What is DeFi in crypto

What is DeFi in Crypto

DeFi is one of the hot topics in the crypto space at the moment. DeFi is just short for Decentralized Finance.

It describes the idea of not needing a trusted third-party to execute financial services, but with a blockchain in its place to enable people, and in the future, machines to become their own bank for these services, removing counterparty risks.

Currently, there are all sorts of DeFi projects trying to solve real-world financial problems. Let’s have a look at what DeFi is and why we need it.

Why Do We Need DeFi?

Any service offered by a bank can be decentralized. DeFi can make traditional finance obsolete by offering financial services without the intermediaries that you would usually encounter, like brokers and banks.

The first and most common service is issuing money. Bitcoin is a prime example of that. Many others like consensus verification, i.e. mining and staking, lending, exchanging, investing and more.

DeFi has many potentials if you consider all the possibilities it can make available for the financial world. This is why DeFi is a hot topic at the moment, and all the projects are racing to be the first to launch new DeFi products. With the technology that we have today, there is no reason for centralized finance to exist.

We don’t really need DeFi, but it does have benefits over traditional finance, and it can also provide ways to generate cash flow from your crypto rather than just relying on capital gains. For these reasons, I believe it will be adopted by the masses. DeFi is the way of the future.

I have been studying DeFi for a while and believe I have found a fantastic DeFi project. Let me tell you about DeFiChain and CAKE DeFi.

What is DeFiChain

DeFi services run on blockchain technology. The DeFi Chain was created exactly for DeFi Services while providing the optimal infrastructure for security, speed, and access, to name a few.

Watch DeFiChain & DFI explained – 2 min.

DeFi Blockchain is a decentralized blockchain platform specifically dedicated to enabling fast, intelligent, and transparent, decentralized financial services accessible by everyone, everywhere.

Running on a proof-of-stake consensus mechanism, it features proven security and immutability by anchoring its most recent Merkle root to the Bitcoin blockchain every few minutes. The platform also features unparalleled high transaction throughput for all transactions, and reliable decentralized governance, on and off-chain.

The DeFi Foundation is located and incorporated in Singapore as a company limited by guarantee (resembling a foundation structure). The foundation is led by highly experienced blockchain experts Dr Julian Hosp (chairman) and U-zyn Chua (CTO).

The DeFi Blockchain is designed for investors in the cryptocurrency market who are looking to make their cryptocurrency work just like any other form of capital, such that they can ensure a return on investment in any market.

The blockchain features include Decentralized: Lending, Wrapping of Tokens, Pricing Oracles, Exchanges, Transferable Debts and Receivables, Non-Collateralized Debt, Asset Tokenization, and Distribution of Dividends.

What Can I Do on DeFiChain?

You can run a masternode or a full node and be completely decentralized and interact with the DeFiChain on your PC. There is a Dapp that you download. It synchronizes with the blockchain. This is the platform (node) that you use to do transactions and interact with the blockchain. It is decentralized and has no direct support. You are 100% responsible for all your actions on the node and hold your own keys.

On the Dapp, you can store your coins in the wallet. You can put money into the liquidity pool. You can exchange coins on the DEX and even create your own token if you want. If you want to Stake directly on DeFiChain, you need 20,000 DFI to run a masternode. 20,000 DFI = approx $68,000.

DeFiChain is constantly improving and providing more investment options all the time. They have a full White Paper and Roadmap that you can view on their website from the link below. Some of the stuff they are working on is decentralized leveraged trading & decentralized option contracts.

Soon, they will also be providing decentralized borrowing and lending and much more.

If you want to learn more about DeFiChain or want to download the Dapp so you can run a node yourself, it is all available from this link ===>> DeFiChain Website. 

What is CAKE DeFi

If you are technically challenged or don’t want the hassle of running a node, there is an easy alternative. It is called CAKE DeFi.

At CAKE DeFi, you can lend crypto and get guaranteed interest. You can stake DFI, earn great rewards, and join the liquidity mining pools and earn insane rewards. CAKE DeFi is a company based in Singapore and has provided a user-friendly platform for investing on the DeFiChain.

CAKE DeFi Explained – cashflow from your crypto

What Can I Do at CAKE DeFi

CAKE DeFi is an investment platform for your crypto. You can put your crypto to work for you and generate cash flow without the hassle of running a full node on DeFiChain. Because CAKE provides a service, they charge a small fee, but they also have an awesome support team.

There are three main services or ways to invest at CAKE DeFi,

  • Lending Service
  • Staking
  • Liquidity Mining

All the services have different risk level (lending is guaranteed returns) and provide different returns on your investment. If you are looking for an easy, safe way to put your crypto to work for you and earn a truly passive income, CAKE DeFi is it.

Open your Account at ===> CAKE DeFi

Read a ===> Full Review on CAKE DeFi 

I have been investing at CAKE DeFi for over 6 months now and can not fault them. They are the most transparent company I have ever seen and have a fantastic support team. CAKE DeFi is a company doing Big things in the DeFi space and is dedicated to DeFi only. Anchoring to BTC blockchain gives them a lot of advantages over DeFi on Ethereum.

