Skip to main content

DECENTRALIZED FINANCE; WHAT IS IT? – Part 1


 Image result for Decentralized Finance  

 More than ten years gone down the lane, the block chain industry is yet to disappoint with it ever changing nature. Since the early adoption, the industry has since recorded a slow but progressive changes with the latest being the Decentralized Finance also referred to as Defi.

What Decentralized Finance?

‘’DeFi is essentially just conventional financial tools built on a blockchain’’-blocknomi. These were previously built on the Ethereum network, but there is a growing number of players in this space such as Waves and Cosmos.

‘’ They are mostly predicated on open-source protocols or modular frameworks for creating and issuing digital assets and are designed to confer notable advantages of operating on a public blockchain like censorship-resistance and improved access to financial services’’

Example of a growing number of Defi Dapps on the waves platform is the Neutrino token - https://beta.neutrino.at/neutrino/usd-n.
  
  Decentralised Finance instrument offers better investment opportunities than the traditional financial instruments available out there. Defi offers personalised secure access to interest on investment. It decentralised nature also ensures traditional centralised hackers do not unleash similar threats the decentralised platforms. Where as traditional finance platforms get to lose billions of dollars annually to hackers, decentralised platform are best suited to limit such attackers if they ever happen to only such individual or attacking point.

Examples of Defi applications;

Open Lending Protocols;
-       MarkerDAO
-       Nexo
-       Lombardini

Issuance Platforms and Investing;
-       tZERO
-       Neutrino (algorithmic stable coins)
-       Polymer

Comments

Popular posts from this blog

INVESMENT OPTIONS IN THE DIGITAL ASSETS/CRYPTOCURRENCY SPACE - Part 1

•  SMART CONTRACTS; Ethereum, waves, ontology, algorand, cosmos, polkadot, cardano etc. •  TOKENS; xlm, xrp, Bitcoin Cash(BCH), etc •  DEFIS; Terra, Nexo, USDN, DAI, •  Stable Coin and Algorithmic Stable coins; USDT, USDC, USDN, etc. KEY CONSIDERATIONS IN MAKING A CHOICE •  Asset Fundamentals •  Rate of adoption •  Products and services  •  Partnerships •  Incentives TYPES OF INVESTMENT OPTIONS Passive income. Example, DAI, USDN, Waves, Ethereum, Nexo, Terra, Sia etc Buy and Hold aka Hodler: Bitcoin, Ethereum, Litecoin, XLM, XRP etc Trading (Scalping, swing, day and Position Trades). Bitcoin,Litcoin, Ethereum, BCH, etc Loans: Nexo etc TYPES OF INVESMENT – PASSIVE INCOME •  PASSIVE INCOME: Algorithmic stable coins can provide daily in system referred to as Decentralized Finance Eco system (DEFIs). Examples; USDN implement a typical CBN policy for T-bills and Bonds. By implement such monetary policy, investors are presented with a very simple, easy way to invest and make daily rewards on