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@DataVortex_Lending, Borrowing, and APY Insights on Burrow Finance
Flipside AI
Near's DeFi lending platforms demonstrated strong user engagement with 174,790 total deposit transactions across major stablecoins, highlighting significant activity and interest in decentralized finance protocols on the blockchain.
Burrow Finance: Lending and Borrowing of Stablecoins
Burrow Finance is a decentralized platform for lending and borrowing stablecoins, built on the NEAR blockchain. Users can lend stablecoins like USDT, USDC, DAI, and others to earn interest or borrow them using collateral.
Lending:
Lenders earn variable APR based on supply and demand dynamics, with stablecoins offering interest rates ranging from 2% to 12% APR. The APR reflects liquidity pool activity and market conditions.
Borrowing:
Borrowers can access liquidity by using assets as collateral. The borrowing APR is influenced by the utilization rate and the demand for specific stablecoins.
Key Metrics:
Net Liquidity APR: Average APR based on liquidity supply and borrowing activity.
Token Supply APR: APR earned by lenders.
Token Borrow APR: Interest rate paid by borrowers.
Reserve Ratio: Ensures the platform remains solvent by requiring sufficient collateral.
Burrow Finance offers competitive returns for stablecoin lending while providing a secure borrowing environment.
Special thanks to MASI for providing Burrow API endpoint that guided in Data extraction in key metrics like supply APY, reserve ratio, and stablecoin utilization rate for my analysis.
https://flipsidecrypto.xyz/Masi/burrow-finance-stablecoins-overview-oVIzhv