Is DeFi Safe to Invest In?

The DeFi space can be compared to the ICO era a few years ago. A lot of new projects popping up all running on the Ethereum network. The truth is a lot probably are scams, and even those that are not scam might not make it. Very few will reach greatness.

There has been a lot of rug pulls lately on Uniswap. These scammers create a token, hype it up, market it well, list it on Uniswap and a few hours later pull the rug. They take all the liquidity for themselves, and you don’t hear another word. Don’t fall for these scams.

DeFiChain is a little different to most of the DeFi projects. It is anchored to Bitcoin Blockchain, not Ethereum. This has a lot of benefits, including greater security.

Benefits of DeFiChain

  • Development of a variety of financial operations & vehicles for the cryptocurrency economy.
  • High throughput for all transactions
  • Safer, more secure blockchain specifically for decentralized finance…
  • The rapid development of dApps for decentralized finance.
  • Peace of mind that the blockchain is not used for any types of non-financial dApps. Thus, Foundation and core developers’ decisions are focused 100% on decentralized financial use-cases and nothing else.
  • The rapid development of dApps with dedicated calls specifically for finance applications.
  • The minimal attack surface of financial smart contracts developed on the platform.
  • Reliable governance (off-chain and on-chain).
  • Highly immutable – by periodic anchoring to Bitcoin blockchain.

Final Thoughts on DeFi

Defi can be a little more tricky to navigate than just HODLing crypto. I personally run a full node on the DeFiChain and Stake my rewards at CAKE DeFi. I like the technical side of running a node and learning what it is all about, but it is probably not for a beginner.

CAKE DeFi, on the other hand, is a place where a beginner can start investing with crypto. It is a platform that is user friendly and is dedicated to bringing DeFi to the masses. You can open your CAKE DeFi account <=== from the link.

I personally believe that DeFi will be the way of the future, and I am excited for all the possibilities that it is opening up in the financial world. I have done a lot of research and do believe that DeFiChain and CAKE DeFi are great projects. They have big plans in the DeFi space and are definitely worth a look.

DeFi is the future of finance, so why not start learning what it is all about and earn rewards along the way. You can do that at CAKE DeFi why not open your account today.
Then the next time someone asks you What is DeFi in Crypto you will be able to tell them all about it.

P.S. If you use the link above or this code 921297, you can receive a $10 bonus.

Be the Best you can Be

DeFi
Dave


! DISCLAIMER: I am not a financial advisor. This is not financial advice. The content and material I provide on 2dsirecrypto.com is my opinion only and general in nature. Always do your own research before investing any money. You should always understand the risks involved in trading and investing and seek advice from licensed professionals before undertaking any investments of your own.

8 thoughts on “What is DeFi in Crypto”

  1. Hi and thanks for sharing this. I agree that decentralized finance is a very interesting area and I can see the advantages of building a system that enables decentralized finance applications for Bitcoin. I checked out the link to CAKE DFI and saw some services that were potentially interesting. It was quoting various rates of return on coin pairs. But I could not tell the period that the returns were quested for. For example, it says, BTC-DFI 5%. But how frequently would that 5% be generated? Thanks, Andy

    1. Hi Andy,

      Rewards for staking DFI are paid every 12 hrs and are around 37% APY.
      Liquidity mining pairs like BTC-DFI is current just under 100% APR.
      You can also Lend BTC & ETH & USDT and get guaranteed returns 5% APY You enter a contract for a month and are paid at the end of the contract.

      Hope that helps 
      Crypto Dave

        1. Glad I could help Andy. I see you are into options. I used to trade options a long time ago but only trade crypto now.

          Crypto Dave

  2. Thank you for this article.  I was unsure about crypto, defi centralized, and now I am better equipped to understanding the basics of investing.  I definitely will take use of the free course that is offered to understand even more on this topic.  I will definitely take the opportunity to open a cake defi and start earning rewards since this platform is beginner friendly, and it is an investment platform crypto and it is decentralized and accessible by everyone and everywhere.  

    Thank you for sharing.

    1. Hi Diane, CAKE DeFi is an excellent place to start, and I would highly recommend doing the free course even if you don’t want to trade because it covers all the basics like opening accounts and buying crypto etc…

      CAKE is centralized, though, because they are managing your coins for you. CAKE DeFi can be trusted and have just made it easy for everyone to invest in DeFi.

      If you want to be fully decentralized, you need to run a full node yourself which can be a bit technical.

      Be the Best you can Be

      Crypto Dave

  3. Hi, I’ve just gone through your article on what DeFi in crypto is. I find it very educative and informative. I must agree with you that in recent ages, fraud has become the highest crime in the world and therefore counterparty risks need to be avoided as far as possible. And with the technology we have today, there is no need for centralized finance to exist as you clearly stated. Thank you so much for sharing this amazing piece of writing with us, I promise to share it further too.

    1. Good to see you got something from the post, glad you enjoyed it. DeFi is the way of finances in the future. Feel free to share.

      Crypto Dave

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