DeFi app overview: How to navigate crypto's new finance wave

Their indisputable advantages are high-interest deposit rates, which can bring holders massive profits in just a few months, and instant loans that can be borrowed with no documents or Know Your Customer verification.

How easy is it to take out collateralized loans with MakerDAO? To borrow assets, a user just needs to have an active crypto wallet from MetaMask, Ledger, Coinbase, Trezor, WalletConnect or D'cent and a balance of at least $40. But the total amount of the loan is always limited by the collateralization ratio of 150%. That means it's not possible to borrow more than 66% of the collateral.

Aave: Unsecured flash loansAave allows users to take out loans for cryptocurrency collateral and offer up crypto for interest.

Aave has a choice of 19 coins and offers flash loans without any collateral, but it's necessary to return the loan and pay interest in the same block.

Collateralized loans don't seem to be as attractive as flash ones, given the comparatively low collateralization ratio of 50%-75%, which is two to four times lower than the ratios offered by other DeFi lending apps.

To get the most out of the platform, users often make deposits, take out loans and put them back as deposits.

Users can take out loans for all of the supported collateralized coins, except for Tether, when choosing deposit rates.

Some restrictions may also apply to loans with limits on amounts of credited funds - for instance, no more than 40% of funds in cryptocurrencies for Bitcoin loans.

The platform itself provides only cryptocurrency trading services, and users will have to resort to the connected MakerDAO, Aave, Compound and Curve services to take loans or make deposits.

Despite being an aggregator, Yearn has a solid lineup of products, offering all-in-one services for working with crypto in terms of trading, loans and even insurance.