What is DeFi Lending in Nigeria
What is DeFi Lending in Nigeria revealed. We tested and verified the best guide to DeFi lending for Nigerian Traders.
This is a complete guide to DeFi lending in Nigeria.
In this in-depth guide you’ll learn:
- What is DeFi Lending?
- What is a DeFi lending protocol?
- What is a DeFi loan without collateral?
- What are the risks with DeFi lending?
- How can I trade Bitcoin with $5 (2 096 NGN)?
- Which brokers offer a signup bonus on a $5 (2 096 NGN) deposit?
And lots more…
So if you’re ready to go “all in” with the best-tested guide to DeFi lending in Nigeria…
Let’s dive right in…
CySEC, FCA, FSA, FSCA, Labuan FSA
FSA, Cysec, FSCA, FSC,
ASIC, FSA, CBI, BVI, FSCA, FRSA, CySEC, ISA, JFSA
CySEC, ASIC, FSCA
ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB
What is DeFi Lending in Nigeria (2023)
What is Decentralized Finance?
👉 Decentralized finance (also known just as DeFi) is a blockchain-powered financial ecosystem. As a type of investment or finance, it enables users to purchase and sell assets and financial services directly.
👉 DeFi employs blockchain technology, which links users without a central server and enables the safe transmission of data and assets under the users’ supervision.
👉 Transactions are governed by “smart contracts,” computer programs that utilize blockchain and execute automatically when the predetermined conditions are satisfied. They utilize the blockchain to store and transmit digital assets and smart contracts to ensure parties fulfil their obligations.
👉 The potential and use of DeFi will primarily rely on user requirements and legislation. However, people and organizations may invest and get finance using DeFi applications that connect supply and demand, utilizing blockchain to ensure the security of all transactions.
👉 Since the code for DeFi applications is public, anybody with Internet access may use it, build, and provide services (such as lending), and combine existing services.
👉 DeFi software and systems are freely accessible to the public. Therefore, they may be duplicated, modified, or altered to meet the user’s requirements.
👉 To use DeFi applications, you will need a virtual wallet to hold tokens, the “hard money” in blockchain, which could be purchased using euros, dollars, Nigerian Naira, or other legal currencies.
👉 Users of the DeFi app seeking a return on their token investments can create a smart contract to sell crypto at a specified price.
👉 Botswanans who want to purchase tokens cab program a smart contract to acquire them automatically when they reach the specified price. In both instances, transactions are automated, and no intermediary is involved.
What is DeFi Lending, and how does it Work?
👉 In a wallet, crypto assets do not earn interest. The underlying value may grow or fall but owning that specific coin will not earn you anything. Here, DeFi loans come into play.
👉 Imagine being able to lend your cryptocurrency to someone else in exchange for interest. Banks already operate this way, yet few people have access to this service. In the DeFi universe, anybody may become a lender.
👉 You can earn interest on those assets by lending your cryptocurrency assets to others. There are several methods to do this, but loan pools are the most prevalent.
👉 These platforms and protocols work like the lending offices of a conventional bank. DeFi provides the same services as brick-and-mortar financial institutions (loan, borrowing, trading, investing, etc.) but with the added advantages of blockchain technology.
👉 Using a smart contract, which can be found on platforms like Ethereum, enables users to pool their assets and distribute them to borrowers according to the terms of the contract.
👉 As each loan pool has its unique method for distributing interest to investors, it is important to investigate the pool in which you would want to participate as an investor.
👉 This recommendation also applies to borrowers since each pool will take a unique strategy for borrowing from their assets and the borrowing rules.
👉 When a borrower applies for a loan at a bank, they must provide collateral. When obtaining a car loan, the vehicle itself serves as collateral. If you default on your loan, the bank will repossess your vehicle. Given that a decentralized system is:
➡️ It lacks actual property that can be used as collateral
👉 Therefore, a different approach is required. When a borrower applies for a loan, they must provide collateral of greater value than the loan amount. This implies they must deposit an amount of cash using a smart contract that is at least equal to the amount they want to withdraw.
👉 However, the collateral might be in a range of currencies. After a few months, you will be required to repay the loan and get the collateral back.
👉 The borrower is pleased since they did not have to sell their original collateral. Likewise, the pool is pleased because it can now share a portion of crypto with the pool of investors.
DeFi Lending versus Conventional Lending
👉 The conventional financial system comprises borrowing, lending, margin, and spot trading. However, the DeFi ecosystem has evolved and can now provide comparable financial services.
