For centuries, borrowing and lending have been a core component of financial transactions. Borrowing and lending have aided parties involved in the transaction to make profits. Aside from borrowing and lending, swapping assets is another integral feature of finance. Even archaic financial models like the trade and barter system involved the swapping of assets.
Today, the financial world is on another level. A lot of things have changed over the years. Despite these transformations, borrowing and lending, as well as swapping, still form a core part of finance. In decentralized finance, different protocols exist to aid borrowing and lending. Also, many protocols support asset swapping.
One major protocol used by DeFi fans for borrowing and lending is the Aave protocol. The Aave protocol was built on the Ethereum blockchain. For asset swapping, Uniswap stands out. Just like Aave, Uniswap was also built on the Ethereum blockchain. Interestingly, another excellent DeFi platform exists that supports borrowing and lending, and even swapping – VertoChain.
VertoChain’s (VERT) Borrowing and Lending Framework In Comparison With Aave (AAVE)
The Aave protocol allows DeFi fans to borrow and lend up to twenty different crypto assets. The protocol also allows flexibility in borrowing. Borrowers can go for a fixed interest rate or a variable interest rate. For borrowers who bet on an appreciation in the value of their collateral, a fixed interest rate is a great option. However, borrowers who bet on a price dump or depreciation in value will fancy a variable interest rate.
Just like Aave, VertoChain supports borrowing and lending. Notably, though, VertoChain was not built primarily for this purpose. However, the protocol supports the dispensation of loans to crypto projects with solid potential. The protocol vets each loan application before loans are disbursed. Only projects that pass the vetting test from VertoChain’s DAO are approved for loans.
VertoChain’s system of loan allocation will help in the development of advanced blockchain solutions in the future. It will also encourage builders and developers in the decentralized world to build innovative and long-lasting projects.
Additionally, the vetting of projects by the protocol’s DAO ensures that funds are not wasted. Only solid projects will be supported.
VertoChain (VERT) And Uniswap (UNI) Comparison
Uniswap has existed since 2018. The project launched in November and became the most famous swap protocol in the DeFi ecosystem. In 2020, the protocol introduced the UNI token to advance the project. The UNI token can be swapped on the protocol, although the protocol charges fees in ETH.
Just like many other swap platforms, Uniswap (UNI) has struggled to balance functionality with user experience. The platform’s interface is quite complex for new users to navigate through. Interestingly, the platform has constantly positioned for change. The team has worked hard to improve Uniswap’s user interface, but more could still be done.
VertoChain, will serve as a swapping platform, useful for DeFi users. Unlike Uniswap, VertoChain will have an easy-to-use interface. The platform will be built with modern designs, and even a newbie in the DeFi space will find VertoChain easy to use.
Additionally, since VertoChain runs on the BSC network, users will not need to pay extravagant gas fees. Interestingly, the fall in the value of Ether and the platform’s upgrade to V3 has helped reduce Uniswap’s transaction fees significantly. This decrease though is still not enough. While Uniswap now charges 0.3% for transaction fees, VertoChain’s fees are still a fraction of the costs of Uniswap.
Conclusion
DeFi protocols like Aave, Uniswap, and VertoChain have improved the way borrowing, lending, and swapping are done. Aave and Uniswap are already widely known in the DeFi space for their financial services. VertoChain seems to be the next, as the protocol has an attractive framework for swapping, borrowing, and lending.
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