FFor centuries, borrowing and lending have been a core component of financial transactions. Borrowing and lending help the parties involved in a transaction to make a profit. Besides borrowing and lending, swapping of assets is another integral feature of finance. Even archaic financial models such as trade and barter systems involved the swapping of assets.
Today, the financial world is on another level. A lot has changed over the years. Despite these changes, borrowing and lending, as well as swapping, still remain a core part of finance. In decentralized finance, various protocols exist to assist with borrowing and lending. Also, many protocols support asset swapping.
A major protocol used by DeFi fans for lending and lending is the Away Protocol. The Away protocol was built on the Ethereum blockchain. When it comes to asset swaps, Uniswap stands out. Like Aave, Uniswap was also built on the Ethereum blockchain. Interestingly, there exists another excellent DeFi platform that supports lending and lending and even swapping – Vertochain.
VertoChain’s (VERT) lending and lending framework compared with Aave (AAVE)
The Aave protocol allows DeFi fans to borrow and lend over twenty different crypto assets. The protocol also allows for 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 value dump or a depreciation in value will assume a variable interest rate.
Like Aave, VertoChain supports lending and lending. Notably, though, VertoChain was not built primarily for this purpose. However, the protocol supports lending to crypto projects with solid potential. The protocol scrutinizes each loan application before loan disbursement. Only projects that pass the test test from VertoChain’s DAO are approved for loans.
VertoChain’s debt allocation system will help in the development of advanced blockchain solutions in the future. It will also encourage builders and developers to build innovative and long-term projects in a decentralized world.
Additionally, vetting of projects by the DAO of the Protocol ensures that funds are not wasted. Only concrete projects will be supported.
VertoChain (VERT) and Uniswap (UNI) Comparison
Uniswap has been in existence since 2018. The project started in November and has become the most well-known swap protocol in the DeFi ecosystem. In 2020, the protocol introduced the UNI token to take the project forward. UNI tokens can be swapped on the protocol, although the protocol charges a fee in ETH.
Like many other swap platforms, Uniswap (UNI) has struggled to balance functionality with user experience. The interface of the platform is quite complicated for new users to navigate. Interestingly, the platform is constantly positioned for change. The team has worked hard to improve Uniswap’s user interface, but there is still a lot to be done.
VertoChain will act 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 novice in the DeFi space will find Vertochain easy to use.
Additionally, since Vertochain runs on the BSC network, users will not need to pay exorbitant gas charges. Interestingly, the drop in the price of Ether and the upgrade of the platform to V3 have helped bring down Uniswap’s transaction fees significantly. However, this shortcoming is still not enough. While Uniswap now charges 0.3% for transaction fees, VertoChain’s fees are still a fraction of Uniswap’s cost.
conclusion
DeFi protocols like Aave, Uniswap and VertoChain have improved the way you borrow, lend and swap. Aave and Uniswap are already widely known in the DeFi space for their financial services. Vertochain appears to be next, as the protocol has an attractive framework for swapping, borrowing and lending.
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