Earnity is a community-based platform for buying and selling crypto. Led by CEO Dan Schatt, Earnity is working on a highly secure, easy-to-use app for buying, selling, and holding crypto and decentralized finance (DeFi) assets that will serve both new users and long-time virtual currency enthusiasts.
To better understand what the Earnity platform is, below is a brief explanation of DeFi products.
DeFi products are digital assets and protocols that are built on Ethereum. They aim to provide a more open, transparent, and accessible financial system that is not controlled by any central authority.
The DeFi ecosystem has seen explosive growth in recent months, with the total value locked in DeFi protocols reaching over $1 billion in August 2020. This rapid growth is due to the increasing demand for alternatives to traditional financial products and services, often seen as opaque and inaccessible.
With the rise of DeFi, a new era in finance commences where anyone can access the same financial products and services as traditional institutions. This shift could profoundly impact society and the economy as we know it.
Earnity CEO Dan Schatt looks at some of the most popular DeFi products.
MakerDAO: Maker is a decentralized autonomous organization that creates and maintains the Dai stablecoin. Dai is a digital currency pegged to the US dollar and intended to be used as a stable store of value and unit of account.
MakerDAO’s flagship product is the Dai Credit System. Users may collateralize ETH or other ERC20 tokens and generate Dai through it. The Dai Credit System is designed to be “overcollateralized” to withstand large price swings in the underlying assets. Maker also recently launched Multi-Collateral Dai (MCD), supporting multiple collateral types, including BTC, BAT, REP, and ZRX.
Compound: Compound is an Ethereum-based protocol that users can use to earn more money on their crypto holdings. It does this by lending out digital assets to borrowers, typically using them for margin swaps or to pay for transaction fees.
Compound currently supports many assets, including ETH, BAT, USDC, and more. It also allows users to make withdrawals at any time without penalty.
Dharma: Dharma is a decentralized lending platform that allows users to borrow and lend cryptocurrencies. It offers a simple interface and supports a variety of popular assets, including ETH, DAI, USDC, and WBTC.
With Dharma, users may set their own terms for loans, including the loan amount, profit rate, and repayment period.