10 reasons to invest in DeFi

Is Decentralized Finance the future of finance?

The Covid-19 caused an economic shock three times greater than the financial crisis of 2008. It has thus been shown that traditional financial systems are very vulnerable to global shocks, while cryptocurrency companies have emerged stronger.

Staking, farming, Energyfi ...: 10 reasons to invest in DeFi
10 reasons to invest in DeFi

Some believe that the earlier we invest in DeFi, the famous decentralized finance, the better ... here are the 10 aspects that encourage us to look into this growing phenomenon:

The DeFi wave is barely in its infancy

So there is a huge wiggle room for these protocols in real life and, therefore, a great potential for increasing values. At the time of writing, the total value stuck in DeFi is almost $ 40 billion. At the start of 2020 it was around “only” 1 billion USD. Investments have therefore been multiplied by 40 in the space of a year.

DeFi democratizes finance

It facilitates easy and efficient access to financial services for everyone. Based on smart contracts, it allows users to trade and trade without middleman through decentralized exchanges (DEX).

DeFi and staking

To do staking, you deposit governance or large-cap cryptocurrencies. This guarantees the platform that you are not going to sell them and the platform will reward you for the duration of the staking.

DeFi and farming

Farming consists of bringing a pair of liquidities to a pool by making cryptocurrencies available on a DEX, in order to facilitate exchanges. The latter pays you with his token, which you can resell, to add more liquidity to the pool. You can exit at any time and the platform will stop paying out the rewards.

Towards a greener DeFi with Energyfi

Energyfi designs a green and profitable decentralized finance by providing a full set of DeFi features on the Energy Web, Avax, Near and Bsc networks, while accelerating their adoption.

The goal is to solve the problems of the current DeFi by reducing transaction costs to almost zero, as well as its carbon footprint.

Decentralized finance operations "without permission"

In the traditional financial system, permission from an intermediary is required to carry out a financial transaction or withdraw an amount from one's own bank account. DeFi users can interact without the permission of a third party.

DeFi vs human error and mismanagement

Financial crises are generally due to mismanagement by central banks (CBs) and third-party intermediaries (ITP). On DeFi, your cryptocurrencies are safe and thanks to smart contracts, human errors are eliminated from the process.

NFTs in DeFi

NFTs are now used to take out loans. Thanks to the composable nature of Ethereum's protocols, some developers have taken this concept a step further by offering a whole new vision: NFTs. This is the NFTfi protocol, which gives its users the possibility of borrowing against the collateral of their valiant NFTs.

Real estate integrates DeFi

Many real estate transactions have already taken place using blockchain. Transactions are carried out using a "smart contract", in which the details of the bill of sale are stored permanently and cannot be changed. Rental management should also move to decentralized blockchain applications.

The Defi is safer

The Covid-19 caused an economic shock three times greater than the financial crisis of 2008. It has thus been shown that traditional financial systems are very vulnerable to global shocks, while cryptocurrency companies have emerged stronger.

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