DeFi (Decentralized Finance) is one of new innovations based on decentralized distributed technology on blockchain. DeFi minimizes financial risks including market risk, credit risk, and operational risk that lies in the current financial system. It will ultimately revolutionize financial system by creating a new demand and perspective. It does not rely on the traditional financial system where multiple intermediaries are present for the process of credit evaluation, screening borrowers and so on. Instead, smart contracts are deployed for transaction settlement enhancing transparency and credibility. In addition, the system that works for providing financial services and the governance for decision-making become decentralized to mitigate financial risks that users frequently face with current financial services.
DeFi services encompasse a wide range of areas including lending, staking, depositing and derivatives market being introduced by numerous global projects. To date, however most pojects have focused on decentralization just in offering financial services disregarding other key features that sholud be considered in tandem for complete decentralization.
For instance, there are projects solely committed to maximizing returns of participants of the network, projects with simple implementation of a technology for decentralization, projects with user-hostile UI (User Interface), projects that only provide low interests and meager returns and so on. It is how the majority of projects have been developed so far. Even worse, a large number of projects are struggling with low transaction volume except for a handful of successful ones. What matters for decentralization is sharpening all relevant features to be perfectly decentralized, not to mention financial services provided through smart contracts.
The team of DUCATO has been operating lending and depositing services for digital assets. With this background, the team will realize an optimized blockchain technology, user-centric services, the increase of network participants, reliable algorithm development and a decentralized governance to aim at building a platform for credibility and profits of network participants.
Furthermore, a cryptocurrency (DUCATO token, KRWD) will be introduced to remove the obstacle of different financial infrastructure across countries contributing to expanding the digital asset finance and payment market. It will also move toward building gradual decentralized ecosystem called, Hybrid DeFi 2.0.
Hybrid DeFi 2.0 — all new service that combines user-friendly CeFi (Centralized Finance) with high liquidity and decentralized reliable DeFi.
KRWD: Smarter Digital Currency — a collateral-backed stable coin whose value is pegged to Korean won (KRW).
DUCATO: DeFi Blockchain Protocols — an optimized blockchain technology, user-centric services, reliable algorithm and decentralized governance.
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Original Medium Post: https://email@example.com/project-differences-hybrid-defi-and-cefi-4f16ad995cd5