Lending and borrowing
Recent Questions
How do liquidity lenders provide DeFi loans?
Hi guys, I've heard of many people who make money from lending people money and having them pay it back with interest. It never occurred to me that I could do this DeFi as well, until now. How do lending pools work, though? Is it equally distributed among borrowers, or do your assets get 'assigned' a borrower? If the funds are distributed, how do the smart contracts work to return your investment?Asked 9 months ago
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Can you make revenue in yield farming as a liquidity provider?
I've been looking at investing my crypto coins a DEX and I was looking at liquidity pools and what provides liquidity. It seems like the more people who stake their assets in the pool, the more liquidity there will be. Although, how would one profit from such an endeavour? Asked 10 months ago
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How do liquidity pool fees work?
Hi, I've joined DEX and facilitated my first peer-to-contract trade. But I just realized that I missed a crucial part of my calculation, and those are the fees! I feel like such a fart. What protocol fees can I expect from a liquidity pool? Do the fees get split amongst the liquidity providers (which makes the most sense)?Asked 10 months ago
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How does impermanent loss work with a stablecoin?
I have been a liquidity provider on a DeFi lending platform for the past month, and this is the first time I have a stablecoin within my trading pair. Would this increase my risk of impermanent loss, or will my stablecoin balance out the volatile crypto coin (Eth)? Asked 10 months ago
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Do L2 protocols pose less risk for generating higher returns for yield farmers?
So the layer 2 protocols on DeFi networks sound great. However, I'm worried about the risks this protocol brings to crypto trading platforms. I currently stake my Ethereum in various liquidity pools using yield farming, and many, if not all, of the DeFi networks, are upgrading to layer 2. Do the higher interest rates come with the same amount of risk, less, or more? Asked 10 months ago
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Can I get liquidated if I'm on a yield farm with a layer 2 protocol?
I've become accustomed to investing in crypto with bitcoin blockchains using layer 1 network liquidity pools. I'm someone who doesn't take too readily to changes, and although this layer 2 is said to have a faster transaction time, I'm worried that the risk of forced liquidation and losing money may be greater. Asked 10 months ago
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Does Layer 2 scaling reduce transaction fees for yield farming traders?
I've been looking into DeFi platforms and the difference between layer 1 and layer 2 blockchains. I'm wondering if Ethereum's layer two networks not only provide higher interest rates but also less transaction fees thanks to rollup blocks. Asked 10 months ago
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Which yield farming tool can I use to identify platforms with the best return?
Hello, I'm new to crypto trading and DeFi. I've got capital that I want to invest and I'm ready to try yield farming. Is there a tool I can use to help me identify the best interest rates for staking my crypto assets? Thanks in advance.Asked 10 months ago
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