Human needs never end, and now needs are adjusted along with wants and desires. And, for full-filling this long list of need, want, desire, they need money. And, of course, we all know that we live in a complicated world. So, how come getting a loan can be easy? The centralized authority has made it more difficult. Then, a decentralized system could help. Getting a loan from a decentralized network sounds good. And, this is possible with Cryptocurrency Exchange Script’s DeFi protocol like Xend Finance. How is it different from other protocols of DeFi? How can it benefit the common man? This blog can help you with all your answers. Let’s get started.
What Is XendFinance?
Xend Finance is a Nigeria-based decentralized finance (DeFi) platform for credit unions and cooperatives, which has secured new partnerships and fundings. The platform is backed up by Binance, Google launchpad, and others. It aims at improving and optimizing the credit unions at a global level. It is a decentralized saving, lending, borrowing, and investment operations of credit unions and offering multi-level interest returns to members of these unions.
What Is $XEND?
$XEND is the native token of Xend Finance. It is used as a reward for users who participate in various activities like saving, investing, and performing different network operations. The network also pours out interests to those who stake their tokens.
Different Ways To Save On A Platform Like XendFinance
- Save with credit union: Get started by creating a Credit Union and inviting members to join the union.
- Save as an individual: Get started with setting a goal, and the platform will help in savings.
Problems With Traditional Credit Union
- Traditional credit unions are bounded by location, i.e., all their members should be available in the exact location, to be a credit union member.
- The annual percentage returns are meager.
- As the community does not have access to more great liquidity pools, they can not offer massive amounts of loans, which in turn results in smaller loans with high rates of interest.
- Third-party involvement in the total lending and borrowing process.
Benefits Of Our DeFi Protocol Like XendFinance
- Our DeFi protocol like XendFinance, has tumbled down the barrier of location. It offers loans that can be accessed from any nook and corner of the world.
- It offers high percentage yields of up to 20%, giving access to global decentralized finance services like DeFi savings, DeFi lending & borrowing, and also access to decentralized insurance world to safeguard the deposited assets.
- Credit unions and individuals now have the liberty to store their money in foreign and stable digital currencies.
- Credit unions and individuals can also borrow in stable foreign currencies.
- Credit unions and individuals can have direct and instant access to their funds without a third party’s intervention.
- Using a decentralized governance process puts the community in charge of operations, thereby reducing risks and improving the project’s viability.
What Is The Use Of $XEND on a platform like XendFinance?
A DeFi protocol like XendFinance permits Credit Union operations and Individual saving operations on the smart contract. It charges only a small fee to create a union on the smart contract and that one fee for the whole cycle. This fee is paid in $XEND, i.e., Xend tokens.
A tiny percentage of the fee is burnt, which causes the value of the $XEND to increase, thus, paying the first level of interest to $XEND holders. The protocol like XendFinance smart contract periodically invests user saving deposits on the DeFi lending protocols like Compound, Aave, and Yearn.Finance. This produces a second level of interest for the users.
XendFinance Like Protocol As A DeFi Application
- Savings are taken care of by a smart contract with an algorithm utilized to reward users with Xend Tokens.
- Xend Tokens have a fixed supply, and the reward for saving is decreased as more people save on the saving platform. Xend Tokens are also burnt periodically from small fees paid by group savers. This enables users who save on Xend to earn higher interest. The reward distribution, interest rate determination, and Token burn are all handled by robust code in a smart contract.
- The custody of users’ savings is in a trustless smart contract, ensuring XendToken ($XEND) holders execute security Governance.
Why Binance Smart Chain Is Used To Build Defi Protocol Like Xend Finance?
- Interoperability: Cross-chain communication with all the blockchains.
- Fast Throughput: Heterogeneous sharding
- High Security: POS rely upon the chain
- Governance: On-chain governance
Working Of A DeFi Protocol Like Xend Finance
- Save Funds
Save funds as individuals and as credit unions. If you are an individual, you can simply set a saving target and move towards it or save with a credit union. Save automatically at periodic intervals and also get reminders when it is time to save.
- Stake Funds On Diverse DeFi Network
Your savings are converted to stable currencies and staked on staking and lending platforms so that you can earn compound interest on your savings. Platforms like compound, Aave, Maker, etc., are used for staking.
- Earn Interest
You can earn multi-level interest on your savings. The interest is compounded and is staked using instruments that give the best returns on savings.
Why choose cryptocurrency Exchange Script?
With the help of Cryptocurrency Exchange Script, you can develop a DeFi platform like XendFinance and enjoy good returns. Your savings are automatically staked on other DeFi platforms like compound, Yeran.Finance, and others, giving you the best returns. No manual work from your side is required. The platform will automatically handle it.
So take a dip into this world of saving and staking with us. We can help individuals, groups, cooperatives, and credit unions in different countries with unstable currencies to get access to a global trustless, and stable platform that offers saving, lending, borrowing, and investment.