play with Defi borrow/lend system

Posted by Howard on March 22, 2020

After doing some research in the Defi borrow and lend system, I was eager to take an action. This website compares different product with their APR ( Annual Percentage Rate ) with different asset:


We can see “DAI” which is the stable coin or debt asset in MakerDao system, has the highest rate, and dYdX tops them all. So I picked up this to do further investigation.

Then we should connnect to ETH wallet, for now, it supports only a few wallet, not including scatter, which is my favorite, but does support MetaMask which is almost a standard ETH wallet.


I have a few ETH which I bought before the crash, I can see the rate for ETH is too low, if I want to get a higher rate, I need to exchange it for DAI, I have two options, one is to deposit my ETH to MakerDao as a collateral and borrow DAI, another is to sell my ETH for DAI in some cryptocurrency exchange such as Binance. I am not to take any of these options, I prefer to keep my ETH for reasons:

  1. after the crypto market crash, this is a dip price for many cryptocurrencies, it will be stupid to sell them in exchange for stable coins;
  2. we are in the financial crisis as well as biochemical crisis, all the government has to print out more cash to save their economy, this is a good chance for cryptocurrency to rise up to take the place of fiat currency.

I won’t sell out any ETH, Steem or EOS in exchange of fiat or stable coin at this time.

Another thing I can see inter-chain technology is still immature, as I can see in those Defi borrow and lend system, they are still playing around in ETH ecosystem. WBTC is wrapped BTC, USDC, DAI, TUSD, SUSD, MKR, all are smart contract based token in ETH blockchain.

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