Estonia, November 11, 2020, ZEXPRWIRE, Since the arrival of the first cryptocurrency, Bitcoin, in 2009, we continue to see two kinds of people. The one, who calls it a bubble, and the other, who calls it a boon.
Even now, after a decade, some are still pondering on the same question. But, it’s worth mentioning that a few who believed it’s a bubble that is about to burst have already started reaping the benefits of their crypto investment after understanding its potential benefits.
It doesn’t negate that many bogus investment opportunities have crept into the cryptosphere in the name of Initial Coin Offering (ICOs) to raise funding for the startups and swindle the currency of many crypto-investors.
The noobs who considered cryptocurrency as a get-rich-quick-scheme are the ones who lost their currency heavily due to their lousy investment strategies.
On the other hand, those fascinated by the blockchain, the game-changing technology behind Bitcoin, have either brought in new secured transaction mechanisms to enhance the blockchain ecosystem or become its strong proponent and investors.
Emergence Of Decentralized Application:
Before Ethereum came into force, many crypto backers and investors were interested in developing the Bitcoin network.
After Ether (ETH) entered the mainstream, it opened up the new investment possibilities and other decentralized applications. These decentralized applications dwell on tokenization where its transactions formulated using Smart Contracts.
It led to the path of decentralized finance or DeFi, a peer-to-peer network transaction, which is entirely different from the centralized banking infrastructure like central banks.
Of late, decentralized finance has become the most exciting trend in the blockchain space. Although its adoption is minimal compared to the current global economy, DeFi has shown its rapid growth potential in 2020.
In the first quarter of 2019, there was only $275 million worth of crypto assets in the DeFi economy. During early Feb 2020, the number has grown into 1 Billion USD, and it has continued to grow upto 2.5 billion USD in July 2020.
It shows that there is significant growth in DeFi acceptance, both inside and outside the crypto community. So, a lot of people have started considering decentralized finance as part of their investment portfolio.
To do that, one needs to have a clear, in-depth understanding of the DeFi ecosystem.
So, let’s understand what decentralized finance is? What are the use cases of DeFi? What are the benefits of DeFi?
What is Decentralized finance?
Decentralized finance or DeFi is an umbrella term which refers to the distributed ledger technology (DLT) financial application which conducts one or more decentralized functions such as storing transaction records in several nodes, instead of controlled by a central source.
The distinct quality of DeFi, which makes it more intriguing than the existing centralized banking system is it doesn’t have any single entity or selected human gatekeepers to oversee or manage the transactions. It means there is no third-party authority between the sender and the receiver.
Not just that, DeFi can go beyond the use of DLT from simple transaction service to more complex financial applications.
Some of the existing complex financial applications are loans, insurance, crowdfunding, derivatives, betting, etc.
For using any finance applications, you need to come across numerous intermediaries. In DeFi, it is possible to avail loans, insurance, and funding without having middlemen involved.
To avail of any decentralized financial services, we need a protocol that offers more secured, simplified, and reliable DeFi service providers.
YFIDapp finance is the new protocol that has been built to eliminate the complexity of the existing DeFi ecosystem and provide a simplified and fully audited protocol packed system. YFIDapp finance DeFi project offers a plethora of DeFi services like borrow, lend, stake, betting, and yield farming with ease.
Let see each of the DeFi services provided by YFIDapp finance in detail, but before that, we need to understand the relation between DeFi and Ethereum network. How does it assist in a smooth functioning DeFi ecosystem?
Ethereum Network And DeFi:
Most of the DeFi applications developed on the Ethereum platform. It helps execute complex transactions, making the Ethereum network more unique and set apart from the Bitcoin platform. The execution is taken care of by the smart contract.
A smart contract enables the DeFi platform to auto-execute the transaction with the help of pre-determined protocols.
For example, if a person X wants to send a certain amount to person Y, only if he completes a website development in 10 days. These executing protocols are defined in smart contracts. These smart contracts will act on your behalf and send the amount to the receiver after automatically verifying whether Y satisfied the conditions.
Now, you can clearly understand that an Ethereum-based smart contract is a backbone to many popular DeFi applications and concepts that thrive with smart contracts.
YFIDapp finance provides all the below-mentioned application services in a more accessible, secure, and intuitive governance model. YFIDapp finance is considered more secure because it works in ERC20 smart contract. It has been audited and fully certified by the Blockchain Consilium, a trusted, smart contract auditing firm.
List of YFIDapp’s finance services:
Staking cryptocurrency or tokens means holding a YFIDapp token or any specific crypto in their wallet for a particular lock-in period (just 48 hours), and receive a fixed return reward of 1% per day. The users will continue to receive these rewards until they continue to stake the specified number of cryptos.
