The cryptocurrency space is still largely dominated by the original king of crypto in , but a few newer entrants have carved out strong followings of their own. Among them is Chainlink (LINK), which had a monster year in 2020, skyrocketing in price by over 500%.
Now, investors in have a new way to earn interest on their holdings.
— BlockFi (@BlockFi) March 1, 2021
BlockFi, founded in 2017, offers interest of up to 8.6% APY on different cryptocurrencies including Bitcoin, stablecoins such as (USDT) and Centre’s . , and , as well as deposits of dollar-pegged
To generate yields, BlockFi lends out deposited assets to business clients and other institutional-grade investors. BlockFi also manages an over-the-counter Bitcoin trading desk and recently filed documents with the SEC to launch a Bitcoin Trust similar to existing offerings from leading digital asset management firm .
Chainlink provides a network of “oracles,” or external data providers supplying information on asset prices and other variables to smart contracts, automated blocks of code that run using blockchain networks like Ethereum. Smart contracts rely on oracles to provide data about off-chain events, making Chainlink (and competing oracle providers like API3) a critical part of operating decentralized finance protocols.
Decentralized finance, also known as , represents a collection of protocols designed to replace the products and services typically offered by banks and other financial institutions with blockchain-based equivalents. DeFi users can get loans, swap assets, and earn interest on crypto deposits, all without relying on a centralized third-party to facilitate the activity.
Both BlockFi and Chainlink experienced explosive growth in 2020, with BlockFi’s assets under management increasing 1,500% to more than $4 billion. On top of the 500% jump that LINK enjoyed last year, Chainlink prices have continued to go up in 2021: the asset is up 140% since January 1.
News Source from Decrypt.co