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Why do platforms still need to borrow money with lP (why do platforms need to open membership when borrowing money)

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Why does platform lending require lP

Why does platform lending require lP? Why does platform lending require lP? In the digital currency market, many project parties have launched loan businesses in order to obtain high interest rates and profits. However, there are significant loopholes in this, as users can use various loan agreements to engage in arbitrage, leveraged trading, and other behaviors For example, UniswapV3’s LP (liquidity provider) generates vTokens by mortgaging USDT/DAI or ETH/DAI, and provides corresponding return rates proportionally; The vaults of lending platforms such as Compound and Aave use the same method to create new token pools; The assets already issued on Uniswap include BTC, ETH, EOS, and LINK. These are currently one of the largest DeFi projects in the market However, due to some issues, many people choose to borrow other DeFi projects as collateral and neglect lp. Because we do not believe that lp is the best solution. So if we consider it a good product, then it is a good LBP. The main benefit of LDP is that it can help users reduce borrowing risks and increase profits

Why do platforms need to open membership for borrowing money

In the coin circle, borrowing, platform borrowing, etc. are all providing services and financial tools for users.

However, these so-called “loans” are the ways in which funds are deposited into the platform’s borrowing account as members, in order to earn interest, which is provided by the platform itself. Therefore, borrowing money from the platform is not a technical challenge, but a process that requires continuous improvement of one’s own abilities. Moreover, for some digital currencies with very high transaction volumes, If you want to become a part of the exchange, you must first activate a membership system, because this way, users on the platform can receive corresponding rewards.

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