That’s the proposition presented by “DeFi”, or decentralised finance, peer-to-peer cryptocurrency platforms that allow lenders and borrowers to transact without the traditional gatekeepers of loans: banks. “There is an actual value on what is being built on these protocols, ” said Maya Zehavi, a blockchain consultant and board member of an Israeli blockchain industry group. That’s the promise.”Most DeFi platforms are based on the ethereum blockchain, the backbone for ether, the second-biggest cryptocurrency after bitcoin. Mouran borrows the US dollar Coin cryptocurrency on lending platform Aave, and then uses the loan to trade Lend coins. The DeFi industry is still far from that point, though.

Source: The Star August 26, 2020 23:48 UTC