DeFi Archives - Fintech News

Escaping the casino: How tokenized assets will save DeFi from itself

Horacio — Fri, 07 Feb 2025 13:42:10 +0000

Ethereum Co-Founder Vitalik Buterin recently created a ripple on crypto twitter writing that DeFi “feels like an ouroboros [a snake eating its own tail]: the value of crypto tokens is that you can use them to earn yield which is paid for by… people trading crypto tokens.”

He went on to note that “while defi may be great it’s fundamentally capped and can’t be _the_ thing that brings crypto to another 10-100x adoption burst.”

Vitalik isn’t wrong.

The ethos of decentralized finance (DeFi) is the belief that a blockchain-based financial system will free society from rent-seeking intermediaries and make financial services accessible to the globally unbanked.

And yet, it’s not hard to miss that much of what is considered “DeFi” today really just feels like a circular casino that facilitates speculation on tokens whose value is primarily derived from monetizing token speculation.

It is not sacrilegious to acknowledge this fact, nor is it to accept that this current version of DeFi is clearly not sustainable. There is only so much demand for circular token speculation and there isn’t an infinite amount of retail capital to burn.

DeFi in its current state is not the catalyst that will scale crypto adoption beyond current levels, but that doesn’t mean the creation of an on-chain token casino was all for nothing.

DeFi, in its current form, has proven that an on-chain financial system can be created that provides all the core primitives that an open, globally accessible, and robust financial system would require: payments, swaps, lending, derivatives, insurance, and much more.

The infrastructure and protocols that underpin DeFi do indeed reduce counterparty risk and costs, while increasing transparency and accessibility — even if the initial product-market fit amounts to little more than token gambling.

So how can DeFi overcome its circular token gambling obsession and play its proper role in scaling crypto adoption?

Tokenized assets

At their most basic level, blockchains are the superior method of issuing, transferring, and tracking assets via the creation of digital tokens. Finance revolves around asset management, making DeFi the most tangible, obvious growth opportunity for crypto.

But, to grow, the DeFi economy needs access to more assets that can be represented as tokens. While cryptocurrencies have gotten DeFi to where it is today, evolving beyond the casino-stage means seeking out where most of the capital in the world resides. And the answer is blindingly obvious.

Tokenizing all the assets within the traditional financial system — bank deposits, commercial paper, treasuries, mutual funds, money market funds, stocks, futures, options, swaps, etcetera — would bring hundreds of trillions of dollars worth of capital on-chain.

One single firm, BlackRock, manages nearly five times more assets ($10.5 trillion) than the market capitalization of the entire crypto market ($2.2 trillion).

This is capital that can then be seamlessly plugged into existing on-chain finance protocols, in effect hotswapping token gambling with real-world financing. Far from just a pipedream, many of the world’s largest financial institutions are actively positioning themselves for a future where tokenization is the status quo.

In less than half a year, BlackRock’s tokenized fund on Ethereum, BUIDL, has exceeded $500 million AUM, bringing the total value of tokenized government securities on public blockchains to over $1.5 billion. While this amount is a small fraction of the value contained in the traditional system, the active participation of the world’s largest asset manager within a public blockchain ecosystem speaks volumes.

Furthermore, stablecoins have proven that the demand for tokenized assets is overwhelmingly real. With over $150 billion of U.S. dollars tokenized on-chain, and monthly transfer volume of $1.4 trillion, stablecoin usage now rivals that of established payments networks such as Visa. While not often thought of as a tokenized asset, the only difference between Circle’s USDC and BlackRock’s BUIDL is who receives the yield.

Stablecoins highlight the core value of tokenization as they allow anyone to transfer dollars to anyone else in the world with just an internet connection. Transactions are settled in under a second and for less than a penny in fees. For anyone in a country with a hyper-inflating currency, who has tried to make a cross-border remittance payment, or simply wants to make a financial transaction on a weekend or holiday, the benefits of stablecoins are immediately obvious.

