Lend and Borrow

Lending and Borrowing on Rhombus

This section explains Rhombus' lending protocol in detail.

How does traditional lending work?

Traditional finance (TradFi) loans are neither inclusive nor permissionless. Banks, credit agencies, and other intermediaries handle user data and dictate loan terms, which makes the process slow and selective. Unlike DeFi, where loans can be secured in seconds, getting a substantial loan in TradFi often requires lengthy approval processes.

How is Rhombus different from traditional lending?

Rhombus offers a permissionless, decentralized lending protocol that enables users to lend and borrow without needing approval or disclosing personal information. No matter your financial background or location, you can access lending services with ease.

By simply connecting your wallet, you can deposit collateral and immediately receive a loan without the hassle of paperwork or weeks of waiting for approval.

Benefits of Lending and Borrowing on Rhombus

Rhombus provides more than just lending services — users earn rewards for both supplying and borrowing crypto assets. You can take advantage of competitive supply and borrow APYs, accumulate ecosystem points, and even gain rewards from partner projects.

Leveraging Market Opportunities with DeFi Loans on Rhombus

In DeFi, maximizing the use of your capital is key to success. With Rhombus, you can use loans to leverage your assets and hold multiple tokens using the same collateral.

For example, if you’re an KAIA investor with confidence in the KAIA ecosystem’s future, you don’t have to just hold your KAIA. Instead, you can deposit it as collateral on Rhombus, borrow USDT, and invest in other tokens within the KAIA ecosystem. Of course, this involves leveraging, which introduces added risk, but with careful management, you can potentially amplify your returns.