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What's the matter with blockchain,Blockchain application - what's going on in the lending field in DFI?

Time : 16/07/2021 Author : yqx8eo Click : + -
        The so-called defi is the general term of decentralized finance, which includes many fields, such as lending, payment, insurance, etc. today we will tell you about the most important field of defi &mdash& mdash; Mortgage lending, what's going on. As we all know, in the traditional loan market, if you want to borrow a loan from a financial institution, you must use the corresponding physical property as a pledge, and then the financial institution will evaluate and review the property, and finally issue a loan. In the world of defi, the steps of lending are the same, just to remove the role of financial institutions and implement it by smart contract programs written in source code.
        Before we talk about it, we need to master two basic concepts. One is Dai. To put it bluntly, Dai can also be understood as the US dollar in digital currency, which can be exchanged 1:1 with us dollars;. Another basic concept is MKR, which is the digital currency launched by makerdao. It has two functions: one is the voting function in community governance; Because the service platform is decentralized, every customer with MKR can participate in the construction planning of the service platform. If there is any change in the specification, they can vote. Another function is as interest rate token. If you loan from makerdao, a service platform, you must pay the corresponding MKR as loan interest.
        Knowing these two definitions, you can get to the topic. In the smart contract of makerdao, there are two pools, one is called etheric pool, and the other is called pledge bond warehouse, namely. If you want to borrow money on DFI, first of all, you should take the corresponding digital assets as collateral (such as eth, wbtc, usdc and other digital currencies issued on Ethereum). You need to put your Eth and other pledged properties into its first pool, the ether pool, and then the smart contract will evaluate your digital assets and return them to your corresponding PEth as the credentials after pledge. Secondly, you take this credential PEth and enter its second pool pledge bond warehouse to borrow loans.
        In this workflow, the pledge warehouse will be converted into matching debts. In addition, lock your previously pledged digital assets. After the smart contract is reviewed, the corresponding loans will be released immediately &mdash& mdash; Dai stabilizes the currency, and then you can exchange Dai into currency in the professional market and trade at will. If you run out of money and want to redeem your digital assets, you will enter step 3. You need to buy the corresponding total amount of MKR in the professional market as the loan interest, put it together with the Dai you borrowed, and then return it to the pool of the pledge bond warehouse, and the collateral locked in the pledge warehouse will be released. Then you can take out your previously pledged digital assets eth by sending transactions according to the smart contract.
        Therefore, the overall borrowing and lending workflow is realized. Of course, if you borrow Dai in all processes, but you really don't have money to repay it, you don't need to pay it back. The smart contract will take your Ethereum to the market by itself, so as to realize property settlement. In general, compared with traditional lending, DFI has its unique advantages, such as property valuation, loan verification, loan release and other situations, which are implemented by source code, which is more fair, safe and reliable, and also saves a lot of time. At this stage, DFI lending is also in a rapid development trend, from the order of millions of dollars in the early stage to the equivalent of billions of dollars now. We look forward to bringing you higher surprises in the future ~.
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