The Bitrue and OKEx virtual currency exchanges say they will offer decentralized (DeFi) and centralized (CeFi) financing services.
OkEx CEO Jay Hao said the main cryptocurrency exchange, which handles billions of dollars in daily transaction volume (but has also been accused of market manipulation in several reports), will introduce a hybrid loan aggregator. The new service would incorporate Compound (COMP), a popular DeFi token that added heaps of millions of dollars to its balance in 2020.
Hao claims that OKEx will be “redefining” the cryptocurrency lending experience. The trading platform’s DeFi lending marketplace will bring together leading DeFi lending products and will make it easier for traders to verify and compare the different DeFi and CeFi lending rates.
OKEx said it would also launch a “one-stop” DeFi trading center that will point to the desire to move assets between other portfolios, which can slow down the trading process.
Cryptocurrency exchange Bitrue announces that it will present its hybrid (both DeFi and CeFi) in the first quarter of next year. Bittrue’s DeFi platform will also feature a token, called Bitrue Finance Token (BFT).
The inventory exchange noted that it will allow lenders to charge other cryptographic assets into a common cash fund, so that they can start earning interest on loans. BFT is expected to be indexed next month, the inventory bag said.
Bitrue also commented that updates to its existing lending platform will come with the ability to publicly query portfolios that contain a secured budget, which can allow for greater transparency.
DeFi platforms have experienced explosive expansion this year, driven by emerging protocols such as Aave, Compound, MakerDAO, Synthetix, Yearn.Finance, among others.
However, DeFi remains a very high-risk area of finance due to numerous scams and hacks which mainly result from poorly written smart contract code that may not have been properly audited by qualified third-parties.
Despite these problems, infrastructure developers are already creating answers to address key technical and security vulnerabilities in DeFi programs.Bluzelle, a “decentralized” knowledge network, recently launched new main points on its oracle that aims at the security of DeFi platforms.Chainlink’s decentralized oracles will also help DeFi programs that preserve blockchain-based privacy implemented on the Oasis network.
Alex Mashinsky of the Celsius Network, which offers a centralized lending solution, argued that the Ethereum-based lending platform is larger than its DeFi competitors.
Mashinsky had in early August 2020:
“The peculiarity of Celsius is that, unlike DeFi (decentralized finance) or many inventory exchanges, or even on Nasdaq, [our goal is to serve] impartial players in the monetary world. Celsius only constitutes depositors or other persons who lend us their coins. We [always aim to] constitute your most productive interests. Our task is to extract the largest source of interest income from the establishments to which we lend those currencies. So we created this total category, invented this category of income source interest. »