Xend Finance, the blockchain-based financial services platform based out of Africa is adopting a unique approach to deliver an enhanced range of benefits to all its users. The platform, through its proprietary algorithm, is leveraging various DeFi protocols to offer multi-level interest on user savings, thus differentiating itself as a value-added financial service.
Apart from its lending and investing functionalities, Xend Finance allows its users to save in stable currencies without being worried about any kind of fluctuation and devaluation. On top of this, the platform enables users to earn a two-layered interest on their savings amount.
How Does it Work?
Xend Finance’s proprietary algorithm invests the users’ savings in certain DeFi lending protocols. It leverages and optimizes these lending protocols to fetch an impressive Annual Percentage Yield (APY) for its users – up to 15% as compared to the traditional standard of 1-2%. Xend Finance distributes the interest earned from these lending protocols among its users as the first level of interest.
The uniqueness of this platform lies in the fact that, beyond the first level of interest, it provides an opportunity for users to earn further interest on their savings. Here is how it works. When users save their funds on the Xend Finance protocol using a varied range of available strategies like Individual Fixed Savings, ESUSU, and Cooperative Savings, they earn $XEND tokens in the form of rewards. This acts as the second level of interest.
To execute this process, Xend Finance leverages DeFi lending protocols like Compound, Aave, Fulcrum, dYdX, Venus, ForTube, DeFi Dollar, Yearn Finance, among others. The platform’s smart contract algorithm lends the users’ savings to these interest-bearing lending protocols. The interest generated from these protocols is then directed towards users (individuals or groups) depending on their deposit amount and the savings strategy they have used.
“At Xend Finance, our objective is to provide maximum opportunities for our users to multiply their savings. We understand that this can contribute a great deal towards delivering financial stability to people residing in underserved economies, and our goal is to onboard as many users as possible by leveraging our proprietary blockchain-based technology” – Ugochukwu Aronu, Co-Founder and CEO
Along with its unique concept of multi-level interest on savings amount, Xend Finance also offers several profitable avenues for its users on the platform.
Xend Finance Targets Global Audience but with Focus in Emerging Markets
The advent of decentralized finance largely reaffirms the capability of blockchain technology to help bridge the financial gap amongst people of all races. Due to the dearth of crypto-based developers in some regions, particularly Africa, there happens to be a natural selection for these DeFi offerings that open access to these new financial offerings.
Africa has a good track record for embracing blockchain and digital currency innovations. Nigeria is one of the largest P2P marketplaces in the world, with a number of innovative homegrown platforms like Xend Finance emerging to serve users across the globe. While these facts remain true, Africans are still lagging behind in both traditional financing and the embrace of DeFi offerings.
Approximately 350 million African adults are unbanked and choose to explore financial offerings through community cooperatives. The value of the global cooperatives market is estimated to be worth $20 trillion, and the enormity of the market contributed to what inspired the emergence of the Xend Finance project.
As a Binance and Google Launchpad-backed project, the Xend Finance protocol has the technological and industry backing to bring real financial opportunities to the world’s most underserved population.
About Xend Finance
Xend Finance is a global DeFi platform for credit unions, cooperatives, and their members. It is the first DeFi project based out of Africa and also the first one to be built on the Binance Smart Chain. Moreover, Xend Finance is also the first DeFi-based project for credit unions. It enables entities (individuals, groups, credit unions, cooperatives) to access a global trustless network and save & invest stable currencies in a highly optimized financial ecosystem that offers several rewards and profitable options. Apart from targeting crypto-savvy users, the project’s primary objective is to deliver financial stability to people in underserved economies and help them navigate the inconveniences associated with the constantly fluctuating local currencies.
To know more, please visit Xend Finance.