👉 One of the most significant distinctions between DeFi and traditional financing is that traditional banking entails a time-consuming procedure and frequent status checks. DeFi, on the other hand, provides loans more quickly if the borrower satisfies all collateral conditions.
👉 Smart contracts manage the whole review procedure, making life simpler for both the borrower and the lender. Subsequently, DeFi lending often provides higher returns than conventional lending markets.
Benefits of DeFi Lending
👉 DeFi lending works primarily by requiring participants to deposit cash at an interest rate. These interest rates are superior to those given by conventional banks. Other than this, DeFi financing has several advantages over the conventional lending system.
👉 A comprehensive digital lending procedure is primarily beneficial for evaluating and monitoring the market for borrowing and lending. Therefore, another key advantage of the DeFi loan procedure is lending analytics.
👉 The loan analytics may be used to maximize available finances. It also enables different DeFi lending platforms to acquire data on loan sources that may be used to enhance the loan’s performance.
Immutability and Transparency
👉 Blockchain is readily verifiable by all network participants. DeFi financing guarantees transparency since the blockchain’s decentralized structure primarily verifies the authenticity of all transactions.
👉 Accountability is one of the most significant advantages of DeFi financing. Blockchain is a public ledger that may provide on-demand access to records of all DeFi loans and applicable laws and regulations.
👉 When a DeFi loan is approved, the public distributed ledger primarily documents all financial activities.
The system is permissionless
👉 Decentralized lending allows everyone with a DeFi crypto loan wallet permissionless and direct access. In addition, access to DeFi apps based on blockchain networks is simple, regardless of the availability of funds or location.
Flawless Interoperability and Programmability
👉 Using the integrated software stack, it can be guaranteed that the DeFi lending protocols complement and interact.
👉 Smart contracts also allow the creation of new types of financial instruments and digital assets, which are extremely programmable.
👉 DeFi loans are managed rapidly, and the loaned amount is accessible immediately upon approval. In addition, the processing of DeFi loans is expedited because DeFi lending platforms are backed by cloud services that aid in identifying fraud and other DeFi lending hazards.
👉 The DeFi lending platform has recently developed novel approaches to savings management. Subsequently, consumers may optimize their profits and use interest-bearing accounts by connecting to many lending sites.
👉 Metamask, Gnosis Safe, and Argent are examples of crypto wallets and DeFi lending protocols that allow users to be the only custodians of their crypto assets.
👉 It also enables users to connect with decentralized apps safely and sell, purchase, earn interest on investments, and move cryptocurrency.
Challenges involved with DeFi Lending
👉 Several major talks on decentralized finance concentrate primarily on the advantages of DeFi lending. However, it is important to highlight the disadvantages while examining its potential. Here is a list of significant obstacles you could face shortly after embracing DeFi lending.
👉 Regarding blockchain technologies and DeFi-based loans, liquidity is also a major consideration. The DeFi project’s overall locked-in value was about $77.29 billion in June 2023. However, since June 2023, the market value of DeFi has dropped to less than $80 billion.
👉 There were major shifts in the DeFi market because of the May 22 fall of Terra (LUNA) and its stablecoin Terra USD (UST), when currencies like USDD lost their peg to the US dollar.
👉 Additionally, the DeFi loan procedure has been affected by the bearish state of the crypto market. Subsequently, the DeFi sector is smaller and less dependable than more conventional forms of finance. Subsequently, it might be difficult to have faith in an industry plagued by liquidity issues.
👉 The shared accountability aspect is the most counterproductive among the many drawbacks for consumers. The DeFi projects will not be held accountable for any mistakes made on your end.
👉 They remove the need for intermediaries, making the user solely accountable for their assets and money. Because of this, the DeFi lending process needs technologies that can eliminate room for error.
👉 To the extent that a DeFi lending process hosts a blockchain, any inherent instability in that blockchain may be inherited by the process.
👉 The Ethereum blockchain is currently evolving in several ways. For instance, there could have been dangerous missteps during the switch from Ethereum’s previous PoW consensus to the new POS mechanism in version 2.0.
👉 There are a few potential sources of trouble for DeFi lending regarding keeping the host blockchain scalable. For instance, there is a longer waiting period for confirmation of DeFi transactions.
👉 It is also possible that transactions using the DeFi protocol may become more costly during the congestion phase. Because of this, overall scalability is compromised.
