DeFi

Decentralized Finance (DeFi) is the center of these crypto transactions. However, DeFi is an innovative niche that many enthusiasts still need to explore fully. Nevertheless, numerous smaller crypto assets with similar characteristics to DeFi tokens already exist. Binance Chain, PancakeSwap, and Uniswap are examples of DeFi platforms that harbor such investments. However, the others operate on their blockchain networks. What are Some DeFi Characteristics DeFi represents an experimental form of finance that does not depend on central intermediaries like banks,…

Decentralized Finance is one of the fastest-evolving and most lucrative fields in the crypto world. It is deploying financial software and applications on the blockchain. DeFi can enable a new banking approach and offer all banking services. Today, there are 2000+ DeFi projects. However, it takes work for rookies to make the right investment decision. DeFi platforms offer tools for analyzing and investing in DeFi and decentralized exchanges. Additionally, some venues have unique tools that analyze various markets and offer…

The DeFi space releases innovative financial tools almost every month. The latest one on this list should enable users to loan assets with lower-value collateral. Through undercollateralized loans, borrowers would access funds way above their holdings. Also, lenders would earn interest, and lending protocols would surpass traditional banks in approachable crediting services. As you can see, this feature should keep everyone happy. But, unfortunately, it all sounds just too good to be true. After all, undercollateralization should be the next…

At its core, Yield farming, also known as liquidity harvesting, involves the art of lending cryptocurrency. It provides more lucrative returns than any other cryptocurrency or conventional investment. It's a chance for the bold and risk-averse digital holders to win big. The United States Securities and Exchange Commission (SEC) is considering whether to regulate the process. In lending cryptocurrencies, the owner profits when the coin appreciates. Therefore, yield farming is an incentive that stimulates the adoption and growth of cryptocurrencies. Yield farming…

The surge in Bitcoin's popularity prompted the design of a whole industry on blockchain technology and digital assets. Some crypto market members contend that decentralized systems will gradually replace traditional services.  While it's still early to be confident about these claims, we can all agree that there is an intriguing competition between Decentralized Finance and cryptocurrencies. This article will focus on the primary differences between the two and which one you are more likely to profit from its trades. DeFi…

When contemplating investing in a particular company, a serious investor always wants to know the company's real value beforehand. There are straightforward ways of determining the company's value in traditional finance, like multiplying stock by the unit stock price.  In Decentralized finance, good investors always want to analyze the value of a Defi project before making any decision. But how can an investor know the actual value of Defi? The most popular metric used in the Defi world is determining…

Decentralized Finance (DeFi) has been making headlines for the past year and has massively gained users and market capitalization. DeFi refers to financial services utilizing smart contracts. These contacts are automatically enforceable agreements that do not require an intermediary such as a bank but rely on blockchain technology.  Between December 2019 and now, the DeFi industry has grown from $700 million to $74.96 billion. It represents about 5.3% of the total crypto market space. This article will then focus on…

Banks have been in the financial industry for years and are considered the backbone of the financial world. Banking networks have provided various services, including lending, saving, and borrowing. However, this guide will focus more on the lending part of banking systems. Lending involves allowing others to get money but sign an agreement of future payment of the lent sum. The interactions between the parties involved in a lending contract and the interest rates will help determine the best option…

This year has seen the restructuring of the crypto sector in many different ways. The DeFi and NFT sectors' growth has greatly strained older blockchains, such as Ethereum. These networks were built in a way designed to increase their fee structure based on the blockchain's congestion. Unfortunately, this design flaw has created record-high gas fees for users. These fees have left many in the market searching for viable alternatives.  One option that has seen considerable growth due to these factors…