A Fantom-based money market platform called Granary Finance tweeted on October 14 that it was reducing fees by over 90%. This action will result in lenders receiving the entire interest from platform transactions.
Attention farmers! Our big news is here.
Our platforms fees has been reduced by 90%
What does this mean? All of the interest will be going to lenders.
Enjoy your yields! Because we wont be 😜 pic.twitter.com/zzd3UdwUxW
— The Granary 🌾 (@GranaryFinance) October 14, 2022
With the level of competition in the cryptocurrency market rising, many DeFi protocols are taking the initiative to introduce appealing features.
Granary Finance has enhanced its functionality, and as a result, more people will use its services. Both lenders and borrowers benefit from the reduction in fees. Transaction fees do not drive away borrowers, and lenders make more money on loans.
How does the platform operate?
Granary Finance is a borrowing and lending liquidity market. Crypto lenders offer yields on crypto deposits by lending them at interest.
There is no limit on the maximum deposit amount. Depositors must be cautious when making small deposits, as the transaction fees may be greater than anticipated profits. Additionally, depositors can choose not to have their assets utilized as collaterals and are entitled to the removal of such.
Users of the platform may borrow money based on how much they have placed and the obtainable liquidity. The same cryptocurrency used for borrowing is also used for repayment.
The borrowing rate determines the interest rate you pay when borrowing assets, and there is a limit to the sum that can be borrowed. A benchmark for borrowing is the “health rating.” You lose access to deposits when this rating is poor or when there isn’t adequate liquidity.
Users’ interest in a specific asset is maintained through the availability of borrowing. They can get functional capital without selling up their assets.
Aside from advantages encouraging increased adoption, Granary has given the ecosystem fascinating and lucrative passive income potential. The fact that Granary accomplished this in such a brief amount of time is quite intriguing.
