Decentralized Finance (DeFi) Offerings Clarity : On the public Ethereum blockchain, every transaction is broadcast and verified by other users on the network (this is called miners ). Uniswap clone This level of transparency around transaction data not only enables full data analysis, but also ensures that the full history of transactions is public and accessible to all. It is worth noting that Ethereum and the DeFi protocols running on it are based on Open Source code, thanks to which users have the opportunity to audit, view and develop the code together with the community.
Decentralized Finance (DeFi) Offerings Programmability : Highly programmable smart contracts automate transaction/operation execution and enable the creation of new financial instruments and digital assets.
Decentralized Finance (DeFi) Offers Immutability . Tamper-proof data coordination on a decentralized blockchain architecture increases security and controllability.
Decentralized finance (DeFi) offerings interoperability: The Composable Ethereum network software ensures that DeFi protocols and applications are designed to integrate and complement each other. With DeFi, developers and product teams have the flexibility to build on existing protocols, customize interfaces, and integrate third-party applications.
Decentralized finance (DeFi) does not require permissions, permissions and licenses : Unlike traditional finance, DeFi is defined by open access, without any permissions: anyone with a cryptocurrency wallet and an Internet connection, regardless of geographic location and often without the required minimum amount of funds, you can access Ethereum-based DeFi applications.
Decentralized finance (DeFi) enable monitoring and control: By using Web3 wallets like MetaMask to interface with DeFi financial applications and protocols, market participants always monitor their assets and control any sensitive data. As you can see, it is worth deciding on such an interesting alternative, which works especially for those people who no longer want to allow banks (or other institutions) to control their money.
Decentralized finance: how can it be used?
Loans and credits in DeFi
DeFi offers protocols to access open credit markets. Currently, these are the most popular applications based on decentralized finance. Until now, many companies have been established that in exchange for granting a loan in the form of, for example, BTC, ETH, DAI, USDT, etc., offer a high interest rate (even up to 10%) ! Uniswap clone script The most popular funds that accept crypto capital are: Compound v1 , Compound v2, dYdX, Nexo, CoinList, Crypto.com, Aave, DDEX, Dharma, InstaDApp. BlockFi, Celsius, Hodlnaut.
A tool can be useful when choosing the fund that offers the most attractive interest rates. LoanScan .
Decentralized Capital Markets
Defi gives you a lot of room to trade in the financial markets. Starting with the creation of decentralized exchanges ( DEX ), not requiring trust in the body / management company, to issue and dispose of a wide range of conventional financial instruments.
DAO or Decentralized Autonomous Organizations
DAO is a decentralized and autonomous organization that operates according to transparent rules encoded in the Ethereum blockchain, eliminating the need for a centralized administrative unit. Several popular protocols in the DeFi space, such as Maker and Compound, have launched DAOs for fundraising, financial trade management, and decentralized management. As part of the DAO, it is the users who make all the decisions related to the operation and future of the Organization.
payments
Peer-to-peer payments are the most basic use case in the DeFi space and the entire blockchain ecosystem. Uniswap clone software Blockchain technology is designed in such a way that users can safely and directly exchange cryptocurrencies with each other. DeFi payment solutions create a more open economic system for the population without a bank account and also help large financial institutions improve their market infrastructure.
Stable Coins (Stablecoins)
A stable coin is any cryptocurrency that is pegged to a stable asset, such as traditional currencies, gold, or other cryptocurrencies. Stablecoins were originally developed to reduce the volatile prices of cryptocurrencies and make blockchain a viable payment solution. Currently, they are implemented throughout the DeFi space, incl. on lending platforms, liquidity delivery platforms or decentralized exchanges.
Synthetic
assets Synthetic assets are indirectly related to the topic of stablecoins. These are cryptocurrency assets that provide exposure to other assets such as gold, stocks, fiat currencies, and cryptocurrencies. They are secured by tokens locked in Ethereum-based smart contracts with built-in contracts and incentives. The most popular protocol offering synthetic assets is Synthetix.
Predictive
Markets Blockchain-based predictive markets harness the wisdom of the crowd and allow users to vote and trade value based on the outcomes of events. Market prices thus become indicators of the probability that a given event will occur. Augur, the popular DeFi betting platform, offers markets to predict election results, sports games, economic events, and more.
I make money with yield farming and liquidity mining
Yield farming/liquidity mining involves lending cryptocurrencies and providing liquidity to decentralized exchanges in exchange for (often high) interest and fees. As the main objective of an exchange is liquidity, DEXs try to reward users who want to contribute capital to their platform. Given the amount of competition between investors and high gas prices (fees for processing transactions on the Ethereum network), yield farming is only profitable when a significant amount of money is spent on it.
“Wrapped” technology, for example, “Wrapped Bitcoins (WBTC)”:
“Wrapped” technology allows sending bitcoins to the Ethereum network, thanks to which bitcoin can be used directly in the Ethereum DeFi system. WBTCs allow users to earn interest on the bitcoins they borrow through decentralized lending platforms. The “Wrapped” terminology also refers to other cryptocurrencies such as Monero (WXRM), Binance Coin (WBNB) and many others.
