In the previous article, we learned the basics of crypto lending and p2p lending. This article will discuss how to launch a crypto lending platform. As explained before, DeFi crypto lending/borrowing is a method of financing that allows individuals to borrow and lend money without using an official financial institution as an intermediary. Through peer-to-peer lending, borrowers receive financing from individual investors willing to lend their own money for an agreed interest rate. Both parties can connect through a peer-to-peer online platform. Borrowers display their profiles on these sites, where investors can assess them to determine whether they want to risk extending a loan to that person.
What is a DeFi Lending Platform?
A defi lending platform allows users to lend and borrow tokens and cryptocurrencies. If you plan to launch a defi lending/borrowing platform, you must build an application that facilitates the above-said operations. The platform can be web-based or mobile app-based, or even both. In a fully-fledged crypto lending platform, the lenders can lend their cryptocurrencies platform and receive interest from the borrowers. The platform would need one customer module and an admin module. Linking wallets to the platform and lending crypto based on predetermined criteria is the basic functionality of the customer-facing application/platform. The tokens need to be locked according to the predetermined criteria. In the admin dashboard, admins will be able to manage the overall functioning of the platform, including setting lending amount, interest rates, reward percentage, lockin periods, set campaigns, and more.
How to build a defi Lending platform?
You have two options if you want to launch a defi lending platform on a high level. Use a white-label defi lending platform and go to market in a short time or build a custom platform from scratch.
White-label Defi Lending platform
A whitelabel defi lending platform allows you to launch your product in the shortest time. The platform will have all the essential features and prebuilt advanced features to help you manage the product operations. Coinfactory’s white label solution offers end-to-end customization that can make the platform match your business brand. The benefits of choosing a Whitelabel solution are
- Less initial investment
- Security audited software
- Go-to-market faster
- Less running cost
- More Ops flexibility
Build from Scratch
Building one from scratch would make sense if you plan to build a staking platform with different user flows and mechanisms from the existing ones in the market. Building from scratch would be more expensive and time-consuming than the white label option. We have created a development checklist for building a defi lending application. This could be helpful for you if you are planning to build a lending application from scratch.
As the defi lending market expands, more startups are developing innovative solutions and platforms to make DeFi lending/borrowing more accessible for common people. Contact us for a no-obligating consultation if you need help launching your defi lending platform.