What does the Future Hold for DeFi Lending in Nigeria?
👉 DeFi financing has had phenomenal growth over the last several years. Even though 2023 is expected to provide new obstacles, there will also be good chances. Several DeFi-based businesses are gaining traction as more investors invest in superior financial technology.
👉 The popularity of payday loans is also growing, and this trend is anticipated to continue in the coming days.
👉 However, flash loans are more susceptible to suspicious and fraudulent activity and have seen fewer issues lately. Regarding financial breaches and security concerns, DeFi loan processing is still trailing despite its technical benefits.
👉 It is anticipated that it will be renovated and enhanced in the future. Currently, the financial system is experimental, novel, and plagued with issues, particularly scalability and security.
👉 However, we continue to think the best is yet to come. In addition, Ethereum 2.0 could provide a solution for the DeFi business.
👉 Sharding is a feature of Ethereum 2.0 that can potentially increase the network’s scalability. Sharding is a method for splitting a database into smaller, more manageable portions for client usage.
👉 The newest technology breakthroughs will continue transforming how companies and people share information, connect, and use financial possibilities as DeFi financing continues to provide its consumers with financial independence and user-friendly solutions.
How to Choose the Right DeFi Lending Platform in Nigeria
👉 The need for Bitcoin brokers has grown because of the thousands of individuals interested in investing in cryptocurrencies globally.
👉 Numerous Bitcoin brokers will be offering their services on the market, but you will also run across reports of frauds involving Bitcoin brokers.
👉 Not all Bitcoin brokers can be trusted since many of them have turned into frauds. Even if they are, they lack adequate security measures or are deficient in certain key areas, which may cause a lot of issues for Bitcoin traders.
👉 You must thus carefully choose a crypto broker, and we have provided key features that you must verify before you deal with a crypto broker.
Background and Financial Backing
👉 A good Bitcoin broker has robust financial support, which necessitates a substantial capital basis. This ensures that your Bitcoin is secure and that the broker will not go bankrupt.
Experience and Credibility
👉 The crypto market is young compared to other markets. However, this does not imply that all brokers are unskilled. There are reputable and professional Bitcoin brokers available for usage.
👉 Bitcoin brokers must possess the necessary qualifications, such as licenses from famous and respectable regulatory authorities and specialists on their staff. You can read reviews of the broker and get insight into their services to assess whether they are a good match for you.
Responsive Customer Support
👉 Since Bitcoin trading is available 24 hours a day, seven days a week, you could have a problem or query at any moment.
👉 Therefore, it is important to seek a broker who is accessible 24/7. Regardless of your time zone, they should have a competent support crew that can respond to inquiries and concerns in a timely and professional way.
Crypto Trading Fees and Commissions
👉 You must investigate the commissions and other costs that Bitcoin brokers impose. Ensure the broker outlines the fees they charge, and any other dangers associated so that you may make an informed choice.
👉 No Bitcoin broker is complete without a user-friendly web, desktop, or mobile platform, often all three. These platforms are required for an assortment of reasons.
👉 They give customers a great degree of simplicity in Bitcoin trading, and a well-designed platform provides them with a variety of possibilities.
👉 These choices make things easier and more comfortable for novice and seasoned Bitcoin traders alike. Ensure that your preferred dealer has a modern platform or a selection of platforms.
Longevity of brokerage
👉 There may be a small number of trustworthy Bitcoin brokers that have just started up, but they are quite rare. If a Bitcoin broker has been in existence for an extended length of time, it has been doing something right, as shown by the fact that customers continue to depend on it.
Account Registration Process
👉 Very few traders realize that the registration procedures of Bitcoin brokers reveal a great deal about their character. Veteran traders in this industry can rapidly determine if a broker is excellent or terrible based just on the sign-up procedure.
👉 You may initially have some problems with spotting the legit Bitcoin brokers. However, as time goes by, you will have a better time distinguishing between excellent and unfavourable brokers. A vast number of depositing fees is a frequent indicator of a fraudulent sign-up procedure.
👉 Most instances in which Bitcoin brokers urge their customers to deposit a big sum of money to join up are probable scams. This is made apparent by the fact that many reputable Bitcoin brokers now accept little or no deposits from prospective clients.
👉 You should opt for these Bitcoin brokers instead of those that want vast quantities of money for crypto transactions.
