How does Brainiac work?
You can think of Brainiac Finance working similar to a bank. You can deposit various cryptocurrencies to earn annual interest on your deposits. Similar to how you earn interest when depositing money into a savings account with a traditional bank. However, the key difference is that Brainiac Finance never has custody over your cryptocurrency deposits, you do. Essentially, you’re interacting with a smart contract and not with a company or person. This part is important to understand since this means that no central authority can take your funds away from you.
Brainiac Finance leverages verified smart contracts for all lending and borrowing of popular cryptocurrencies. As a result, you do not need have a Brainiac login, but instead use a wallet with Web3 support such as MetaMask.
Since Brainiac Finance is a DeFi platform, it doesn’t have to follow any restricting rules that are found in traditional lending environments. Brainiac Markets are always on, meaning you can lend or borrow crypto assets in seconds without any intervention or permission from the company itself. Furthermore, you will find that the interest rates are usually higher than any savings account since the APR (Annual Percentage Rate) is bolstered by farming the platform’s native governance token BRAIN. The platform distributes BRAIN tokens to users supplying liquidity, borrowing assets, or minting BAI stablecoins.
To summarize quickly, you can even get paid for taking out a loan!