In this article, I’ll show you 4 DeFi Lending platforms that pay well.

DeFi lending is one of the ways to earn passive crypto income.

I did my research and I found the highest-paying platforms for you.

But Hey! I’m no Financial Adviser. Endeavor to DYOR before investing in these platforms.

Alright, let’s get to it.

First, let’s understand what DeFi lending is…

What is DeFi lending?

DeFi lending is simply permissionless peer-to-peer borrowing, where the operational terms are determined by smart contracts.

The smart contracts are written to adapt interest rates based on the supply and demand of the coins available on the DeFi platform.

All there is to do is to connect a supported wallet and deposit funds.

As the platform accrues interests (which happens regularly), your earnings are sent to your wallet.

Here, you are in total control of your keys and there is no restriction on the interest that you earn.

Now, let’s see the top platforms that you can earn from…

Top 4 DeFi Lending Platforms 

1. AAVE

First on my list of top DeFi lending platforms is the popular AAVE.

It is an Ethereum-based non-custodian protocol that facilitates the creation of money markets.

Stani Kulechov founded the platform in May 2017.

Presently, AAVE can boast of a TVL worth $13.59 billion.

It provides a dual DeFi token model: aToken and LEND.

aToken is an ERC-20 token that compounds the interest of lenders while LEND is the governance token.

Aave offers both collateralized and uncollateralized loans.

Also, you can choose between stable and variable borrow rates for your preferred asset.

Then it has a Flash Loan feature that enables users to borrow multiple cryptos in a single loan.

Some tokens that you can deposit on AAVE and their APY are

Token – APY

• DAI – 4.24%
• BAL – 12.08%
• CRV – 3.65%
• RAI – 1.66%
• SNX – 4.27%

2. Compound

The Compound is another DeFi protocol built on Ethereum Blockchain that you can earn from.

It was founded by Robert Leshner and Geoff Hayes in August 2017.

As of the time of this video, it has a TVL worth $ 9.1 billion.

Like AAVE, it offers a dual DeFi token model: cToken and COMP.

cToken allows for the tokenization of locked assets while COMP is the governance token.

Users are given a corresponding amount of cTokens for the coins they deposit.

These cTokens are usually larger in number than what they deposited.

Furthermore, the interest and borrowing rates depend on the asset.

And there are no fixed interest rates. 

The system updates the interest rates based on the supply and demand of assets.

Some tokens that you can deposit on Compound and their APY are

Token – APY

• DAI – 2.63%
• USDT – 3.05%
• ZRX – 0.87%
• WBTC – 0.41%
• BAT – 0.89%

3. Definer

This is another DeFi lending platform that you can earn from.

Definer was founded in February 2018 by Jason Wu.

Presently (5/08/21), it records a TVL worth $790,400.

It has a native token – FIN, which is an ERC-20 token.

The FIN token is used for profit distribution, voting rights, and premium confirmation.

On Definer, funds that have not been used inside the system are borrowed and sent where they can fetch profits.

For example, a special smart contract redirects inactive deposits to markets like Compound to raise the utilization rate to at least 85%.

Cool, right?

Some tokens that you can deposit on Definer and their APY are

Token – APY

• DAI – 3.16%
• USDT – 3.31%
• ZRX – 4.27%
• WBTC – 1.21%
• BAT – 3.47%
• ETH – 1.41%

4. C.R.E.A.M Finance

The last DeFi lending platform on my list is C.R.E.A.M Finance.

Don’t worry, this is not another shady, food-themed DeFi project.

C.R.E.A.M stands for Crypto Rules Everything Around Me. *smiles

The protocol was founded by Jeffrey Huang in August 2020.

As of the time of this video, it has a TVL worth $ 580 Million.

This platform provides Lending/Borrowing, Swap, and Liquidity mining services.

It has a governance token – CREAM, which is an ERC-20 that is given to network participants.

Here, interest rates depend on the supply and demand for an asset.

Also, lenders can withdraw their funds at any time.

Some tokens that you can deposit on C.R.E.A.M Finance and their APY are

Token – APY

• ETH – 1.22%
• USDT – 8.15%
• COMP – 2.27%
• BAL – 5.57%
• YFI – 0.47%
• CRV – 6.65%

Conclusion

This is where I’ll draw the drapes in today’s article. I hope it was worth your time.

So tell me, which DeFi lending platform from my list will you go for?

Would you like me to write a step-by-step guide on how to use any of the platforms?

Let your fingers do the talking in the comments section right now. 

Before you go, don’t fail to share this article with your friends, thank you.