In DeFi lending protocols, lenders earn profits from borrowers who use their liquidity. The amount of interest received by lenders is directly linked to the borrowing rate, meaning higher profits for lenders can translate to higher expenses for borrowers. However, the use of DeFi lending with mandatory over-collateralization is still limited, and increasing the interest rate for borrowers may discourage borrowing, leading to lower profits for lenders.
Primex takes a different approach by providing liquidity only for a specific use - trading on DEXs with leverage, which leads to higher liquidity utilization and generates higher returns for Lenders compared to lending protocols with full or over-collateralization.
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To start earning with Primex as a Lender, please refer to How to earn as a Lender.