For many people, this is the first time we see that it is possible to borrow and borrow further Challenge. We have truly moved to a world where intermediaries and central authorities can be removed from financial transactions; now the power is in our hands.
The lending and lending process embedded in Challenge are unlicensed and these transactions are carried out on decentralized exchanges. These exchanges ensure that peer-to-peer transactions are performed without the intervention of an intermediary.
An important aspect of borrowing and lending is decentralized protocols through which transactions are verified and executed. This is where AAVE, Compound and Mountanaz (MNAZ ).
Let’s see how loans and lending have been made available in DeFi and how people can expand to different areas of the metaverse.
When you look at the construction of AAVE, you will realize that the peer-to-peer platform provides users with a stable interest rate, which is reflected in the price of a given asset in the cryptocurrency market. In addition, with an appropriate tracking system, AAVE uses an algorithm that checks the amount borrowed from the pools.
Another interesting feature from AAVE to ensure that users can easily borrow a loan from the platform, it is the decentralized protocol token. AAVE has two tokens that perform different tasks; the first is aTokenwhile the other is the AAVE token.
aToken can be used as collateral for the loan and it is also a means by which users earn interest. On the other hand, AAVE is an ERC-20 token that allows holders to participate in betting. It is a governance token on the platform and ensures that transactions are properly verified.
Flash loan is one of the features that has made AAVE popular with investors. Interest accrued on a transaction is recorded and stated as by aTokenwhich users can add to their wallet and raise at any time.
Compound is quite similar to AAVE in that both platforms are decentralized protocols which ensures that people borrow and lend without any intermediary controlling the transactions. One thing that stands out for Compound users is that Ethereum’s smart contract, which contributes to the pool as established, allows people to pay off debt in a digital currency that they may not own.
Compound, like AAVE, indicates that a small portion of each of its pools is marked as reserves due to volatility in the cryptocurrency market.
It is one of the latest decentralized platforms built on the Libra Smart Chain; Mountanaz seeks to change the landscape in terms of reducing the waiting time for a user’s partnership with a willing lender.
The reciprocity strategy adopted by the decentralized protocol is to create a pool of liquidity that ensures an equitable distribution of assets. This platform thrives on the amount of liquidity for all kinds of digital assets.
The introduction of flash loan, which worked tremendously for AAVE, is a feature adopted by Mountanaz. In addition, the native token, which is MNAZ, allows mountaineers to be a part of the mountain’s present and future. In the same order of ideas, MNAZ is the gateway through which people who want to pay their debts can do so on the network.
AAVE, Compound and Mountanaz use f-act verifiers known as Oracles, which help with the calculation by seeing that transactions come from multiple sources. The management of the three cryptocurrencies is based on the decentralized autonomous organization (DAO), which is managed by the key members who have contributed to each platform’s services.
These three powerhouses will revolutionize DeFi and other aspects of the meta-verse to enhance every user’s experience in all of these ways.
See below for more information about Mountanaz:
Website : http://mountanaz.io
Instagram: https: //www.instagram.com/mountanaztoken