Why DeFi lending is better than traditional lendimg

in LeoFinance3 years ago

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Well with the emergence of the underlying blockchain technology,the DeFi crypto lending can be considered to offer some clear key advantages over the traditional type of lending.

1....Transparency – unlike the centralized authority,the smart contracts is able to handle the lent and the borrowed assets and be able to save it in the blockchain for every individual to verify it. Therefore it is able to offer the complete transparency in any kind of fund movement...

2....The Easier Access to Asset – since there is really no middleman, the DeFi lending platforms creates the possibility of a peer to peer lending and also borrowing i.e. a direct asset transfer,..
Thereby offering a much easier access for the users...

3...DeFi lending offers a Greater Speed, the Utility, and also the Flexibility – so To borrow , you need to actually create an account on the DeFi lending platform of your choice , you need to have a crypto wallet, and of course it takes just a few seconds to be able to open the smart contracts. And yeah All these can really be verified via your mobile and in just a couple of minutes.

4...Price Efficiency – Tbe market demand tends to define the asset prices. So, the true ability of the DeFi to be able to attract more and more users quickly simply because of the ease of access, the arbitrage opportunity, and also the transparency in financial disclosure which is able to promote the price efficiency.

5..There is a form of censorship Resistance and also Immutability – The decentralization is able to guarantee that there is no preferential treatment and also it gives the equal right to information and also opportunity are maintained, with transactions saved in blockchain promising immutability....

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