The financial system made possible by blockchain technology is known as decentralized finance or DeFi. Several DeFi protocols such as SushiSwap (CRYPTO: SUSHI) and Aave (CRYPTO: AAVE) allow users to bet cryptocurrencies and earn passive sources of income.

Here we will look at two DeFi protocols that are gaining significant traction in this area.

Sushi Swap 

Sushi Swap, a cryptocurrency that is also a decentralized exchange, was launched in August 2020. With a market capitalization of $ 808 million and a fixed total of $ 2.23 billion on the Sushi Swap platform. The price of SUSHI tokens has risen 440% in the last 16 months, but is still 86% below record highs.

Earn with Sushi Swap 

SushiSwap is an automated market maker that allows users to trade cryptocurrencies. These transactions are processed using smart contracts. SushiSwap has a liquidity pool where users can rent out digital assets. This is a process called cryptocurrency staking.

Unlike centralized exchanges like Coinbase, Sushi Swap does not require users to create an account. You need to connect your wallet to the SushiSwap application and use it to trade, exchange, lend, or borrow cryptocurrencies. Therefore, DEX does not allow you to purchase digital assets using a debit or credit card, so you need cryptocurrency in your wallet to trade with SushiSwap.

People attracted to the benefits of SushiSwap (SUSHI)

• Earning passive income for their added contributions. Impressively, the SUSHI / ETH pool pays twice as much.
• SushiSwap fees are more affordable and users pay a 0.3% fee when they join a liquidity pool.
• SushiSwap provides DeFi users with access to the most popular features such as staking and farming.

Aave

Launched in 2020, Aave is probably the world’s largest DeFi protocol, with a total lock of $8.91 billion. AAVE tokens have skyrocketed from the initial coin offering (ICO) price of $1.76 to the current price of $ 130. With a market capitalization of $2.01 billion, Aave is the 54th largest cryptocurrency in the world.

Earn with Aave

It provides users with a wide range of products that have enabled Aave to rapidly expand its ecosystem over the last two years. Let’s say an investor invests $10,000 in BTC tokens. However, due to financial emergencies, users now want to liquidate part of this investment. Therefore, investors can sell some of their BTC tokens or apply for a personal line of credit from a traditional banking partner.

In general, payday loans have high interest rates and are predatory. As a result, investors have pledged crypto tokens at Aave and are now able to take out loans in the form of digital assets such as DAI fixed to the US dollar. DAI can be uploaded to cryptocurrency exchanges like Coinbase, from which it can be monetized using fiat currencies. Investors are entitled to borrow up to 75% of the promised amount of cryptocurrency and pay a low interest rate (about 4%) instead.

People attracted to the benefits of SushiSwap (SUSHI)

• Aave has made its lending protocols open-source and there are no hidden risks or fees.
• Aave is a non-custodial platform – so it never holds your cryptocurrency directly.
• Aave system provides both stable and floating interest rates to achieve investment goals. Best of all, these pricing schemes can be switched at any time.
• Aave users have an excellent choice of rental pools available. Currently, the network supports 17 different assets.