DEFI ( Introduction and Defi lego)
Defi ( Decentralised finance) are all financial institution applications set up to eradicate financial intermediaries totally. Decentralized finance is the newest financial technology that challenges the traditional banking system, which gives the opportunity to individuals with internet access ( Crypto traders) to access to trade, borrow and lend using software that verifies and records financial activities in a distributed financial database.
Defi empowers individuals via peer-to-peer digital exchange. Defi uses a well-secured protocol and connectivity, software, and hardware advancement.
Decentralized finance uses the Blockchain technology used by cryptocurrency. It uses a very secure database called dApp with varying functionalities that allow users to have more control over their wallet and trading service. There are lots of defi coin to invest in like Tamadogy, chainlink, battle infinity, XRP, Tezos, Avalanche, maker, loopring, compound, pancake swap, uniswap, terra classic, and a lot more…
The total value Locked (TVL) Is the total sum of specific cryptocurrencies deposited, loaned, and staked in smart contracts for financial activities across all of defi.
Let’s talk about Defi Lego
There is a continuous development of new financial opportunities in the defi space. Defi Legos are built for borrowing, staking, and lending. Defi offers users various financial instruments like houbi earn, you can easily deposit some crypto and earn interest depending on the volume of your deposit, its aim is to help users achieve their goals of earning more. Once there is a new tool in the defi space, we have a new Lego that can be used to offer new services in digital finance. This new protocol offers a more effective and efficient service and paves the way to make for more opportunities to earn more.
Houbi global, one of the world’s leading digital asset exchanges is very interested in it users’ aim to earn more through primepool, a defi mining platform that allows users to take part in asset locking and earning more defi tokens.
Opportunities with Defi;
1. Access to funds globally: Borrow without collateral, you can borrow using peer-to-peer or pool based
2. Transfer of currencies around the globe: you can transfer money within a minute without location restrictions.
3. Stablecoin: Defi makes use of stablecoin because it is global, the demand for stable cion is high without the volatility and well secured by cryptography, transactions can not be forged with stablecoins.
4. Earning through lending: you can earn and start saving up through lending to get interest.
The benefit of using defi
Peer-to-peer financial transactions which totally eradicate the involvement of third party in the financial contract. It allows the transfer of capital all over the globe 🌍 with Ethereum.
Defi platforms and protocols mitigate lots of risks that affect centralized financial sectors like bankruptcy. Also, the defi network allows the two party involved in the transaction to negotiate the interest rate and lower fees.
Defi is accessible, there is no location restriction as far as you have access to the internet.24/7, 365 days in year access.
Defi is well secured ..
Conclusion
Defi has greatly helped to eliminate the long time, tiring protocol with collaterals, third party involvement and high fees charged by other financial institutes for their services. Defi is accessible to anyone with an internet connection. All you need is to open a secured digital wallet.
Always get adequate and updated knowledge before making any financial decisions. cryptocurrency is prone to high volatility, risk of fraud and scams… Be wise.
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MEET THE AUTHOUR:
Olaniyan Deborah Faith, a Crypto content writer.
