figure, loan protocols accounted for $32.62 billion, or approximately 32.2% of the metric noted above.

These remarkable figures can be attributed to several factors. First, crypto lending protocols typically offer higher interest rates than traditional financial institutions, making them an attractive option for participants. For example, platforms like Nexo offer interest rates of up to 16% on certain assets, while traditional savings accounts generally offer much lower rates, often less than 1%.

This stark difference makes crypto lending platforms particularly attractive to those looking to maximize return on investment. Additionally, the flexibility and variety of terms offered by many cryptocurrency lenders – such as daily interest payments and no lock-in period on many products – enhance their attractiveness compared to rigid product structures. traditional financial institutions.

Time to change

Over the past few decades, the traditional credit market has been plagued by myriad predatory practices, with borrowers often finding themselves trapped in high-interest debt cycles for years. At this point, a recent report from the Center for Responsible Lending revealed Payday loans and auto titles alone – which can have annual percentage rates (APRs) of up to 400% – cost American households about $8 billion in fees per year.

Additionally, it is worth mentioning that predatory practices appear to disproportionately affect low-income and minority communities, exacerbating the wealth gap and perpetuating financial instability. Borrowers are often forced to take out additional loans to repay previous ones, leading to a vicious cycle of debt from which it can be difficult to escape.

Zivoé aims to disrupt this predatory landscape by leveraging the power of the DeFi ecosystem, providing customers with more affordable credit options. To be more specific, Zivoe’s operational framework involves issuing on-chain loans to consumer lending companies, allowing them to provide fiat loans to consumers at lower interest rates.

One of the biggest advantages of the platform is its seasoned leadership, comprised of individuals with extensive experience in the consumer lending industry. To this point, over the past decade, key team members, such as founder Jay Abbasi and CTO John Quarnstrom, have managed multi-billion dollar unsecured consumer loan portfolios, proving thus their expertise in effectively assessing and mitigating pervasive risks.

Zivoe’s approach to risk management is multi-faceted. Loans issued by lending partners are secured in a special purpose vehicle (SPV), over which the platform has rights in the event of non-performance. This structure helps reduce the credit risk assumed by the protocol. Additionally, Zivoe can allocate unlent funds to DeFi protocols, creating an additional revenue stream and ensuring capital efficiency.

Finally, Zivoe’s governance model is based on transparency and community involvement. The protocol is governed by a decentralized autonomous organization (DAO) of ZVE token holders, which orchestrates decisions through on-chain governance. This approach ensures that the direction of the protocol is guided by its community, aligning incentives and promoting responsible lending practices.

The future of lending

As the DeFi ecosystem continues to mature, lending protocols are expected to play a crucial role in shaping the future of digital finance. According to recent reportsThe DeFi market is expected to reach a valuation of $232.20 billion by the end of 2030, with a compound annual growth (CAGR) of 42.6% from 2022 to 2030.

However, for the sector to truly reach its full potential, several challenges must be addressed. Regulatory uncertainty, scalability issues, and the risk of smart contract vulnerabilities are some of the major hurdles to overcome. In this context, projects like Zivoe, which emphasize responsible lending practices, risk management and transparency, appear to be well-positioned to push the adoption of DeFi lending even further.

By leveraging the power of blockchain technology and combining it with many traditional trading systems, these protocols are poised to take the lending market to a new level, providing a more inclusive, transparent and efficient financial ecosystem. Interesting times ahead!

Fuente

DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

Discover the exciting opportunities of the Rollblock (RBLK) presale today!

Website: https://presale.rollblock.io/

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Fuente

DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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