What is Yield (YLD)?

Why P2P?

If you’ve played around with the Yield beta app and are an active participant of the defi lending space, you’ve probably noticed this one is not quite like the others — for one, it lacks the usual “supply”/”deposit” lingo and mechanics. That’s because most defi lending platforms today use a money-market model — you deposit/supply funds in the platform which gets added to a pool with everyone’s funds and from this, borrowers can “borrow”, collateralizing some of their deposit. This interplay of “supply” and “borrowing” is how their respective rates are determined. The benefit of this model, for lenders, is you can simply send in funds and have it passively earn interest while, for borrowers, there’s usually funds available to borrow.

Compound
Aave
Aave

What’s the Downside?

As you might’ve noticed, there’s a “downside” of sorts — unlike the money-markets where, for lenders, it’s a bit more hands-free after the initial deposit, Yield requires an approach that’s more active. And for borrowers, there won’t always be a pool of funds to simply take from. But, and there is a but, as someone so eloquently put it:

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Kanpeki

Kanpeki

Kanpeki is a fixed-rate, incentivized borrowing, and lending dapp on the Fantom network