5 Alternatives to BlockFi Worth Exploring

BlockFi is one of the multiple crypto lenders finding itself in an awkward and unfavourable position. The company has cut 20% of its employees due to macroeconomic conditions and is caught up in the Three Arrows Capital bankruptcy issue. Therefore, exploring alternative options for lending and DeFi purposes is essential, but there are good options. 

The BlockFi Rough Patch Continues

One must admit that 2022 has not been too kind to BlockFi. The popular crypto lending platform struck a deal with the SEC to pay $100 million in penalties in February of this year. Additionally, the company had to lay off up to 20% of its employees due to the bearish crypto market and lack of any optimistic future outlook. Finally, this month, the company got caught up in the Three Arrows Capital issue, forcing 3AC to file for bankruptcy. 

As a company in need of fresh capital, BlockFI may very well be acquired by another company. Rumours indicate FTX has a keen interest in the company, although it would be at a fraction of its 2021 valuation. In addition, Ledn, another crypto platform, has offered a lifeline worth up to $400 million, although there is no agreement between the parties yet.

This leads to much speculation and unease among DeFi and lending enthusiasts. Now is an excellent time to explore alternative providers and platforms, as BlockFi has lost most of its appeal and trust. 

Nexo

As one of the premier crypto lending platforms, Nexo continues to build strong momentum. The platform is home to over 2 million users across dozens of countries. Users can engage in lending opportunities with appealing returns, although they can exit their positions at any time without incurring extra fees. Flexibility is a crucial pillar of decentralized finance and something more providers have begun to support. 

Moreover, Nexo has insurance on its custodial assets, ensuring customers are protected. Daily payouts for yields also create a transparent approach to accountability. Finally, for those looking to borrow money, Nexo can extend a loan for up to $2 million without credit checks. That can create substantial demand for loans, giving users more options to earn passive revenue on their idle crypto assets. 

Cake DeFi

The most appealing competitor to BlockFi is Cake DeFi, a platform that lets users retain control and provides a seamless and transparent user experience. Moreover, the platform provides users with various options to create passive revenue streams, including lending, staking, and liquidity mining. Diversifying one’s portfolio is crucial in cryptocurrency, including how one attempts to farm yield. 

Another reason to explore Cake DeFi is its growing support for fiat currencies and cryptocurrencies. It is a good platform to onboard new users into DeFi and lending, yet it also provides the tools for existing crypto users to maximize their potential rewards. More importantly, users can withdraw funds from positions and the platform anytime, empowering Cake DeFi users throughout their lending and DeFi journey. 

Crypto.com

Another popular option to explore lending and DeFi products and services is Crypto.com. It is one of the best-known brands in decentralized finance and a trusted company with a growing suite of products and services. Crypto.com supports dozens of cryptocurrencies and has a user base of several million people. Interest yields can be as high as 14% APY, with earnings calculated every day.

To build a successful lending platform, Crypto.com keeps the interest fees for borrowers relatively low. As a result, a yearly rate of 8.5% is below the industry average, making borrowing funds through Crypto.com rather appealing, driving demand for crypto assets, and improving earnings for those engaged in lending. 

Binance

Cryptocurrency exchanges have begun exploring new opportunities in DeFi and lending over the years Binance, the leading trading platform, offers users an Earn feature where they can earn savings and staking yields daily. Additionally, users can compound their earnings to maximize their potential profit and further build their cryptocurrency portfolio.

Notable options under the Binance Earn banner include Flexible Savings, Launchpool, BNB Vault, etc. There are two types of earnings: Guaranteed and High Yield, catering to holders of stablecoins and more volatile crypto assets. Funds are kept in cold storage, and Binance has a stellar reputation, providing users with peace of mind. 

HodlNaut

The HodlNaut platform makes for an appealing BlockFi alternative for users looking to earn interest on their crypto assets. Users can explore fairly high APY returns across all top assets, even if the DAI rates are lower than BlockFi’s. Moreover, HodlNaut supports fewer currencies, but it has no lock-in periods or minimum deposit, ensuring users control their funds at all times. 

The combination of high interests without compromising user control is a big selling point. Moreover, everything is presented through an intuitive user interface catering to both novice and experienced users alike. Additionally, HodlNaut complies with Singapore’s financial regulations and stores funds in cold wallets. Withdrawals are only possible to approved addresses. Furthermore, users can purchase additional insurance through Nexus Mutual to gain more peace of mind.