YFIDapp finance has a specific staking mechanism that maintains the optimum price of the available circulating supply’s optimum price based on the supply and demand metrics. Staking cryptos contributes to the crypto pool and helps the risk-averse crypto investor gain lower but a fixed-return.
As the cryptocurrency market is highly volatile than the stock market, it is necessary to consider the project’s details before investing.
At YFIDapp, we ensure all staked coins and tokens project background is thoroughly examined, and staking protocol is defined in a smart contract. It eliminates the security issue and provides access to rewards quickly.
Upon participating in YFIDapp FINANCE staking, users committing funds as collaterals to an existing YFIDapp protocol will get a sustained and guaranteed fixed return rate for their staked tokens at the rate of 1% per day, which translates to 30% monthly returns for the eligible liquidity providers.
The complete staking mechanism is carried out based on YFIDapp tokenomics, where the total supply of token is 100,000, and 30% of it is available for staking, i.e., 30,000 tokens.
Our YFIDapp staking has been designed to remain simple and easy to adapt widely. According to our staking protocol, to get the rewards, one has to stake the tokens for 48 hours lock-in period in the beginning. After the lock-in period, a user can withdraw or unstake tokens along with the rewards. If a user continues to stake up their tokens or coins, he/she can earn rewards for 1% per day daily.
Details in a nutshell:
Total supply: 100,000
Tokens for staking: 30,000
Lock-in period: 48 hours
Rewards: 1%/day (30%/month)
YFIDapp finance launchpad is a token launch platform transformative crypto project. It is an Initial Exchange Offering (IEO) system that helps to launch tokens for fundraising.
Our launchpad ecosystem’s primary goal is to help accelerate the crypto startup projects to reach the highest standards. For joining our launchpad, the project needs to satisfy the set of defined strict guidelines to ensure quality, security, and efficiency.
YFIDapp LAUNCHPAD PROJECT REQUIREMENTS:
- The project should refrain from private sales of tokens when the YFIDapp team reviews it.
- Once the project is accepted, it is necessary to fully secure the tokens using our fully audited and secure smart contracts.
- After successful integration, token pre-sale is conducted by the launchpad and also in other token listings.
Yield farming is a way to generate rewards by providing crypto liquidity by locking cryptos in the liquidity pool. It is often confused with staking, but there is a lot of difference in its operational complexity between the two.
The users are liquidity providers (LP) who add funds to the liquidity pool. The rewards can be of fees generated by the underlying DeFi platform or of multiple tokens.
Any community is made of both haves and have-nots. In the DeFi peer-to-peer lending ecosystem, the haves are lenders, and have-nots are borrowers.
Lenders can earn passive income by providing liquidity to the borrowers, and the borrowers have access to loans based on collaterals. Unlike the traditional lending mechanism, you do not need to show up your credit score and person details.
In YFIDapp, you deposit the asset amount and start earning passive income based on the loan market’s demand.
With the surge in the adoption of bitcoin and other cryptocurrencies, new economic opportunities are emerging. The development of crypto is not limited to the finance sector; many different business verticals are eyeing for the newfound opportunities in this field.
Gambling is one such area that is fast adopting crypto-based online casino games. YFIDapp crypto-casinos games can be played using bitcoin and other cryptocurrencies.
One of the significant advantages of online crypto casinos is anonymity, which traditional casinos cannot provide. Anonymity is essential because most of the casino players prefer to stay anonymous for security reasons. It helps the players secure their winning amount without being an easy target for kidnapping, theft, and fraud.
With the fast adoption of decentralized finance applications and emergence of many use cases, there is a scope for mainstream acceptance in the near future. And also, it paves the way for blockchain developers, DeFi investors, and other supporting infrastructure to grow exponentially. Most importantly, after the current pandemic situation, people and governments worldwide have started evaluating its pros and cons to leverage it’s potential.
Now that you have clarity and understand the importance of having the DeFi part of your investment portfolio. If you are looking for a secured, efficient, and user-friendly DeFi platform, YFIDapp is the right place for you.
Important social media links to look out for:
Website — https://yfidapp.finance/
Twitter — https://twitter.com/YFIDapp
Medium — https://yfidapp.medium.com/
GitHub — https://github.com/yfidapp
Telegram — https://t.me/YFIDappOfficial
Telegram Ann: @YFIDappannouncement
The post Understanding YFIDapp’s Decentralized Finance Ecosystem appeared first on Zex PR Wire.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Daily Scotland News journalist was involved in the writing and production of this article.