Stellar (XLM) is a blockchain network focused on facilitating cross-border transactions between any pair of currencies. Its native cryptocurrency is Lumens (XLM). Stellar aims to make global financial systems interoperable and efficient, focusing on accessibility for unbanked populations. Its consensus mechanism is unique, utilizing the Stellar Consensus Protocol (SCP) for faster and cheaper transactions.
Stellar was co-founded in 2014 by Jed McCaleb, a well-known figure in the cryptocurrency world, and Joyce Kim. McCaleb is also the co-founder of Ripple and the creator of the Mt. Gox exchange.
Stellar (XLM) and Ripple (XRP) share a common heritage through Jed McCaleb but serve different purposes. Ripple focuses on facilitating transactions for banks and financial institutions, while Stellar targets individual users and unbanked populations. Ripple uses a network of trusted nodes, whereas Stellar employs a more decentralized approach with its unique consensus protocol.
Lending Stellar (XLM) involves depositing XLM into a DeFi platform that supports lending services. Lenders earn interest on their deposited XLM, with rates determined by supply and demand on the platform. This offers a way to generate passive income from XLM holdings.
Apart from Stellar (XLM), you can lend major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), as well as stablecoins such as USD Coin (USDC), Tether (USDT), and DAI. DeFi platforms offer different interest rates and terms for these cryptocurrencies.
