Review on Yield by Japheth Ayuba
Yield provides a Decentralised Lending service that works with a difference
Yield seems to be quite new in the Defi space. I was expecting to see that this project was launched in October last year, which was dubbed the Defi Craze but they decided to sit it out and create something remarkable. Why I say remarkable? The whole system of this project just like many other Defi projects is executed primarily by smart contracts, no human interaction is needed to pay out rewards or release the collateralized crypto set aside to take the loan. But what is more remarkable is the system behind it's total creation. We understand that for many Defi lending pools, the rates are predetermined by the amount of money In the pool, with Yield, there is no pool. Yield works in a similar way to our traditional credit unions. You are to choose Lending rate or create one that fits you. In creating your rates, you get to set the interest rate you are willing to pay, the time period for which the loan will be held before repayment etc. If your terms are suiting to a lender, he will accept to offer you the loan and the rest is left to the smart contracts to execute. Not only do you get to take and give loans, rewards in the YLD token is paid to borrowers and interest value is given to the lenders, everyone goes home happy.
Pros
- On Yield, you choose wether to accept someone else's terms of loan procurement or choose to create yours
- Borrowers earn YLD for repaying before settlement period, Lenders earn interest for giving out their tokens. Everyone wins
- Buyback and burn mechanism helps keep the price stable
- Yield utilizes smart contracts for execution, from collateral pooling to loan providing and rewards distribution, there is no third party involved in the whole transaction process
Cons
- Hasn't gained much popularity
