The total value of ETH locked into DeFi platforms is currently over $60 billion, a number that was in the low millions just two years ago. For decades, centralized systems have catered to those in need of financial services, but with the means to deploy applications on distributed networks came the ability to decentralize finance.
Decentralized finance is a use case that exceeds the limits of what blockchains can do, merging some of its most impressive and innovative features like smart contracts and staking into a system that generates value for the crypto-economy. Loans are a fundamental component of any economic system, and DeFi is no exception.
As a part of a solution, Bonded.Finance has tapped into the lending market with pooled loans, where investors collaborate to supply the capital to borrowers and split the interest. Its first DeFi project, the Bonded Accelerator Crypto Loan, allows users to deposit collateral tokens to withdraw their funds. Using its native BOND token, holders can generate Launchpad IDO assets at no cost, acquiring tokens that are typically hard to source.
With more exotic offerings than competing platforms like Aave, Compound, and SALT Lending, Bonded.Finance caters to investors that want more risk exposure and higher yield potential. They also have some ways for investors to increase the profits, including taking a percentage of the locked assets’ appreciation in exchange for a lower lending interest rate.