Defi News
What is DeFi?
DeFi, or decentralized finance, is one of the biggest things in the blockchain and crypto industry right now. And it’s easy to see why: DeFi provides a variety of financial services that use blockchain technology to cut out middlemen and reduce costs.
How does DeFi work?
Decentralized finance is a new approach to the financial industry and banking. It uses blockchain technology, or what some people call cryptocurrency, and applications called dApps. In this system, transactions are recorded on a blockchain or a ledger of transactions. The secure ledger creates a record that cannot be altered or hacked by third parties and allows multiple users to verify the transactions through consensus.
The chain is a structure that links together the blocks of information it holds. Each block in the chain can hold a certain amount of data and contains an encrypted hash link to the previous block. The data contained in each block cannot be changed or altered, because once a block is completed it cannot be changed and the following blocks are all dependent on its information. This technology provides secure transactions through these permanent links and breaks down data to a manageable size by breaking it into pieces.
Pros of DeFi
The DeFi movement aims at introducing various benefits for customers and investors. Some of the notable advantages of DeFi would include the destruction of negotiators alongside centralized control. With these, one gains more transparency and control, whilst obtaining a decentralized network wherein all entities are granted access to financial services.
DeFi, which is also referred to as decentralized finance and dApp development, is the abstract of blockchain technology, a concept that has developed over time to address issues such as the lack of trust between users. DeFi would allow the creation of decentralized platforms that are designed to help in creating investment opportunities on a sustainable basis.
🔹Convenience
🔹 Security
🔹Autonomy
🔹 Profitability
Cons of Decentralized Finance
While the benefits of DeFi are many, it is important to get a neutral opinion about its cons and drawbacks as well. The majority of problems associated with today’s DeFi projects are generally linked to blockchain and other related technologies. Blockchain’s scalability issues have caused headwinds for the implementation of smart contracts in specific industries like supply chain management. On the other hand, blockchain’s security concerns have also dissuaded many investors from supporting DeFi startups
🔹Limited integration
🔹Poor user experience
🔹Lack of oversight
🔹Volatility and risk
The Future of DeFi
Decentralized finance is growing at a rapid pace with no signs of slowing down. But while the technology behind this innovation is truly fascinating, there are still many aspects lacking when it comes to a complete ecosystem. Current laws were crafted based on the idea of separate financial jurisdictions, each with its own set of laws and rules.
As demand for DeFi grows, concerns arise over who is responsible for investigating financial crimes that occur across borders. Who would enforce the regulations, and how would they enforce them? Other concerns include system stability, energy requirements, carbon footprint and hardware failures.
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Coin98 integrates Umee, offering a connection to cross-DeFi waves
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To kick-start the Evmos ecosystem at Midas Capital launching Diffusion pool. Users will be able to leverage various LP tokens to collateralize their positions, enable various strategies and...
Pods secured a $5.6M investment to create Structured Products for crypto assets. The financing had investors such as IOSG, Tomahawk, Republic, Framework Ventures, 4RC, Alexia Ventures, and...
ORBS collaborates with Orbit Chain making ORBS tokens available on Ton Blockchain via Orbit Bridge. In addition, Megaton Finance has announced Orbs as an official launch partner to its much...
Hedgey Finance has integrated with OKC as financial infrastructure for DAO treasuries and helps OKC projects diversify assets & more.
DAOs Compensate on Hedgey
Through...
Kava has partnered with the popular cryptocurrency trading platform Bitget, empowering new Web3 users with seamless crypto access. The partnership includes the KAVA token listing on...
Axelar $60M Ecosystem Funding has been launched to support early projects who can lead Web3. As an infrastructure project providing secure interchain communication, Axelar sees some of the...
GameFi partners with BNB Chain to innovate the Web3 gaming industry. The Web3 game market has been strongly affected as well. A great number of games and metaverse projects have gone into...
DoraHacks funding public goods with Injective. The Dora Factory community and DoraHacks are proud to announce a strategic partnership with the Injective team to help support the growth...
Meld partners with Kyber Network to improve user experience and enable seamless asset exchange. As a decentralized lending and borrowing protocol, MELD is always looking for ways to improve...
Glitter and Penguin Finance collaboration has been announced. This partnership will obtain Protocol-Owned Liquidity for Bridged Assets through the Utilization of Bonding. Glitter will be...
Tokenik partners with UniLend a multichain permissionless Lending & Borrowing protocol for all ERC20 tokens. UniLend is developing a Futuristic Base Layer for all DeFi applications.
In...
EYWA, a new decentralized cross-chain interoperability protocol, is now live on Ethereum Virtual Machine (EVM) Aurora.
From today, users will be able to transfer any asset between any...
Blueshift & Multichain partnership is exciting for Algorand & Kava as it allows for new channels liquidity can move into ecosystems.
With the recent launch of the Blueshift DEX to...
Orbs Network Proposal Live. The action has been made to compensate the users of FTX Exchange. The Orbs project is in the midst of formalizing its community governance. It includes...
Beosin signed a strategic partnership agreement with local Korean blockchain accelerator company Magnet Ventures.
Through this agreement, Magnet Ventures will help Beosin enter the Korean...
Global fiat ramp provider Transak now supports FUSE Network. The supported crypto assets on Fuse are $FUSE and $USDC. The fuse team has been making much progress lately concerning making...