While DeFi’s token gambling won’t ever completely disappear, it is clear that the underlying infrastructure that currently enables DeFi will come to define the way the world economy operates. The path forward comes from embracing a simple fact: tokenized assets are a superior way to represent financial assets.

Link: https://www.coindesk.com/opinion/2024/09/04/how-ethereum-20-can-transform-defi/

Source: https://www.coindesk.com

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Why DeFi will benefit from trade wars

Horacio — Wed, 05 Feb 2025 22:42:29 +0000

In the short-term, the crypto market will be negatively impacted by increased volatility in global trade, says ML Tech’s Leo Mindyuk. But over time, crypto will be less impacted than traditional finance.

By Leo Mindyuk

Bitcoin (BTC) tumbled over the weekend, sinking well below the $100K mark as markets reacted to the latest escalation in the U.S. trade disputes. The broader digital asset market followed suit, leading to one of the most significant sell-offs since the outbreak of Covid and the collapse of FTX. Specifically, President Donald Trump announced sweeping new tariffs of 25% on imports from Canada and Mexico and 10% on Chinese goods.

Canada and Mexico initially retaliated but have since reached deals to delay the imposition of U.S. tariffs, while China has announced its own tariffs against U.S. goods. The developments have increased global economic uncertainty and sent risk assets into a temporary free fall.

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As global economies wrestle with trade disputes, crypto markets face ripple effects in the form of price volatility, mining disruptions and regulatory challenges. But could these tensions also fuel the rise of decentralized finance? Let’s explore how tariff wars could shape the future of crypto.

Market volatility: a double-edged sword

Tariff wars create uncertainty in traditional markets, often driving investors toward alternative assets like bitcoin, ether and other cryptocurrencies. During economic turbulence, crypto is sometimes seen as a “safe haven” similar to gold. However, even as institutional adoption of crypto grows, digital assets remain highly speculative. In the short term, the crypto market will be negatively impacted by increased volatility in global trade, with sudden surges or dips influenced by shifting trade policies — but over time, crypto will be less impacted than traditional finance.

Mining disruptions

Crypto mining relies heavily on specialized hardware, much of which is produced in countries like China. Tariffs on electronic components, semiconductors and mining rigs can drive up production costs and reduce profitability. Additionally, increased expenses could push smaller miners out of the market, potentially leading to greater centralization of mining power among major players with the resources to weather these financial storms.

Regulatory uncertainty and compliance hurdles

Tariff wars don’t just impact physical goods; they can also influence financial regulations. Governments engaged in tariff wars may use financial regulations as an additional tool to assert control. Increased scrutiny of international crypto transactions, exchanges and cross-border payments could lead to stricter compliance requirements. This, in turn, could slow adoption rates and make crypto less accessible, particularly in regions where trade restrictions are tightening. At the same time, heightened regulations may push some users deeper into decentralized finance (DeFi) platforms, which operate outside traditional banking systems.

Shift towards decentralized finance (DeFi)

As trade conflicts heighten distrust in traditional financial systems, decentralized finance (DeFi) may offer users a way to bypass some of the barriers imposed by tariffs and regulations. More users may turn to DeFi platforms for financial autonomy. DeFi applications allow for peer-to-peer transactions without intermediaries, reducing reliance on traditional banking, which is often impacted by trade policies. If tariff wars continue to disrupt traditional trade channels, crypto-based financial solutions could see increased adoption.

Conclusion

While crypto is often seen as a hedge against economic instability, it is not immune to the effects of tariff wars. From increased volatility and mining costs, to regulatory shifts and the potential rise of DeFi, the trade conflicts of today could shape the digital economy of tomorrow. While crypto may face new hurdles in the short term, it will emerge stronger in the long term as global markets seek an alternative to traditional finance amidst global governments’ ongoing economic battles. Investors, miners and policymakers should keep a close eye on trade developments as they navigate the complex relationship between geopolitics and digital assets.

