Short Note About DeFi — The Future Of Decentralized Finance

Before stepping into DeFi tokens, make sure you know about DeFi. If you don’t know about DeFi, don’t worry.
Let me take you through the DeFi concept. Let’s jump in.
The DeFi concept came to replace the old, inefficient, centralized banking system.

What is DeFi?

DeFi leverages the power of cryptography, decentralization, and blockchain to build a new decentralized financial system. DeFi provides access to financial services like payment, lending, borrowing, and trading in an efficient, fair, decentralized [Without any third-party], open way.

Advantages of DeFi:

Efficient:

All the operations taking place via DeFi are processed immediately regardless of the user’s demographic location. Infact, most of the DeFi protocols can run with minimal human involvement.

Fair:

1. Every service taking place in a DeFi is permissionless. A user with a browser with access to the internet connection can access them easily.
2. There is no need for document verification.
3. Every user in the DeFi network is treated in the same way.
4. Nobody can change the rules of a decentralized system.

Open:

Everyone has the chance to build their own DeFi application and contribute to the DeFi ecosystem. Everything taking place on the DeFi concept is transparent and visible on the blockchain [ trading volume, number of outstanding loans, total debt]. Anyone can get hold of these reports instantly!
All the DeFi applications are mainly run on bitcoin and ethereum. Particularly, ethereum.

What is Ethereum?

Ethereum is a blockchain that runs on smart contracts. Ethereum allows the creation of any financial applications. So, the majority of the DeFi activities take place in Ethereum.

Why go for DeFi?

Recently, DeFi has been experiencing maximum growth from 2020. Some of the stats are below,

Total value locked in DeFi [TVL]:

TVL represents the value of tokens locked in the vast DeFi protocols such as the lending platforms and exchange platforms have grown from one billion [ in April 2020 ] to 32 billion dollars [ in Feb 2021 ].

Trading Volume across Decentralized exchanges [DEX VOLUME]:

Trading volume across the exchanges has grown from 0.5 billion dollars [ in April 2020 ] to 50 billion dollars [ in Jan 2021 ].

Total value settled in Ethereum:

The total value settled in Ethereum is over 1 trillion dollars in 2020, comparatively more than PayPal.After the dominance of DeFi finance applications over the past few years, Based on today’s DeFi market, DeFi tokens are the next big thing in the DeFi concepts.

What are DeFi tokens?

DeFi token or Decentralized Finance token is a token used within a Defi ecosystem. DeFi tokens are available at the core of the decentralized protocol. In today’s market, there are lots of DeFi tokens available. In which many of the tokens, for example, UNI or COMP, hold their voting rights to the corresponding token holders, which allows them to vote for protocol changes within decentralized protocols. DeFi can also be used to reward liquidity providers within their protocols. Here are some of the popular DeFi tokens,

Some of the popular DeFi tokens are below,

1. Aave — AAVE
2. 1inch — 1INCH
3. Chiliz — CHZ
4. Enjin — ENJ
5. THETA
6. BTC
7. Uniswap — UNI
8. ETH
9. SushiSwap SUSHI

If you are looking to transfer your cryptocurrency, add liquidity for DeFi tokens, DecentFi is the best decentralized platform for you. If you are looking to generate passive income, then you can join as an affiliate in DecentFi. You can earn money by referring your friends to the DecentFi platforms. To know more about the DecentFi platform, you can visit the below link,

Link: https://www.decentfi.io/

#defi #ethereum #bitcoin #decentralizedfinance