Don't panic, it's FAQ now
What is crypto lending?
Crypto lending is lending through blockchain technology using digital currencies such as ETH instead of fiat, without the involvement of a third-party financial institution (that involves extra time and cost). Anyone can lend and borrow with access to DeFi apps. Traditional crypto lending is overcollateralized, meaning that borrowers need to lock more collateral in value than the amount borrowed in order to secure a loan. This is a barrier for many borrowing use cases. The Atlendis protocol is a more capital-efficient crypto lending protocol because it removes the need to lock any collateral upfront to obtain a crypto loan and capital does not sit idle or unused.
How does crypto lending work?
Crypto lending leverages blockchain technology and the use of smart contracts. Smart contracts eliminate the need for a central third-party intermediary, so loans are settled instantly with less permission and trust needed.
On the Atlendis protocol, lenders can choose from a pool of whitelisted borrowers who do not have to overcollateralize their loans. Based on their risk assessment, lenders can specify their lending rate for each borrower of their choice. Atlendis is a capital-efficient DeFi lending protocol that enables crypto loans without collateral, where institutional borrowers can obtain competitive loan terms, and lenders get access to higher returns while having more granular control over their investment portfolios.
What are the advantages of crypto lending?
Crypto lending enables lenders to earn interest on their digital assets without giving up the custody of their funds to a third-party financial institution. Crypto lending on the Atlendis protocol gives access to higher returns while enabling lenders to keep control over their digital assets. Lenders have the flexibility to choose their borrowers and their desired lending rate.
What is the interest rate when lending crypto?
Interest rates for crypto loans vary depending on the DeFi apps and platforms used and the level of associated risk. There is no predetermined interest rate on the Atlendis protocol, instead, the platform allows for fair rate discovery using a bid order book. Unused capital is placed on a trusted third-party liquidity protocol while simultaneously earning additional returns from the Atlendis protocol, the interest rate on the Atlendis protocol is floored.
Is crypto lending safe?
Crypto lending comes with associated levels of risk depending on the DeFi apps and protocols used and the types of digital assets involved. It is recommended to seek professional advice from a financial advisor.
Why choose the Atlendis protocol for crypto lending?
Atlendis is a capital-efficient DeFi lending protocol that enables uncollateralized crypto loans. Lenders have control over their investment portfolios and can benefit from higher returns than on overcollateralized lending platforms. However, as a potential reward does not come without risk, lenders are able to build their investment portfolio by individually selecting the borrowers of their choice, as well as their preferred lending rate. Unused capital is placed on a trusted third-party liquidity protocol while simultaneously earning additional returns from the Atlendis protocol.