A DeFi Lending platform generates profits through several key channels:
Interest rate spread: It earns profits between the interest paid by borrowers and the interest distributed to lenders.
Platform Fee: Some Small fees are charged on lending, borrowing, withdrawals, or flash loans.
Liquidation fee: When borrowers are liquidated, the platform often collects a portion of the collateral as a penalty.
Native Token Utility: Some platforms issue tokens that generate revenue through fees, governance, or staking.
Each of these helps maintain the sustainability and profitability of the platform while keeping it decentralized. Thus, experience the numerous benefits with a strategic approach by collaborating with industry-expert Defi Lending and Borrowing Platform Development companies.
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