👉 Additionally, investigate the process’s security. You can do this by examining the search bar’s top-left corner for an SSL certificate. This certificate ensures that a website is secure and will not expose your data to hackers.
Technical Support for Cryptocurrencies
👉 The distinction between customer service and technical assistance cannot be overstated. Most firms have technical support teams to assist clients with issues that need assistance from experts in that field.
👉 A significant majority of Bitcoin brokers lack any form of technical support personnel. They believe that their customer service professionals are sufficient for the task and depend only on them.
👉 The team should comprise Bitcoin industry veterans with decades of expertise. They should have a thorough understanding of how things operate and be able to deliver rapid answers within minutes.
👉 Determining whether a Bitcoin broker has a competent technical support staff might consume considerable time. In most instances, a substantial bit of trial and error is required.
👉 If a Bitcoin broker does not provide any convenience, they are not worth your time. As the environment changes, this sector is undergoing tremendous change. To make the appropriate judgments at the right time, you must be current on many matters.
👉 This is only achievable if your broker provides you with features that enhance your entire experience. Your broker’s platform should be compatible with a range of devices.
👉 Using your smartphone or tablet, you should be able to access your account and see all your trades and other crypto-related actions.
👉 Easy accessibility enables you to trade on the move while guaranteeing that you do not miss anything crucial and aside from that, the broker should utilize straightforward language.
👉 Today, one just cannot do without a reliable demo trading solution. There are several complex circumstances involved in Bitcoin trading. If you are just beginning in this sector, you will not know how to make timely judgments.
👉 You will lose a substantial amount of money as a result, and Bitcoin demo trading might help you avoid these errors.
👉 It will instruct you on trading in the actual world while guaranteeing that your selections do not negatively affect your funds. With this option, you will neither gain nor lose money. Nonetheless, you will get knowledge about how cryptocurrency trading is conducted.
5 Best DeFi Lending Platforms in Nigeria
👉 Any in-depth discussion about debt consolidation loans would need to include a rundown of the most reputable debt consolidation loan companies.
👉 The marketplace for DeFi financing has seen the emergence of a substantial number of new creative platforms, each of which has the potential to bring about significant advances in cryptocurrency and financial services.
👉 The following is a synopsis of some of the most successful crowdfunding lending platforms currently available.
👉 Aave, which debuted in 2017, is one of the largest and most popular platforms offering the greatest loan rates.
👉 It is an open-source, non-custodial platform based on Ethereum that enables users to provide and borrow crypto assets and receive a return on the assets they contribute to the protocol. Aave is an open-source liquidity protocol that builds digital asset pools to promote user lending.
👉 In addition, AAVE, the native token of the system, provides reduced costs while trading on the platform or using it as collateral. The community regulates it, and token holders can vote on future protocol updates.
👉 Aave gives customers varying DeFi yield and interest rates for every supported item, which might vary per network. As an Aave lender, you must pay the blockchain transaction costs while giving and taking assets.
👉 Aave’s total locked value (TVL) is $5.77 billion [2022/09/18]. In addition, it is regarded as one of the finest lending protocols and most secure DeFi systems, thanks to third-party audits and assessments.
👉 Compound, which is built on Ethereum, is another major participant in the realm of DeFi lending rates. You may diversify and develop your portfolio by depositing or borrowing any of the several cryptocurrencies mentioned on the protocol.
👉 With Compound, you may earn interest on your funds for as long as they are deposited. In addition, you may borrow money from the protocol if you want to invest in other assets.
👉 In addition, Compound’s COMP token could generate higher profits when lending crypto to the platform for liquidity.
👉 Because the security provided by the Compound protocol is of the highest calibre, you might feel confident entrusting it with your funds.
👉 This software has a real-time price feed that allows for simple price monitoring depending on the availability of liquidity. In addition, Compound allows users to deposit or withdraw digital assets daily.
👉 The annual percentage yield (APY) on Compound varies per coin, with the highest DeFi lending rates being 3% for USDT and 2.68% for DAI.
👉 The TVL of the complex is $2.11 billion [2022/09/18]. In addition, Compound is recognized as one of the most secure DeFi systems due to its 95 Security Score.
👉 There is no question that Maker of MakerDAO is yet another noteworthy addition to the list of platforms that may get the greatest DeFi loans.
👉 It has widespread use as a decentralized governance platform powered by DAI. It always aims to maintain a price of one dollar, making it eligible for classification as a stablecoin.
