There is a big competitor to banks now. This is because of the rapid growth of Decentralized Finance (DeFi). More than $10.65 billion have been locked in Aave, a popular peer-to-peer (P2P) lending platform. Are you that entrepreneur aiming to build a non-custodial platform for borrowers and lenders? Create an Aave clone now.
How does an Aave clone function?
- Borrowers need to create an account on the decentralized lending platform. Before opting for a loan, debtors need to deposit a specific amount as collateral. For instance, they can pledge cryptocurrencies, crypto tokens, stablecoins, and DeFi tokens on the Aave clone platform.
- Later, eligible borrowers can choose either the variable or stable interest rate as per their preferences.
- How much loan can be disbursed to debtors? Generally, it depends on the total amount deposited and the available liquidity.
- Moreover, the repayment period is also mentioned in advance. After a while, borrowers should pay back the amount in cryptocurrencies, DeFi tokens, and stablecoins along with the interest rate.
- How can debtors check the status of the loan amount on the Aave clone? They must press the dashboard and see the variable and stable interest rates. This varies based on the market conditions and the level of demand from investors.
- Finally, the total interest repaid by the lender depends on the supply and demand ratio of assets. What about the revenue? Depositors will receive updates about the flash loan fees for granting credit. They can tap the Annual Percentage Yield Rate (APYR) to calculate how the annual rate evolves over a period per asset.
Wrapping Up
Do you want to break all records in the times of Web 3.0? Build an Aave like platform by connecting with a DeFi creation enterprise soon.