How DeFi will definitely Blow your mind?
Interest with The DeFi Compound
If there’s a gap between Cryptocurrency and Traditional Finance, then there is also in Cryptocurrency Space, here is the ongoing discussion between Defi and Cefi.
This two distinct branches of blockchain-based open finance Both tackle to untie people from the bank, wherein Centralized Finance or Cefi assets is been taken cared by the Central Corporations or Identities while in Decentralized Finance or DeFi assets is been taken cared by Smart Contracts or autonomous code. In this article, we will focus on the Open Finance movement or Defi.
How Defi will definitely blow your mind
Defi short for Decentralized Finance made it possible to access the current Financial Services even if you only have a smartphone & internet connection. Now, savings, loans, trading, insurance and more can be done and viable on smart Contract blockchains. On the other hand, “CeFi,” allows people to earn interest or get loans on their cryptocurrency by lending or borrowing it through a centralized corporation. These corporations are responsible for the success of their products and the well-being of their clients. Though these firms may be using a new kind of money, there is very little innovation in terms of structure.
One of the unveiling beauty of DeFi was, you can bank the unbanked population and get them to gain access with some of the current Traditional Financial Services. Defi has opened up unparalleled opportunities for the people to take control into their assets with minimum to zero barriers. It also made it easier for the start-ups to grow by letting the users to put a crypto on their wallet and earn interest or borrow without any credit history but only with crypto as collateral.
Jay Hao, the CEO of OKEx, a Malta based Cryptocurrency Exchange has also given his view about DeFi in an article.
" How can governments suddenly print trillions of dollars out of thin air when they have to pay taxes? Why have they endured years of austerity and cutbacks leaving their healthcare systems vulnerable? Does money really have any value to it at all anymore?"
" The cycle can be broken by removing central actors. And it comes in the shape of decentralized finance with C2C lending, high-interest accounts, and staking for returns"
While Bitcoin and Ethereum are the original DeFi applications. They are both controlled by a large network of computers. Bitcoin is the crown jewel of the Crypto Space as it was a store-of-value investment that protects against inflation, while Ethereum was the instrumental and the one who helps many start-ups crowdfunding, infact many initiatives have been built on the Ethereum network.
Yet, a "Stable Coin" Dai prevailing the DeFi conversation. Even it is a Bitcoin-like digital token with a same goal as bitcoin and other Cryptocurrency, Dai value is pegged to USD, dire reducing the volatility that prevents bitcoin from being practical for everyday purchases. Compound is a crypto version of a money market fund, letting users earn interest.
One of the world’s largest Cryptocurrency Exchange, OKEx Lists COMP Governance Token From DeFi’s Largest Platform Compound
OKEx listed COMP , the native token of Compound, an algorithmic, autonomous interest-rate protocol on the Ethereum blockchain.
“Compound has long been leading the field in decentralized finance, yet thanks to its continued innovation and development, it has now become the largest player in DeFi and a shining example of how far development has come in this space,” the CEO of OKEx, Jay Hao stated.
“We are extremely pleased to be able to help foster the growth of the DeFi ecosystem alongside Compound. It is our belief at OKEx that DeFi will eventually disrupt traditional finance and provide equal opportunities for everyone to access financial services. This, in turn, helps us to realize our vision at OKEx, which is to #FinanceAll,” he added.
Co-Founded by Robert Leshner and Geoff Hayes, Compound launched in 2017 and has been one of the cornerstones of the DeFi industry and, as of today, Compound is the world's largest DeFi protocol, with more than $600 million worth of crypto assets locked in it.
As mentioned earlier, DeFi made it possible to access the current Financial Services if you have Smart phone & Internet Connection, Compound is an ethereum project that focuses on allowing borrowers to take out loans and lenders to provide loans by locking their assets into the protocol.
The interest rates paid and received by borrowers and lenders are determined by the supply and demand of each crypto asset. Interest rates are generated with every block mined. Loans can be paid back and locked assets can be withdrawn at any time.
Built on top of that principle is cTokens, Compound's native token that allows users to earn interest on their money while also being able to transfer, trade, and use that money in other applications.
The demand for Compound had surging recently and one of the main reasons why is, multiple exchanges including OKEx listed the Compound’s Native Token, COMP, giving it a warmth welcome including a Trading Bonus Program.
