Decentralised Finance (DeFi) — Financial System For the People 分散式金融-属于人民的金融系统
This is nothing like tulip, dotcom or subprime mortgage. DeFi is the true definition of “new money”. 这与郁金香，互联网公司或次级抵押贷款完全不同。 分散式金融是”新钱”的真正定义。
Decentralized finance, also known as DeFi, uses blockchain technology to manage financial transactions and services. DeFi aims to democratize finance by replacing intermediaries, centralized institutions with peer-to-peer relationships that can provide a full spectrum of financial services, from personal banking, loans, borrowing, to complicated contractual relationships and asset trading.
Centralized Finance Today
Today, almost every aspect of banking, financial services and money is managed by centralized systems, operated by governing bodies and central banks. Regular consumers need to deal with a raft of financial middlemen to get access to everything from loans and mortgages to trading stocks.
In the U.S., regulatory bodies like the Federal Reserve and Securities and Exchange Commission (SEC) set the rules for the world of centralized financial institutions and brokerages, and Congress amends the rules over time.
As a result, there are few paths for consumers to access capital and financial services directly. They cannot bypass middlemen like banks, exchanges and lenders, who earn a percentage of every financial and banking transaction as profit. Participants within the centralised finance ecosystem have to pay big institutions.
The New Way: Decentralized Finance
DeFi challenges CeFi system by disempowering middlemen, and empowering everyday people via peer-to-peer transactions.
Decentralized finance is an unbundling of traditional finance. DeFi takes the key elements of the services provided by banks, exchanges and insurers today — like lending, borrowing and trading — and puts it in the hands of retail investors or the unbanked.
For example — Today, you might put your savings in an online savings account and earn around 0.50% interest rate on your money. The bank then turns around and lends that money to another customer at a higher interest and pockets the profit. With DeFi, people lend their savings directly to others, cutting out that profit loss to banks and earn the full return on their money.
DeFi Runs on Blockchain
Blockchain is the core technology that enable decentralized finance.
When you make a transaction in your conventional checking account, it’s recorded in a private ledger — your banking transaction history — which is owned and managed by a large financial institution. Blockchain is a decentralized, distributed public ledger where financial transactions are recorded in cryptography.
When we say that blockchain is distributed, that means all parties using a DeFi application have an identical copy of the public ledger, which records each and every transaction in encrypted code. That secures the system by providing users with anonymity, verification and a record of asset ownership that’s almost impossible to alter by fraudulent activity.
Transactions are verified and recorded by parties who use the same blockchain, through a process of solving complex math problems and adding new blocks of transactions to the chain.
Advocates of DeFi assert that the decentralized blockchain makes financial transactions secure and more transparent than the private, opaque systems employed in centralized finance.
How DeFi Is Being Used Now
DeFI is making its way into a wide variety of simple and complex financial transactions. It’s powered by decentralized apps, or other protocols. Dapps and protocols handle transactions in various smart contract protocols such as Ethereum, Binance Smart Chain and Polkadot.
In the current market, Ethereum is much more adaptable to a wider variety of uses, meaning much of the dapp and protocol landscape uses Ethereum-based code. Binance Smart Chain is coming close behind Ethereum.
Here are some of the ways dapps and protocols are already being used:
- Traditional financial transactions. Anything from payments, trading securities and insurance, to lending and borrowing are already happening with DeFi.
- Decentralized exchanges (DEXs). Most cryptocurrency investors use centralized exchanges like Coinbase or Binance. DEXs facilitate peer-to-peer financial transactions and let users retain control over their money.
- Open-Source wallets. DeFi developers are creating digital wallets that can operate independently of the largest cryptocurrency exchanges and give investors access to everything from cryptocurrency to blockchain-based games.
- Stable coins. While cryptocurrencies are notoriously volatile, stable coins attempt to stabilize their values by pegging them to fiat curreny, like the U.S. dollar.
- Yield harvesting. Dubbed the foundation of crypto, DeFi makes it possible for speculative investors to lend crypto and potentially reap big rewards when the proprietary coins DeFi borrowing platforms pay them for agreeing to the loan appreciate rapidly.
- Non-fungible tokens (NFTs). NFTs create digital assets out of typically non-tradable assets, like videos of slam dunks or the first tweet on Twitter. NFTs commodify the previously un-commodifiable.
- Flash loans. These are cryptocurrency loans that borrow and repay funds in the same transaction. Sound counterintuitive? Here’s how it works: Borrowers have the potential to make money by entering into a contract encoded on the Ethereum blockchain — no lawyers needed — that borrows funds, executes a transaction and repays the loan instantly. If the transaction can’t be executed, or it’ll be at a loss, the funds automatically go back to the loaner. If you do make a profit, you can pocket it, minus any interest charges or fees. Think of flash loans as decentralized arbitrage.