👉 It is interesting to note that MakerDAO has a decentralized governing community that manages the production of DAI tokens. Therefore, utilizing the built-in governance mechanism included in the Maker protocol paves the way for creating decentralized artificial intelligence (DAI).
👉 The Maker DeFi protocol includes a set of smart contracts designed specifically to lower the price volatility of the DAI stablecoin.
👉 Because of this, it may be beneficial to both lenders and borrowers since it eliminates the worries associated with counterparty risk. The fact that MakerDAO was the first DeFi protocol to achieve substantial levels of acceptance is the standout feature that sets it apart from other similar projects.
👉 As of the right moment, Maker remains one of the most popular decentralized applications (dApps) on Ethereum. This is because the Maker community has effectively created a comprehensive ecosystem using DAI, which consists of several applications and services.
👉 Once you link your cryptocurrency wallet to Maker, you can deposit, borrow, and sell your cryptocurrency on the MakerDAO platform.
👉 MakerDAO provides customers with adjustable DeFi financing rates for DAI ranging from 0% to 8.75%. Accessing the wallet is free. However, users must pay Ethereum network gas costs for deposits and withdrawals.
👉 BlockFi is an all-inclusive platform for trading and earning cryptocurrencies. BlockFi offers monthly returns of up to 8.5% on numerous cryptocurrencies.
👉 Furthermore, there are no hidden fees or minimum balance limitations. You can keep all your digital assets in one location and earn interest on them. The most compelling aspect of BlockFi is its simplicity of usage.
👉 In all other respects, it is an excellent option for users of all skill levels. For example, if you are a novice, you can submit information to service managers to get DeFi financing rates. Or, if you are an expert, you may obtain help for your concerns.
👉 SushiSwap, an Ethereum platform launched in 2020, has quickly become one of the most popular options for trading digital assets and earning DeFi loan rates without the need for intermediaries. Over $4 billion is safely locked up in SushiSwap’s trading pools.
👉 SushiSwap is an Ethereum-based application to incentivize a community of users to maintain a trading platform for digital assets.
👉 Furthermore, SushiSwap accomplishes its objectives via a network of liquidity pools, each of which you can join by providing ETH and an ERC20 token of your choosing for trading purposes. The platform’s token is utilized for both voting and sharing transaction costs.
👉 SushiSwap’s interface is simple since all users must do to utilize the platform is placed their funds in smart contracts, after which other users could use those funds to become cryptocurrency traders.
👉 SushiSwap’s standout feature eliminates the need for a centralized administrator when buying and selling digital goods. Subsequently, the people who own its native cryptocurrency are the ones who get to make the decisions about it.
The Best CFD Brokers in Nigeria
👉 In this article, we have listed the best brokers that offer trading solutions and opportunities to traders in Nigeria. We have further identified the brokers that offer additional services and solutions to Nigerian traders.
Best MetaTrader 4 / MT4 Broker in Nigeria
👉 Overall, Axi is the best MT4 Broker in Nigeria. More than 130 different items from Axi are available for trading on MetaTrader 4. Axi offers some of the greatest trading conditions to Nigerian traders, including minimal opening spreads on all account types.
Best MetaTrader 5 / MT5 Broker in Nigeria
👉 Overall, RoboForex is the best MetaTrader 5 broker in Nigeria. RoboForex provides traders with a selection of 12,000 tradable instruments that may be traded on MetaTrader 5 in addition to a few more potent trading platforms.
Best Broker for beginners in Nigeria
USD 100 / 41450 NGN
MetaTrader 4, MetaTrader 5, Ava Social, Ava Protect, Trading Central
Account Activation Time
👉 Overall, AvaTrade is the best Broker for beginners in Nigeria. For new traders in Nigeria, AvaTrade provides some of the greatest teaching resources. Along with webinars, seminars, and other events, there are several manuals and videos.
Best Low Minimum Deposit Broker in Nigeria
👉 Overall, HF Markets is the best Low Minimum Deposit Broker in Nigeria. With a minimum investment of 2,000 Naira, HF Markets provides live trading accounts to Nigerian traders.
👉 Popular MetaTrader cryptocurrency broker HF Markets also has an in-house trading app for iOS and Android users.
Best ECN Broker in Nigeria
USD 10 / 4145 NGN
ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB
MetaTrader 4, MetaTrader 5, cTrader and TradingView
Account Activation Time
👉 Overall, Pepperstone is the best ECN Broker in Nigeria. One of the biggest forex and CFD brokers in the world, Pepperstone provides services in more than 170 nations.
