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DeFi is an emerging financial technology based on secure distributed ledgers utilizing the blockchain technology.
This system replace the traditional finance (central banks and other institutions).
DeFi is an emerging financial technology based on secure distributed ledgers utilizing the blockchain technology.
This system replace the traditional finance (central banks and other institutions).
In TradFinance banks and other big institutions have control on money, financial products, and financial services.
In Defi everyone have equal privilege. No third parties, you just need internet and secured wallet. You can do anything you want at anytime, no need of approval.
In Defi everyone have equal privilege. No third parties, you just need internet and secured wallet. You can do anything you want at anytime, no need of approval.
To full understand Defi you need to understand how TradFi worksπ
Banks and other corporations hold your money, third parties like visa, Mastercard etc facilitate money movements (transfer etc). All of those need a lot of workers, buildings, security, and other expenses.
Banks and other corporations hold your money, third parties like visa, Mastercard etc facilitate money movements (transfer etc). All of those need a lot of workers, buildings, security, and other expenses.
Total operating cost in TradFi is a lot; hence transactions fees are high, loans can take days to be approved; you might not even be able to use a bank's services if you're traveling or on weekends.
DeFi come to solve these issues, transaction fees, speed, and accessibility.
DeFi come to solve these issues, transaction fees, speed, and accessibility.
DeFi's goals are to reduce transaction fees, speed and increase access to financial services.
Itβs eliminates intermediaries and bring power to people thro emerging technology.
You can stake/save, lend, trade, and borrow using software/protocols at any time and instantly.
Itβs eliminates intermediaries and bring power to people thro emerging technology.
You can stake/save, lend, trade, and borrow using software/protocols at any time and instantly.
How to get started with DeFi
You just need internet and secured digital wallet (to find compatible wallets see previous thread)
Go to Defillama.com and find the Defi protocol you like. Defillama is an hub contains all the Defi ecosystem and provide data in real time.
You just need internet and secured digital wallet (to find compatible wallets see previous thread)
Go to Defillama.com and find the Defi protocol you like. Defillama is an hub contains all the Defi ecosystem and provide data in real time.
Various Defi ecosystem and best Protocols
In a simple way Defi ecosystem is a blockchain tech that allow other service (like dApp, NFT marketplace etc) to run on top of it.
In your defillama.com go to chains, you will find some chains and their protocols. See π
In a simple way Defi ecosystem is a blockchain tech that allow other service (like dApp, NFT marketplace etc) to run on top of it.
In your defillama.com go to chains, you will find some chains and their protocols. See π
Here are my best dApp;
Ecosystem: Ethereum
Best Protocols & their uses
-Compound: Lending & Borrowing
-Abracadabra: //
-Cream finance: Staking & Lending
Ecosystem: TerraLuna
Best Protocols and their uses
-Anchor: Staking and Lending
-Mirror: Stock trading, staking & borrowing
Ecosystem: Ethereum
Best Protocols & their uses
-Compound: Lending & Borrowing
-Abracadabra: //
-Cream finance: Staking & Lending
Ecosystem: TerraLuna
Best Protocols and their uses
-Anchor: Staking and Lending
-Mirror: Stock trading, staking & borrowing
Ecosystem: Binance
Best Protocols and their uses
-Beefy finance: Yield optimizer (auto compounder)
-Autofarm: //
-Cream finance: Staking & Lending
Ecosystem: Avalanche
Best Protocols and their uses
-Time: Asset
-Abracadabra: Lending & Borrowing
-Beefy finance: Yield optimizer
Best Protocols and their uses
-Beefy finance: Yield optimizer (auto compounder)
-Autofarm: //
-Cream finance: Staking & Lending
Ecosystem: Avalanche
Best Protocols and their uses
-Time: Asset
-Abracadabra: Lending & Borrowing
-Beefy finance: Yield optimizer
Ecosystem: Fantom
Best Protocols and their uses
-Geist finance: Staking & Lending
-Beefy finance: Yield optimizer
-Abracadabra: Lending & Borrowing
-Tomb finance: Yield optimizer
-HectaDao: Asset
Go to fantom.foundation they have user friendly website. Very easy to use.
Best Protocols and their uses
-Geist finance: Staking & Lending
-Beefy finance: Yield optimizer
-Abracadabra: Lending & Borrowing
-Tomb finance: Yield optimizer
-HectaDao: Asset
Go to fantom.foundation they have user friendly website. Very easy to use.
Now at least you have a big picture you can manage to navigate by yourself. Once you start you will notice all the protocols operate in the similar manner and some of them are in more than one chain (multi-chain).
In the coming threads I will go through each protocol separately.
In the coming threads I will go through each protocol separately.
How to earn Passive income in Defi
Know the level of risk u can tolerate & choose the best protocol you like.
If you canβt manage risk at all, you still gonna make it. You can stake stable coins (no volatility at all) in Anchor and get more than 20% return annually (risk free).
Know the level of risk u can tolerate & choose the best protocol you like.
If you canβt manage risk at all, you still gonna make it. You can stake stable coins (no volatility at all) in Anchor and get more than 20% return annually (risk free).
Insuring your Defi funds
Investing in smartchain come with risk. Some protocol have been exploited (hacked) and pple lost their funds.
Always remember to insure your Defi funds (cost like 1.9%). You can buy insurance from:
- Insurace.io
- Nexusmutual.io etc
Investing in smartchain come with risk. Some protocol have been exploited (hacked) and pple lost their funds.
Always remember to insure your Defi funds (cost like 1.9%). You can buy insurance from:
- Insurace.io
- Nexusmutual.io etc
Pros and Cons of Defi
There are plenty of opportunities in Defi, ranging from staking, lending and borrowing. You can earn passive income and use your fund as collateral to take loan and do whatever you like.
The technology is still young no regulations and control as of now.
There are plenty of opportunities in Defi, ranging from staking, lending and borrowing. You can earn passive income and use your fund as collateral to take loan and do whatever you like.
The technology is still young no regulations and control as of now.
Thanks for reading, stay connectedπ!
Coming threads will dive deeper in each protocol one by one.
Like and retweet to spread the knowledge!
@oaksupreme @Sirjeff_D @Theo_mwangi @galus_titanium @godbless_lema @crian_nicas @justinecodez @NNgailo @mathenge_waweru
Coming threads will dive deeper in each protocol one by one.
Like and retweet to spread the knowledge!
@oaksupreme @Sirjeff_D @Theo_mwangi @galus_titanium @godbless_lema @crian_nicas @justinecodez @NNgailo @mathenge_waweru
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