HypaSwap (HYPA) is one platform that was created with the community in mind. Among other tokens such as Shiba Inu and Polkadot, HypaSwap may boast of the best community, which should help the new platform gain a lot of new users, and that in turn could be a great addition to add to your portfolio this year.
The HypaSwap story
HypaSwap (HYPA) is a DeFi platform built on the Ethereum network; it is a decentralised, non-custodial liquidity protocol that enables lenders and borrowers to exchange assets with the use of a liquidity pool.
The platform’s lenders can lend their assets to HypaSwap and earn interest from their service to the platform by locking their assets for them to be used in the liquidity pool. Borrowers then borrow from the locked assets in the liquidity pool in exchange for their collateral.
HypaSwap protocol will create a liquidity pool consisting of multiple cryptocurrencies such as ETH and BNB; upon every transaction, a derivative is created upon the deposited amount on a 1:1 valuation that can be stored, traded, or redeemed, which means even if the original asset is still locked in the liquidity pool, the value is still free with the derivative token.
How to earn through lending on HypaSwap (HYPA)
Two ways are lenders on the HypaSwap ecosystem through interest rate and HypaSwap incentives. Since lending money to the liquidity pool is the first step of DeFi, the platform always ensures that the lenders are kept risk-free with a loan repayment that is secure with promised returns.
Whenever a borrower pays off their loan with the expected interest rate, the amount is distributed between the lenders whose money was involved in the loan, and they also get their share of the interest rate. However, if the borrowers fail to pay, the collateral is liquidated to pay off the lenders.
Also, since lending keeps the protocol afloat, lenders are incentivised with HypaSwap incentives to make sure they keep lending and lock in their assets for longer periods.
How borrowing works on HypaSwap
In the case of borrowing on HypaSwap, the borrowers take money out of the liquidity pool in exchange for their collateral. Once they repay their loan, their collateral is freed. Unlike traditional banking, their collateral must be bigger. For HypaSwap, the amount they are required to use is 150% of the borrowed amount.
If a borrower fails to repay their loan to the protocol, their collateral will be liquidated and distributed among the lenders.
How will HypaSwap be a better platform?
HypaSwap will take an aggressive approach to its innovation and ensure that all shortcomings and risks associated with lending and borrowing platforms are covered on their platform.
HypaSwap is a platform that the community will truly govern. The governance will remain with the community, with no chance of team interference. They will ensure that the team members receive only a small portion of the $HYPA tokens during token allocation.
Why Shiba Inu (SHIB) and Polkadot (DOT) are leaders in the market
Polkadot (DOT) is an open-source platform and cryptocurrency. It is one known for providing interconnectivity between blockchains by allowing independent chains to safely carry out the exchange of messages and perform transactions without needing to include a third party.
An anonymous source created Shiba Inu; it is known as a decentralised cryptocurrency that was created two years ago.
The HypaSwap community will continue to experience growth as people will find themselves more drawn to community-governed platforms for the safety it offers, and potentially this could be the crypto that will ignite your wallets by the end of 2022.
Visit Website: https://hypaswap.io/