👉 Nigerian traders should anticipate among of the quickest transaction execution times with little to no slippage and no requotes.
Best Islamic / Swap-Free Broker in Nigeria
USD 0 / 0 NGN
ASIC, BVI, CFTC, FCA, FFAJ, FSC, IIROC, MAS, NFA
Metatrader 4 and Metatrader 5
Account Activation Time
👉 Overall, OANDA is the best Islamic / Swap-Free Broker in Nigeria. Three different retail accounts are available from OANDA. This includes a specific Islamic account that is provided to Muslim traders in Nigeria who adhere to Sharia law.
Best Trading App in Nigeria
FSC, FSCA (south africa), ASIC, CySEC
MetaTrader 4, MetaTrader 5, WebTrader, FBS Trader – all in one mobile trading platform.
100% Deposit Bonus
Account Activation Time
👉 Overall, FBS is the best trading app in Nigeria. FBS provides its cryptocurrency account through the FBS Trader. Many features and some of the greatest market analyses are available to Nigerians.
Best Nigerian Naira Trading Account Broker in Nigeria
👉 Overall, Exness is the best Nigerian Naira trading account Broker in Nigeria. One of the top multi-currency brokers that provide accounts in NGN is Exness. Exness is a broker that only works with MetaTrader and has a limited selection of trading options.
Best Lowest Spread Broker in Nigeria
👉 Overall, IC Markets is the best lowest spread Broker in Nigeria. IC Markets provides some of the narrowest spreads in the market because of its pure ECN execution mechanism.
👉 Nigerian traders can choose from a variety of crypto CFDs at IC Markets, which offers services to traders all over the world.
Best NDD Broker in Nigeria
👉 Overall, XM is the best NDD Broker in Nigeria. XM is a well-known No-Dealing Desk broker that offers services to over 2.5 million traders worldwide. A portion of XM’s broad selection of more than 1,000 financial products includes cryptocurrency CFDs.
Best STP Broker in Nigeria
USD 100 / 41450 NGN
CySEC, FCA, FSA, FSCA, Labuan FSA
Meta Trader 4
Account Activation Time
👉 Overall, Tickmill is the best STP Broker in Nigeria. One of the finest brokers for new traders in Nigeria is Tickmill, which provides outstanding STP and ECN execution along with clear trading costs.
Best Sign-up Bonus Broker in Nigeria
USD 1 / 415 NGN
Account Activation Time
👉 Overall, SuperForex is the best sign-up bonus Broker in Nigeria. One of the brokers with the broadest selection of promos and incentives is SuperForex, which provides customers with a choice of 11 trading accounts.
👉 As DeFi develops further, Nigerians can expect to see decentralized systems working toward making these services on par with their traditional counterparts.
👉 Since these options are accessible to everyone with an internet connection, anyone with access to the internet may potentially purchase and borrow cryptocurrency.
👉 Do your research before determining whether a crypto loan is the best option for you since investing in crypto, in general, could be a slight roller coaster ride.
Can you borrow money on DeFi in Nigeria?
Crypto loans can borrow assets outside fiat currencies such as the Nigerian Naira. Most prominent cryptocurrencies, such as Bitcoin and Ethereum, could be borrowed against other cryptocurrencies, such as Solana. This path might be advantageous for people who want to trade or stake more cryptocurrency than they already own.
How do Nigerians make money with DeFi lending?
Like with staking, you can generate passive income with DeFi lending by placing your tokens into an account for a long time. As you may have guessed, when you lend cryptocurrency to a platform, it leases it out to other cryptocurrency borrowers. In exchange, you receive interest.
Is DeFi lending popular in Nigeria?
Yes, Nigerians are among the first people who took advantage of DeFi lending.
How can Nigerians get started with DeFi Lending?
Obtain a wallet that supports Ethereum and can connect to many DeFi protocols through your web browser. MetaMask is a popular option. Second, get the appropriate currency for the DeFi protocol you want. Currently, most DeFi protocols reside on Ethereum. Thus, you will need to purchase ETH, or an ERC-20 token to utilize them.
How does crypto lending work in Nigeria?
Crypto lending enables individuals to lend out crypto, like conventional banks loan out fiat cash, and lenders could receive interest. Crypto lending is decentralized finance (DeFi) in which investors loan their cryptocurrency to borrowers in return for interest payments.