Best DeFi Lending Platforms

Which crypto lending and borrowing platforms do folks recommend? Looking for one that has reasonable rates and excellent security measures.

For example, Nexo.io is a well-known crypto lending service that secures crypto assets with BitGo and has $100 million insurance with Lloyd’s of London. However, it scored an ‘F’ from Mozilla’s Observatory test (https://observatory.mozilla.org/).

I’m using Nexo and can highly recommend it.

@mattprime, do you have any concern about Nexo’s failed security rating on the Mozilla Observatory test (referenced in my post above)?

On the other hand Nexo did A and A+ security rating by some other organizations, you can see this by looking at tab “Third-party test” on the same page where Mozzila Observatory test is. As I see it security ratings are very individual for different security organizations with different stress points.

What makes my mind more relaxed is that they are secured with cold wallets from BitGo and also have insurance with Lloyd’s. Sure is not optimal that Nexo is basically centralized entity, but they are basically owned by Credissimo, which has a great and long record track as a leading European FinTech Group founded in 2007.

Always there are good and bad things, good one is surely that they are in between very few projects in crypto creating fantastic revenue and they are dividing part of it to us investors as dividens.

@mattprime, I agree that Nexo benefits from a good revenue model and investor dividends. However, I asked Nexo about their $100 million insurance coverage, and Nexo would not directly disclose to me their total assets in custody. Check https://nexostatistics.com. It indicates that Nexo already lent over $100 million in USDT alone. That would indicate that it likely has over $100 million in custody and any new assets would not be covered by insurance. Your thoughts on this?

By the way, have you found an affordable way to purchase Nexo tokens?
I am interested since Nexo gives a significant discount on its interest rate for users who pay with the Nexo token, as well as a generous dividend. However, Nexo website offers dividend token purchase via Changelly but does not recommend this due to high fees!

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This is very good point, yes indeed they have lent more than $100 million in USDT alone and I think much more was lent in fiat. Because of that I find it very important that they have most of their collateral crypto asset stored in BitGo cold wallets, so basically is hack there very difficult or almost impossible. Basically I think is insurance for hot wallets, which hold much less assets than cold wallets. Also when hack happens, hackers don’t steal everything but only a proportion of complete crpyto asset, which was vulnerable to some bug in code or some other vulnerability.

For purchasing of Nexo tokens I find it the best to go to Huobi global. I also used Changelly, but it happened to me that I experienced strong slippage and paid much more for NEXO than anticipated.

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