What is DeFi (decentralized finance)?

In recent years, the digital currency market has flourished and is growing at an exponential rate. With the prosperity of other markets, one of them is the well-known decentralized financial DeFi.

DeFi integrates blockchain technology with financial services, which may raise some questions: Isn’t this the real digital currency? The answer is: yes. But it’s more than that. DeFi is the software on the Umbrella system, so there is no need for middlemen to provide services. It includes a series of projects built on the blockchain network, and these projects provide more than just a digital currency. Like other digital currencies, DeFi is based on blockchain technology, but unlike other digital currencies, it can be applied to more complex financial cases. Become a special type of decentralized ecosystem. The main difference is that it also invites investors to use financial products through an incentive mechanism. It even created alternatives to savings and checking accounts, loans, asset transactions, insurance and other traditional financial services.

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What are Dapps ?

Dapps, that is, decentralized applications, are programs that run in a decentralized network that implements defi. As the name suggests, they do not accept any central authority supervision. The use function of the application does not depend on external permissions, but depends on the code. Interestingly, most of them do not require human intervention, because the integration of more advanced smart contracts can simplify business systems.

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What are the advantages of DeFi?

The DeFi ecosystem is spread across all financial sectors around the world. Let us understand the reasons for its popularity.

Open and safe code
Open source code is more secure than any private password and can make platform users more confident in asset security. Anyone can ensure its functionality and safety. It allows anyone to see that in the context of the platform, there is no code that can attack them, which makes it a core feature of DeFi Dapps.
Transparency
Traditional banks are considering opening up the banking system. But DeFi is already far ahead because it is built on the “open financial model.” DeFi runs on a public blockchain and makes all transactions and other activities public. Since each account is anonymous, it will not infringe on privacy.
Can be accessed anywhere in the world
To become a member of the DeFi community, all you need is a mobile phone with Ethernet capable of surfing the Internet. No matter where you are, you can register on the defi platform. This successfully solved the geographical limitations of traditional banks and solved the problem that people living in remote areas cannot easily open accounts. This is the first time in history that 100% of the world’s population has access to financial services, no longer subject to geographic restrictions.
No approval required
Unlike traditional banks, DeFi applications can be developed by anyone in the world, and all community services are more open without the need for a third party. Due to the community member management platform, users will not have problems such as transaction failure or account lockout. This is a free-flowing platform where investment users can be simple and practical. At the same time, due to the suitability of the blockchain protocol, security and transparency can also be guaranteed.
Interoperable
As a key component, the DeFi platform provides interoperability for users. This means that you can freely interact with the performance of other platforms, especially when they are part of the same blockchain. This seamless integration allows users to store their DeFi gold products, thereby exerting greater creativity in the design of the digital economy.
Allow flexible lending
The eFi market can be flexible in operation and provide better functions through the integration of third-party platforms. In addition, if you think that existing functions need to be improved, you can build your own interface at any time.

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DeFi tokens issued in 2021

Today, the DeFi industry has become the top ecosystem for high-value tokens. These assets are enforcing favorable market trends, bringing high profits to all those who have the right investment certificate strategy. The following are the most popular DeFi tokens this year.

Chainlink (LINK)
Chainlink, which has been rising steadily since last year, is currently the No. 1 DeFi token by market capitalization. It is an Oracle company that facilitates the input and output of complex smart contracts that can be connected to data, events, and payments in the real world.
Uniswap (UNI)
UNI is a very representative Ethereum token that has grown substantially in recent months. UNI is a relatively new type of automated liquidity program for trading parameters. In order to obtain UNI, it is necessary to provide liquidity in the selected pool.
DOT
DOT token is the token of Polkadot. Users participate in government-related decisions such as proposals and voting. In addition, users can authorize tokens. You can distribute tickets to other users and get the percentage of new DOT generated according to the agreement.
SUSHI
SUSHI is a digital currency provided by SushiSwap software. SUSHI is used as a compensation payment for liquidity mining. Allow users to participate in the government platform, and generate a portion of the commission in accordance with the dealer agreement.
FIL
FIL is the token of Filecoin. Smart contracts called File contracts can be signed to support users to program storage services. FIL token is a digital currency that provides a reliable decentralized cloud storage algorithm and unlocks unused storage space in computers all over the world.
Aave (AAVE)
Aave is the leader in loan decentralization, providing loans after collecting digital currency interest from customers. The entire protocol uses no middlemen, and the process requires tokens called LEND.
Synthetix (SNX)
Synthetix is ​​a derivative that allows the issuance of synthetic assets to a central exchange. The agreement uses two tokens. One is the basic style SNX for backing up Synthetix assets. The second one is Ether (ETH), which has passed the 3-month test and is used as a guarantee in the synthesis system.

The DeFi market and tokens play an extremely important role. Set new standards for the global economy and lead the trend of financial democracy.

If you want to be part of the DeFi ecosystem and are ready to invest, then Wisebitcoin can help you. Wisebitcoin provides the main DeFi digital currency, which combines rich liquidity and scalability, an affinity platform and great development potential. The finance and investment department provides services to users with a sense of mission to build blockchain technology.

If you want to join Wisebitcoin and experience fast, simple and convenient services, please log in to Wisebitcoin. Wisebitcoin is happy to provide more innovative and modern financial solutions to help more users.

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