Faced with bankruptcy, recovering from a low credit rating, or attempting to start a new business, many have discovered how difficult it is to get a bank loan. As a result, lending is becoming increasingly unaffordable. Decentralized financial lending (DeFi), which continues to gain popularity, is struggling with this problem. DeFi loan eliminates the need for banks and complex appraisal processes. Alternatively, a decentralized exchange (DEX) can accept cryptocurrencies as collateral at market prices.
One thing holding back the widespread adoption of DeFi loans is the degree of diversity in the cryptocurrency and financial space. Since each network is configured differently, newcomers found the DeFi world intimidating. For this reason, a multithreading solution with a user-friendly interface is needed.
DeFi’s lending and lending platform, Annex Finance, aims to fill existing gaps in traditional lending using decentralized protocols. The main difference between Annex Finance and traditional financial systems is that they are activated through an integrated DEX token exchange through the community-driven DeFi platform. The application development team is confident that they understand the shortcomings and challenges associated with traditional centralized financial systems and use this knowledge to create what they believe is the best solution for today’s lenders.
The team shares their goal of making Annex Finance a “one-stop shop for DeFi solutions for BSC, ETH and the Poly network,” offering “cryptocurrency lending and borrowing, NFT marketplace, IDO auction and SwapDEX.”
One DeFi Store
As you may have guessed, Annex Finance is not the first platform to try to fill this gap. After reviewing previous projects, the financial application team noted the current strengths and weaknesses of the system. As a result, for lending, addon users will be able to transfer secured digital currencies to the platform, which can be used to secure loans, increase liquidity, or use the annual percentage rate of return (APY). Borrowers do not need to pay on a monthly basis, but they do have to pay compound interest on each block.
What’s more, the platform has also taken into account previous lessons to suggest improvements. One of them is the first to offer a DEX exchange that allows users to generate LP and liquidity to generate high APY returns and increase Annex Finance token, ANN, price or volume, and auction functionality.
The extension defines its auction functions as “open source smart contracts” designed to facilitate the process of starting a new venture on the AnnexSwap exchange. Positioning AnnexSwap as a platform where token creators and communities can launch tokens for a new project, the auction function should channel new capital and traders to the exchange. While the platform usually recommends the group auction feature, users can also choose from other types such as the Dutch stock exchange or fixed auctions. However, the biggest advantage of a group auction is that buyers do not have to wait a certain period of time to place orders, which makes the system more user-friendly.
More information about the funding institution here.
For investors, the platform now offers an automatic reward of 0.2% per day for coins in the wallet, rewarding those who use the so-called “hodl strategy” to trade cryptocurrencies. The price will be used until the user withdraws any of their ANN tokens in the same wallet. The app reached 160 million in total closed value (TVL) in less than two weeks since launch and has shown interest in the services.
The latest feature of the DeFi One-stop Shop is the platform’s own non-fungible (NFT) token marketplace, which gives users the ability to buy, trade and exchange NFTs. With the NFT coin tool, users will be able to engrave digital creations.
to work together
The Finance app currently relies on Binance Smart Chain (BSC) for its low fees and security. However, the Annex Finance team is also looking into several networks, including Ethereum (ETH) and Polygon (MATIC). The plan also includes the launch of the AMM addon, the Liquidator bot, and the creation of an expansion bridge to support ANN tokens across multiple networks.
As other projects develop at a similar pace, the team shares, “Other projects are not seen as a competition, but rather as opportunities to collaborate and expand the use of DeFi.”