Link: https://www.coindesk.com/coindesk-indices/2025/02/05/why-defi-will-benefit-from-trade-wars?utm_source=pocket_shared

Source: https://www.coindesk.com

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Three ways DeFi will revolutionize financial services

Horacio — Tue, 04 Feb 2025 08:47:10 +0000

It’s widely accepted that our current banking system has significant flaws. Beyond systemic and geopolitical risks — like restricted borders, time zone barriers, and central bank dependencies — there are challenges with bank wires, international settlements, and the inconsistent availability of credit. A fundamental issue lies in the mismatch between banks’ balance sheets and their leverage. When a bank faces liquidity or insolvency issues, as seen with First Republic and Silicon Valley Bank in March 2023, depositors risk becoming creditors in a bankruptcy unless the government intervenes — leaving taxpayers to cover the fallout.

This fragility has led to growing interest in decentralized solutions from both retail investors and institutions. By removing human error and poor decision-making from the equation, Decentralized Finance (DeFi) offers a compelling alternative. We believe DeFi has the potential to fundamentally transform how we transact, bank, borrow, and invest.

Here are three emerging ways in which DeFi is poised to create a future where financial services are digital, open, always-on, and borderless.

1. Tokenization of real-world assets

The tokenization of real-world assets, such as real estate, fiat currencies, or bonds, is becoming a key trend. These tokenized assets can act as collateral in next-generation DeFi lending markets. Bitcoin and Ethereum, for instance, are considered pristine collateral because their use can be automatically governed by smart contracts without needing a third party, like a court, to adjudicate disputes.

Tokenizing physical assets like real estate or government bonds creates similar opportunities, although it requires oracles to provide real-world pricing and cash flow data. As this ecosystem evolves, individuals and institutions will increasingly use a broad range of tokenized assets to access lending services, unlocking liquidity and expanding borrowing options across global markets.

2. Always-on lending marketplaces

DeFi protocols are creating 24/7 marketplaces for lending, borrowing, and asset swapping. These platforms operate continuously, allowing users to lend assets like Bitcoin, Ethereum, and USDC, and earn yield in return. In the future, we expect to see tokenized assets such as government bonds and real estate added to these pools.

Unlike traditional markets, where hidden leverage and rehypothecation, the risky banking practice of lending out your assets multiple times,can create systemic risks, DeFi’s transparent smart contracts ensure that collateral is clearly managed, reducing counterparty risks. A growing number of Bitcoin holders are utilizing technologies like wBTC (wrapped Bitcoin) to borrow stablecoins on markets like Aave without selling their Bitcoin, maintaining exposure to its price appreciation.

In this setup, loans are secured by digital collateral, and if the value of the collateral decreases, the borrower either adds more collateral or risks liquidation — ensuring a healthier lending environment without the opaque risks present in traditional finance.

3. Becoming your own bank

Perhaps the most revolutionary aspect of DeFi is the ability for individuals to become their own banks. Throughout history, we’ve seen multiple banking crises — from the savings and loan crisis to the 2008 financial meltdown, and most recently, the 2023 crisis caused by rising interest rates. Historically, during times of instability, savers moved their wealth into physical cash outside the banking system.

Today, DeFi offers a modern solution. Advanced multi-party computation (MPC) wallets allow users to store and manage their assets securely, with on-chain verification ensuring they retain control. Individuals can now store value in stablecoins, invest in digital assets, and access decentralized lending and borrowing services — all without relying on traditional banks.

With tools like separately managed accounts (SMAs), users can hold their assets in their own digital vaults, free from the balance sheet risks of banks. This level of autonomy mirrors traditional financial strategies but extends them to the realm of crypto, giving people unprecedented control over their financial future.

