For the first time ever, the total value of all assets currently deposited in decentralized finance has reached 1 billion dollars:https://ift.tt/2H7d96A WTF is defi?Decentralized Finance (DeFi) is the umbrella term used to describe dozens of decentralized financial protocols that run without intermediaries on the blockchain. These protocols can be used by anyone, and include services such as lending, derivative markets, high interest earning savings accounts, decentralized exchanges, and many more. These protocols are used by interacting with smart contracts.The 3 biggest defi protocols are:MakerMaker provides the Dai stablecoin, which is a decentralized cryptocurrency stabilized against the value of the US dollar. Unlike other popular stablecoins whose value are backed directly by USD, DAI is backed by crypto collaterals that can be viewed publicly, on the Ethereum blockchain.More info about MakerSynthetixSynthetix provides a derivatives market through its "Synths".Synths are tokens that provide exposure to assets such as gold, Bitcoin, U.S. Dollars, TESLA, and AAPL within the Ethereum blockchain.More info about SynthetixCompoundCompound is an algorithmic, autonomous interest rate protocol.For example, Compound currently has $30,000,000 of DAI deposited that benefit from a 8.81% annual interest rate. The compound protocol runs on the Ethereum blockchain.More info about Compound1 billion dollars have been deposited, so what?It took just two years for the total value deposited in defi to reach 1 billion dollars.You might think that it's just another imaginary threshold, but it also means something way more significant:Despite the bear market, the blockchain technology has managed to successfully grow a new major use case. A use case of a kind never seen before, that appeared at a time at which it's more than needed:While many countries have started to provide negative interest rates, defi can offer high interest rates.While more and more personal information is required by financial institutions to invest, defi leverages blockchain to allow an unlimited anonymous access to similar if not better services.Pay attention, because defi is booming.
Submitted February 09, 2020 at 01:11AM
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