What is Chainlink Coin? How does Chainlink Lending Work? |
Posted: October 6, 2020 |
If you have heard the term blockchain, chainlink cannot be an unknown for more. We can say that this is a great decentralized network of nodes. These nodes provide important data from on-blockchain to off-blockchain smart deals via oracles. We know why a centralized system cannot be a future process. A centralized process comes with readability issues that we cannot tolerate anymore. Thanks to blockchain technology that it is completely decentralized and comes with extra secure hardware and adding benefits. The chainlink process starts when a smart contract requires some data. And here a smart contracted enabled blockchain helps the process. But how it is going to help you! Chainlink coins or tokens are the next popular thing after money. Generally, chainlink token holders use chainlink token as a long term investment. One of the best ways to increase the overall return on investment is lending chainlink coins to earn interest especially when you are waiting for the rise of token value. How does chainlink lending work? We have already mentioned that here smart contracts will be powered by blockchain technology. Nowadays, more and more crypto lending sites are offering safe and secure ways for chainlink investors so that they can securely lend their chainlink tokens to borrowers and simultaneously earn a good income. You may think that what if I do not get my chainlink token value back. Don’t worry! There is no such chance actually. These chainlink lending platforms are completely risk-free. Generally, link token borrowers have to provide sizeable collateral in form of a crypto asset in order to take a chainlink loan. If the borrower fails to pay back the chainlink loan within the given time, the crypto assets will be liquidated automatically with the help of a smart contract to pay back the chainlink lender. Chain link fixed deposit and savings account Well just link any traditional bank’s savings account and fixed deposit benefits, in the chainlink regime, you will get the same facilities. You do not need to wait for a borrower to earn some value. You can use your chainlink coin in a link savings account or make a fixed deposit and automatically you will start earning interest. How to borrow chainlink? Well, we should also think about the opposite scenario. If you need to borrow a chainlink, you will also go through a safe, fast, and smooth process. But one of the most common reasons for borrowing chainlink is shorting chainlink. There are a lot of users who borrow chainlink for short selling chainlink. You can also do the same with the help of a margin trading account. It is an alternative way. You can directly borrow to get a loan or you can use the margin trading account. More and more people are getting interested in the chainlink coin and its benefits. It seems the future of money and related processes. If you have not explored the benefits, you should do it now before the place gets crowded.
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