Lending And Borrowing In DEFI Explained - Aave, Compound

So have you ever been wondering how lending and borrowing works in DeFi? How are the supply and borrow rates determined? And what is the main difference between the most popular lending protocols such as Compound and Aave? We’ll answer all of these questions in this video.

Lending and borrowing is one of the most important elements of any financial system. Most people at some point in their life are exposed to borrowing, usually by taking a student loan, a car loan or a mortgage.

The whole concept is quite simple. Lenders a.k.a. depositors provide funds to borrowers in return for interest on their deposit. Borrowers or loan takers are willing to pay interest on the amount they borrowed in exchange for having a lump sum of money available immediately.

DeFi lending allows users to become lenders or borrowers in a completely decentralized and permissionless way while maintaining full custody over their coins.

[Finematics]

❓What do you think about lending and borrowing in DeFi? What is your favourite platform?
👍Hit the like button if you enjoyed this video

[awrjkf]

OMG, this channel is amazing - a treasure trove of knowledge. I am Crypto investor, but for me the knowledge behind the tech is more important than investing itself.

[mguarino]

thank you for doing this explanation. I'll need to watch more of your videos and maybe watch this 3x more times to comprehend all the concepts.

[finokemina]

Men! you are simply golden. I hope it is gonna be shown in schools one day, so much well explained details! Thanks a million!

[DYLTHEVYL]

This is hands down one of his best videos, and I’m only 7:41 in.

[meehai_]

Two questions:

I have some questions:
1. why would anyone borrow a token ever? Especially since you need to have at least the amount you borrow. How do you avoid capital gains by doing this, as told in the video.
2. Why does in compound the exchange rate always goes higher? Why wouldn't it go lower than the initial 0.02 ?

[LibaciFibs]

I appreciate the visuals just as much as your explanation. Really cool video.

[rgwei]

Great video! Mind making a video explaining risk from a lender's perspective?

[marcelchuo]

Turned on notifications for your vids, really, really high quality content! Keep it up!

[asdasd-yrwi]

finally someone answered the DEFI question to me. nice channel!

[omarciano]

I was searching for this today! Thanks

[letsbye]

5 Minutes, into the video, knew this is going to be an awesome one, grabbed a notepad. to take notes of all the new nomenclature .!! way to go...liked and subscribed.

[HHHGeorge]

Thank you for the video. Your video has given me clarity on how DEFI works and how lenders assets are safeguarded.

[turgayo.]

THATS GREAT, TELL US MOAR . IT IS NEW AAVE AND COMP .

[GrindGs]

Okay, as a German I have to listen to it more than one time. But really good stuff which you create!! Thanks

[AlainJeanBaptiste]

Truly nails it ! Thank you for making this easier to understand. So much possibilities that are available for people to create success in their lives now.

[Graceful_G]

This is a helpful explanation of how lending and borrowing work in the decentralized finance (DeFi) space.

It's an important aspect of the DeFi ecosystem and can offer users more control and transparency in their financial activities.

I need more videos like this!

[semwalma]

Just what I was looking for. Amazing work!

[Jolademi]

Nice content, DeFi is the next gem and Grizzly project is right call for Investors to earn steady profit.

[JayS]

Damn I did not expect this video to be this good. With the added bonus of the video host sounding like a mix between Count Dracula and a DC Comic character, this was a great explanatory video of defi for beginners. Thanks