Competition among crypto lending platforms is heating up. With major exchanges such as Binance throwing their considerable weight behind the movement, incumbent platforms have been sharpening the pencil in a bid to offer their lenders and borrowers a better APR. This week, for instance, Nexo, cut its borrowing rates to as low as 5.9%. Given that many crypto lenders are prone to charge up to 4% in origination fees and 5-13% in liquidation fees, Nexo is confident that its improved offer will entice crypto borrowers shopping around for the best deal.
2019 has been the year in which crypto lending has really taken off. Centralized and decentralized finance have been major growth areas, aided by crypto exchange integration and a backdrop of negative interest rates in the banking sector. Why be penalized for saving fiat when you can be rewarded for saving crypto?
Crypto Lending Options Are Stacking Up
That shopping process has gotten a lot easier thanks to the emergence of crypto lending comparison portals. These platforms provide a side-by-side comparison of what the leading centralized and decentralized lending solutions have to offer. Last week, Coinmarketcap launched a product that heralds its entry into the growing defi market. The tool, which the listing site has dubbed Coinmarketcap Interest, features finance data such as the best annualized interest rates for borrowing and lending cryptocurrencies across a variety of platforms.
Coinmarketcap doesn’t hold first mover advantage in this sphere, however, as there are already a number of high-level tools for analyzing the lending marketplace.
Loanscan is perhaps the gold standard in the sector, and after a redesign in May the site is better than ever. Originally built as a stealth tool for the crypto lending app Linen, Loanscan now serves as a standalone interest comparison product. The site is packed with features, information and graphical visualizations, making it fun just to play around with, depending on your love for data.
The site allows you to view address, protocol, or asset level analytics across a range of timeframes, such as 24-hours, week or month. For those who take a keen interest not only in where the market is today, but where it has been, Loanscan has a historical data tab too.
The range of possibilities with Loanscan is significant, so whether you want to know what the current value of all outstanding loans in the market is ($142M) or what the one-month repayments are ($67M) you shouldn’t have trouble finding the answer. Most importantly, Loanscan also provides comparison tables of the best interest rates for loaning and lending cryptocurrencies featuring DAI, ETH and BTC on platforms such as dYdX, Dharma, Fulcrum and Makerdao.
Due to its depth of information and rich presentation style, Loanscan is probably still the best all-round destination for experienced crypto users, however, there are simpler information sources out there.
While Coinmarketcap Interest doesn’t offer the same level of graphical wizardry as Loanscan, instead opting for a plain yet clean UI, it does pack a punch in terms of the information offered and ease of use. For those already well acquainted with the CMC layout and style, there is little adjustment required to get up to speed with Coinmarketcap Interest.
For the 30 or more stablecoins and cryptocurrencies which feature on CMC Interest, each has two tabs: “Earn Interest” and “Borrow Crypto.” All you need to do is select the currency you’d like to borrow or lend on the left, and then select a preferred platform depending on annualized interest rate, whether the platform is CEX or DEX, and the duration of the loan.
All in all it’s a pretty slick operation and while you don’t get the same level of control or information as you do on Loanscan, for those who just want to make money or borrow it without any of the deep-level analysis, CMC Interest works well.
If you’re more interested in broader ecosystem statistics than individual loans, Defi Pulse is another great analytical tool for decentralized finance and statistics geeks. For instance, if you want to know the total amount of money locked up in smart contracts on the Ethereum blockchain, Defi Pulse has got you covered. Want to know the current public network capacity of the Lightning Network? Defi Pulse has that too. You can also find out how much is locked up in DEXs, derivatives, assets and more, making it a highly useful tool for anyone doing deep research into the overall market.
Crypto networks are built upon open access and transparency. Thanks to monitoring sites and comparison tools that tap into solutions built upon these blockchains, cryptocurrency users can determine the best way to maximize their holdings. If you’re interested in interest, it pays to do your research.
Disclaimer: This article is for informational purposes only. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.