Defi Lending - How to invest and which one is right for you!

Defi Lending - How to invest and which one is right for you!

By Zirbo | Zirbo | 30 Oct 2020

If you're not a crypto trader, then you're probably holding coins and tokens as an investment. The markets can often be volatile and it might be hard to weather the storm when suddenly the value of your coin drops by 10%. If you believe in your investments and you're holding for the long term, you might want to consider loaning out your non-stakeable coins through one of these services:

1. Nexo


Nexo is my favorite lending service! You can deposit many different coins in your account with more on the way. Nexo pays 5% on regular crypto and 8% on stable coins. You can increase your earning percentage by buying their own Nexo tokens. Not only do Nexo tokens increase your interest rate, but Nexo also pays dividends. They share 30% of their profits with token holders! Buying Nexo tokens is not an easy process however, but if you complete their KYC verification, you can earn 2% extra in interest by having your compounded interest paid out in Nexo tokens instead of the crypto you deposited. You can switch back and forth between this whenever you want. Interest is paid out daily! Nexo accounts are secured by Bitgo and insured for up to $100 million!



2. Compound


Compound has quickly grown into one the most popular defi platorms! At the moment they have $2,413,419,723 in assets generating interest on the platform! Compound doesn't offer as wide a selection as some of the other platforms, neither are their interest rates as high as others. Compound makes up for this by also giving you their own governance token COMP for supplying assets. This means you earn interest on your coins and at the same time you earn COMP as well. If COMP ends up increasing in value over time, this could be a great investment! And on top of that, you can supply your COMP to Compound as well and earn interest on that too! Right now on Coinbase earn you can learn about Compound and earn $20 in COMP if you're interested in trying it out.



3. BlockFi


BlockFi at first seems very simple and doesn't really stand out from the other services here. They only support stablecoins, Bitcoin, Litecoin, and Ethereum. But what makes BlockFi special is that the interest you earn on your assets can be earned in the coin of your choice. Maybe you spend a lot on gas costs and you would like to earn interest paid out in Ethereum. Especially with demand for Ethereum going up, it could be worth to deposit some crypto on BlockFi. Interest is between 5 - 8.6% and BlockFi uses Gemini as its custodian. This means that 95% of assets are in cold storage and the other 5% in hot wallets. Hot wallets are insured by Aon and Gemini is a licensed and regulated company.


4. Aave


Aave, meaning ghost in Finnish, is very similar to Compound. They do offer some of the same coins as Compound, but also many coins that aren't listed anywhere else. Aave doesn't give you a special benefit like some of the other platforms here, but if you can't deposit your coins anywhere else, you might want to look at Aave. Aave is completely open source and their protocol has been audited and secured. Aave currenly has $1,248,850,260.75 in assets earning interest.


5. Celsius


Celsius is much like the other companies listed here. What sets them apart is that they support many different currencies, more than any of the other platforms listed here, and they also give you the option of being paid in their own Celsius token. You have the choice of earning interest in the coin that you deposited with them, but if you choose to receive it in CEL then your interest rate is significantly increased! The CEL token is currently ranked #37 on Coingecko based on marketcap, and has been steadily increasing in value! Interest rates are up to 21.49% annually, and Celsius is a licensed and regulated company.

If you're interested in using Celsius, you can use my code 1558831768 and you will get 30$ in Bitcoin after yor account has a balance of 200$ or higher!



Of course there are other services out there that also provide lending services, but I personally only have experience with these 5 companies.

Thanks for reading, I hope this has helped you decide what to do with your idle crypto!


I'm interested in anything crypto and I want to help people explore cryptocurrency!


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