How Covalent Can Impact DeFi Lending

Asian Ubuo
2 min readJun 27, 2021

DeFi simply is a short term for “Decentralized Finance”. It’s an umbrella term that houses various applications and projects in the blockchain space which is geared towards disrupting the traditional finance world.

DeFi has given finance a new direction by enabling “LENDING” and “BORROWING”. Generally regarded as “Open Finance” ; decentralized lendings offers crypto holders the lending opportunites to gain annual yields. Decentralized borrowing inturn has created an avenue for individuals to borrow money at a specific interest rate. The basic intentions of lending and borrowing has been and is to serve fianacial service use cases while also fulfilling the basic needs of the crypto currency community.

Covalent evidently can also play a role that impacts this DeFi area positively. Being a unified API that provides full transparency and visibility to assests across all blockchain networks it’s expactant to have a useful contribution to the “LENDING” and “BORROWING” area of DeFi

Firstly, through the Covalent’s “COMPOSABILTY” feature; a critical part of the DeFi created by Covalent for applications which allows developers to quickly and easily construct financial solutions, DeFi leverages “Lego-like” building blocks from multiple projects.

Also, the “Multiple Blockchain Support” feature which Covalent provides will allow the entire data of customers on the DeFi “Lending” and “Borrowing” area to be indexed. This will make it easy for the customers to send or deposit crypto funds.

Covalent houses features which addresses allot of blockchain challenges, I believe if this few feature stated above is initiated into the DeFi Lending service, it will create more usability and comfort for both lenders and borrowers

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Asian Ubuo

I am a young digital crypto enthusiast, graphics designer and digital marketer...