BiFarmsnetwork Decentralized Finance Ecosystem

DeFi is the popular nickname for Decentralized Finance, a financial system that works without the need for intermediaries, like banks or clearinghouses. Powered mainly by smart contracts, DeFi applications are able to accomplish what traditional finance, a.k.a. Centralized Finance (or “CeFi”), can but in an entirely global, permissionless, and transparent way.

DeFi has been rapidly gaining traction since 2020, partly because of protocols built on the Ethereum blockchain. Billions of US dollars have been put in the ecosystem, and this spanking new financial system has been prophesied to outperform CeFi, its traditional counterpart, in the coming years.

In the business model of commercial banks, loaning and lending is a fundamental cornerstone. Depositors provide liquidity to the markets and, in turn, earn interest on their otherwise unproductive assets. On the other hand, DeFi allows the borrowing and lending of money on a huge scale between unknown participants without any intermediaries. The applications bring lenders and loaners together. Interest rates are automatically set, depending on supply and demand. The advancement of borrowing and lending protocols has made the demand for DeFi applications sky rocket.

Moreover, DeFi protocols are already offering complex financial products trading and assets management similar to those currently offered by investment banks. Synthetix, for example, is a protocol that enables the decentral creation and trading of derivatives on assets like stocks and commodities.

There are also decentralized yield optimizer platforms, such as BiFarmsnetwork, which allow users to earn compound interest on their crypto holdings.

Through a set of investment strategies secured and enforced by smart contracts, the BiFarmsnetwork network automatically maximizes the user rewards from various liquidity pools (LPs),‌ ‌automated market making (AMM) projects,‌ ‌and‌ ‌other yield‌ farming ‌opportunities in the DeFi ecosystem.

The main product offered by BiFarmsnetwork is the ‘Vaults’ wherein crypto tokens are staked. The investment strategy tied to a specific vault will automatically increase the deposited token amount by compounding arbitrary yield farm reward tokens back into the initially deposited asset. Despite what the name ‘Vault’ suggests, the funds are never locked in any vault on BiFARMS and can be withdrawn anytime. So long as you have funds staked in a vault, you remain 100% in control of your crypto.

DeFi is a financial ecosystem existing digitally on a shared infrastructure. It means the traditional financial services like loaning, lending and trading but on a public network, accessible to anyone with a good internet service.

For the first time ever, a financial system is working at a massive scale without the need for intermediaries. DeFi protocols may not yet compete with CeFi in terms of security, ease of use, and speed, but it definitely has produced solid, stable applications that have already raked in billions of dollars. No doubt, that money will be used to create more competitive and user-friendly protocols in the future.

Certainly, there is much room for further development. However, it is not an impossibility that DeFi will soon become more convenient, efficient, and secure than traditional finance. We are excited to see how the different actors in traditional finance will react when their profits start to dwindle because of DeFi.

For more information:

Website: https://bifarms.network

Twitter: https://twitter.com/bifarmsnetwork

Telegram Group: https://t.me/bifarmsnetwork

Medium: https://medium.com/@bifarmsnetwork

Github: https://github.com/bifarmsnetwork

Email: contact@bifarms.network