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Are Crypto Lending Platforms Safe?
Crypto lending has emerged as a part of the blockchain-based financial system, but is crypto lending safe? The yearly crypto lending volume exceeded 40 billion
Fixed Income
Fixed Income refers to those investments, which pay interest until the maturity date. The interest payments are known in advance. The principal is paid back at the maturity or in tranches. The principal payments are known as well in advance. This allows calculating the yield (return) of the Fixed Income instruments based on the Discounted Cash Flow models.
The Fixed Income market can be split into the:
- Bank credit, which are not securities and which are usually not transferable
- Bonds, which are securities, which are transferable, and which are traded over the OTC or exchanges
The Fixed Income market is 5-10 times bigger than the global equity market.
However, in the crypto sector, the fixed income is 5-10 times less than the crypto equity market. This indicates a significant potential in comparison to the traditional markets.
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Compound Finance Review and Crypto Fixed Income
This article focuses on the Compound Finance review in the context of the existing fixed income market and emerging crypto fixed income market. Following topics
Why borrowers need Low Collateral Ratio?
Most of crypto lending platforms advertise their interest rates, as the key benefit for the borrowers and lenders on their platforms. But are the interest
Why is the Collateral Ratio So High in DeFi?
How could a borrower have a low collateral ratio? A collateral ratio in size of 300% + is standard for the DeFi borrowing/lending. A high
Why is DAI Interest Rate 10% in DeFi?
DAI interest rate is around 10% in DeFi. Considering the current low yield on most of the investment classes and upcoming negative interest era, we
What drives the crypto interest rate and how much should it be?
In the previous article, we looked at what influences the fiat interest rate in the fiat-money based economy. The focus of this article is the
What Drives the Fiat Interest Rate and How Much Should it Be?
In every monetary system, there is interest – the price to be paid for using someone else money. In this article, we focus on the