DeFi Lending Explained - Aave and Compound

Borrowing and Lending are one of the major aspects of any financial system. At some point, you may have utilized these options yourself - either by taking a loan or by putting money in a savings account. In this video, we will look at how DeFi lending and borrowing works.

Relevant links:
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In this video, we will take a look at
👉 An overview of lending & borrowing in Traditional Finance (CeFi)
👉 Lending in DeFi
👉 Borrowing in DeFi
👉 Specialized tokens used by DeFi lending protocols
👉 Advantages of DeFi lending
👉 Risk of DeFi lending

Popular DeFi lending services
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Only those mentioned in the video.
⭐ Aave
⭐ Compound
⭐ Maker

Advantages of DeFi lending
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✅ Trustless
✅ Accessible
✅ High exposure
✅ Interoperable
✅ Speed
✅ Efficiency
✅ Cost savings

Risks of DeFi lending
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❌ Smart contract bugs
❌ Hacks
❌ Liquidation risks
❌ Interest rate uncertainty
❌ No undercollateralized loans
❌ Rugpulls
❌ Scalability issues

Timestamps
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00:00 Introduction
00:52 Traditional finance (context)
01:54 Specialized tokens in DeFi
02:37 Lending in DeFi
04:20 Borrowing in DeFi
07:34 Liquidations
09:05 Advantages of DeFi lending
10:03 Risks & Disadvantages
12:00 Finishing thoughts

[FutureCoin]

Your storytelling makes learning about crypto so enjoyable.

[cryptovision]

Your analysis of market trends is always spot on.

[joeporsche]

I had try to understand DiFi for long time with a lot of video on Youtube but I could not get it until I found your video.

[Diegtz]

Thanks for the video. A video explaning key differences between Aave and Compound more in depth would be great