Chainlink Lending and How to Earn Interest
By Space Coast Daily // December 2, 2021
People who HODL Chainlink tokens for the long term can choose to increase their returns by lending them out to earn interest as they wait for the coins to increase. On crypto lending platforms like YouHodler, Gemini, Celsius, and BlockFi, your Link tokens could earn you up to 8% APY.
By comparing the interest rates, reviews, and products from various crypto lending companies, you will find the best site to boost your earnings for you. Furthermore, a crypto loan calculator could help you calculate your estimated annual Chainlink returns.
Here is How Chainlink P2P Lending Works
By using blockchain-powered smart contracts, several crypto lending platforms are able to offer a secure environment for Chainlink investors to securely loan out their tokens and generate a substantial level of passive income.
Chainlink lending sites are less risky in the sense that borrowers are required to deposit a sizeable amount of collateral in the form of crypto before they can access a loan. This way, if the borrower is not able to pay their loan due to one reason or another, the collateral will be liquidated under the terms of the smart contract to settle with the lender.
One major issue is that finding a trustworthy borrower on a P2P lending site can prove time-consuming for Chainlink holders; this is especially true if the loan amount is large. If you are looking for a simple way to lend your Link tokens, then consider opening a crypto savings account with reputable platforms such as YouHodler. A fixed deposit is a great alternative means to earn more interest right away.
What is CHAINLINK and how can you get an instant LINK loan on YouHodler?
Chainlink’s platform is primarily designed to bridge the gap between smart contracts on the blockchain and real-life applications beyond the blockchain.
One central feature of Chainlink is the inclusion of oracles that help to find and verify data in the real world. Oracles efficiently integrate smart contracts into the blockchain. Chainlink developers have hinted that LINK connectivity features are compatible with different types of blockchains.
Chainlink overcomes some of the critical problems facing smart contracts by feeding real-world info via decentralized oracle networks in real-time. Link tokens have been gaining widespread popularity in the crypto community recently and, as it stands, Chainlink is one of the hottest cryptos in the market.
Early HODLers who invested in Link have seen their returns grow considerably. Rather than letting your Link idle in your wallet, you should think about keeping them in a crypto interest account to earn more Chainlink.
Earn interest on your Link tokens and watch your profits increase exponentially.
Risks in Chainlink lending
While earning interest on your Link tokens sounds attractive, there are a few risks to be aware of. Many platforms insure their insurance funds, but if a large number of borrowers default on their loans, that could hamper the lending company’s ability to pay you interest.
When this happens, the platform risks going bankrupt, which means you could potentially lose your funds in worst-case scenarios.