The DeFi market gauges adoption by measuring what’s called Total Value Locked, which calculates how much money is currently working in different DeFi protocols.
Adoption of DeFi is powered by the omnipresent nature of blockchain: The same moment a dapp is encoded on the blockchain, it’s globally available. While most centralized financial instruments and technologies roll out slowly over time, governed by the respective rules and regulations of regional economies, dapps exist outside of these rules, increasing their potential reward — and also increasing their risks.
Risks and Downsides of DeFi
DeFi is an emerging phenomenon that comes with many risks. As a recent innovation, decentralized finance has not been stress tested by long or widespread use. In addition, national authorities are taking a harder look at the systems it’s putting in place, with an eye toward regulation. Some of the other risks of DeFi include:
- No consumer protections. DeFi has thrived in the absence of rules and regulations. But this also means users may have little recourse should a transaction go foul. In centralized finance, for instance, the Federal Deposit Insurance Corp. (FDIC) reimburses deposit account holders up to $250,000 per account, per institution if a bank fails. Moreover, banks are required by law to hold a certain amount of their capital as reserves, to maintain stability and cash you out of your account any time you need. No similar protections exist in DeFi.
- Hackers are a threat. While a blockchain may be nearly impossible to alter, other aspects of DeFi are at large risk of being hacked, which can lead to loss of funds through smart contract exploits. All of decentralized finance’s potential use cases rely on software systems that are vulnerable to hackers.
- Collateralization. Collateral is a thing of value used to secure a loan. When you get a mortgage, for instance, the loan is collateralized by the home you’re buying. Nearly all DeFi lending transactions require collateral equal to at least 100% of the value of the loan, if not more. These requirements vastly restrict who is eligible for many types of DeFi loans.
- Private key requirements. With DeFi and cryptocurrency, you must secure the wallets used to store your cryptocurrency assets. Wallets are secured with private keys, which are long, unique codes known only to the owner of the wallet. If you lose a private key, you lose access to your funds — there is no way to recover a lost private key. Till date, there is no found methods that can recoup loss of private keys and seed phrases.
How to Get Involved with DeFi
If you’d like to learn more about DeFi in a hands-on way, here are a few ways to get started:
Get a Crypto Wallet
Start by setting up an Ethereum wallet like Metamask or other open-source wallets, then funding it with Ethereum. Crypto wallets are your ticket to the world of DeFi, but make sure to save your private key, seed phrases etc. Once you lose these, and you won’t be able to get back into your wallet.
The Future of DeFi
From taking out the middleman to turning basketball clips into digital assets with monetary value, DeFi’s future looks bright. We see both the promise and potential of DeFi as far-reaching, even though it’s still in the infancy of its capabilities.
Investors will soon have more independence, which will allow them to deploy assets in creative ways that seem impossible today. DeFi also carries big implications for the big data sector as it matures to enable new ways to commodify data.
But for all its promise, DeFi has a long road ahead, especially when it comes to uptake by the general public.
The promise is there and we want to continue educating people about the potential, but we also need to keep working hard to build the tools that will allow people to see it for themselves.
ExoniumDEX is developing a blockchain-based platform that aims to provide a bridge between synthetic assets and fiat money, cryptocurrencies, stocks and other financial instruments.
The recent expansion of DeFi projects brought multiple innovative platforms to the ecosystem but most projects are still centralized or governed by a small group of participants making it difficult to make a smooth integration with other platforms.
We aim to aggregate all current and future DeFi applications under the same ecosystem that can be managed in a decentralized way without unnecessary fragmentation. This approach will allow for quick development and a more efficient market for users.
DeFi protocols like tEXO are the future for savvy investors to mitigate regulatory risk in a world of uncertainty. CEX can always pause withdrawals and has control over your funds. With a DEX, you remain in full control.
The future of finance belongs to the people.
不可替代的令牌（NFT）。 NFT从通常不可交易的资产中创建数字资产，例如灌篮的视频或Twitter上的第一条推文。 NFT将以前不可商品化。
DeFi市场通过测量所谓的总价值锁定（Total Value Locked）来衡量采用率，Total Value Locked计算出在不同的DeFi协议中当前有多少钱在运转。
嘉库DEX — tEXO
嘉库DEX $tEXO 是下一代强大的去中心化应用，支持基于各种生态系统的项目。我们充当现代化的超级去中心化应用，您可以在其中使用各种区块链协议。
嘉库DEX ($tEXO) 具有全面的可互操作的分散式金融解决方案，旨在集成来自不同区块链协议的项目，以在 嘉库DEX ($tEXO) 内实现可互操作的分散式金融生态系统。