The decentralized finance segment has turned into an independent direction in 2020. The idea of building a system similar to the classical banking market found great support not only among investors, but also among users of financial services. DeFi projects, in turn, have led to the development of sidechains, parachains and other platforms that solve the issue of scaling. And although the boom in this segment is more like another bubble or an active marketing campaign, it has useful ideas. And in the future they can really replace the traditional banking system.
DeFi in cryptocurrencies – the best articles about Forex of the Fxbotreview blog
- DeFi is a new trend in the cryptocurrency market. The article outlines what decentralized finance is, how they fundamentally differ from cryptocurrency payment systems, what are their prospects and how they can be useful to users and investors. The article also expresses a subjective opinion about the likelihood of whether this direction will be able to compete with analogues of military-technical cooperation.
- DeFi Lending: Benefits and Risks. The review will introduce you to the main areas of DeFi projects – platform products that may be interesting both for earning and for investing. These are instant loans, P2P lending, staking, profitable farming, etc. The advantages and disadvantages of credit products and risks are also considered in detail. This article will help you learn to be more careful in choosing platforms and counterparties for investing.
- “How DeFi Lending Works from a Lender and Borrower Perspective.” The review considers the model of lending on decentralized finance platforms: what is the object of lending, what role does each of the participants in transactions play. How to offer a loan and how to get it. How is a pledge issued and why, in principle, do you need a loan in cryptocurrencies.
- “DeFi Indices – How to Invest in S&P 500 Cryptocurrency Analogs”. This idea is borrowed from the stock market. Cryptocurrency indices are independent startups whose coins are invested in DeFi projects. They differ in the structure and level of risk (for example, they are insured by diversified investments in BTC and ETH). There are indexes investing in indexes. Each investor can get acquainted with the structure of indices and invest in them on DEX exchanges.
- “How Flash Loans Instant Lending Works”. An overview of one of the products of DeFi projects, which is instant loans for arbitrage transactions, collateral release, switching to other coins, etc.
Despite the fact that 2 years have passed, the DeFi direction continues to develop. After the stagnation of the cryptocurrency market (the fall of BTC from 60K to 20K) and the transition of the market to flat, the developers slowed down with the launch of new technologies. The GameFi, Play-to-Earn, metaverse sectors do not compete with DeFi, so the popularity of decentralized finance will most likely not fall in the near future.