Conclusion: A decentralized future

In the coming decades, DeFi will become the backbone of financial services. The term “DeFi-based banks” may fade away as it becomes the standard infrastructure for financial services. In this world, tokenized real-world assets will unlock new possibilities for borrowing and lending, decentralized platforms will provide always-on banking services, and individuals will have the power to be their own banks — maintaining full ownership and control over their assets.

If we want a future where financial services are transparent, secure, and democratized, we must pay attention to the innovations taking place in DeFi today.

Link: https://www.coindesk.com/business/2024/09/18/three-ways-defi-will-revolutionize-financial-services/?utm_source=pocket_saves

Source: https://www.coindesk.com

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How Ethereum 2.0 can transform DeFi

Horacio — Tue, 14 Jan 2025 07:10:02 +0000

The SEC’s decision in June to drop charges against Ethereum was a milestone in the platform’s journey toward maturity and greater acceptance in the financial world.

For those who didn’t follow the case, the SEC believed ether (ETH) was sold as an unregistered stock, with concerns that it was being sold without following certain rules and protocols. However, Ethereum’s proponents argued that, since the network is decentralized, it does not meet the criteria of an investment contract or security.

While the SEC may have decided against direct legal action, it did open the door for further discussions around centralization. Some technological aspects of Ethereum’s architecture have stimulated an important dialogue around contracting power among influential entities. While these discourses are mainly internal, addressing these concerns can enhance the network’s upgrade goals and support true decentralization.

This is especially true as the network tries to embody the ideals of “Ethereum 2.0,” the stronger, more accessible, and more practical version of its token and infrastructure. Some say it’s already here, while others point out gaps that still need to be filled to definitively claim its arrival.

Yes, Ethereum 2.0 holds significant potential for transforming DeFi and the broader ecosystem, but we can’t just have a foot halfway through the door. To reach its full potential, key developments still have to be reached.

Validator centralization

By transitioning to a proof-of-stake (PoS) mechanism in September 2022, Ethereum now allows validators to stake ETH, with large stakes increasing validation chances and rewards. This upgrade clearly underscores Ethereum’s key role in DeFi by sparking countless innovative financial tools being created on the network for lending and trading, among other use cases.

However, emphasizing token ownership over the number of validators could potentially concentrate power among smaller groups, going against crypto’s ethos of decentralization. Moreover, staking requires an input of 32 ETH, meaning that validators with significant ETH staked can wield disproportionate influence over network governance and decision-making processes. This creates a feedback loop that favors certain participants, and can lead to power and wealth accumulating in the hands of a few individuals.

In March, Vitalik Buterin even expressed his concerns about “lazy stakers,” or those who engage solely in staking pools rather than solo staking — clearly indicating the relevance of the centralization issue.

At its core, Ethereum represents a shift in the way financial services are designed, accessed, and utilized. However, relying on a few entities continues to introduce risks and questions about how decentralized Ethereum 2.0 really is.

Shifting gears to DeFi

Ethereum’s path towards centralization sets the stage for more severe complications down the line — namely with regulators and reduced network resilience. Ultimately, Ethereum’s future within DeFi and the blockchain ecosystem as a whole hinges on balancing technical advancements while limiting centralization wherever possible. And there are ways to make it achievable.

If implemented correctly, concepts like rainbow staking could further enhance Ethereum’s adaptability while also combatting centralization. In essence, rainbow staking allows users to stake ETH across multiple pools and strategies simultaneously, effectively creating a “rainbow of rewards”, so to speak, that stakers receive while mitigating anti-competitive risks and building a more resilient ecosystem. The ETH validation process is separated into “heavy” and “light” staking — with “heavy” focusing on validation services for finalization and “‘light” staking zeroing in on censorship resistance of transactions.

For example, liquid staking protocols like Lido or Rocket could offer heavy service staking, while existing stakers can opt to run light service operators. Rainbow staking will eventually result in a more efficient and competitive network while granting more liquid staking provider diversity. However, executing it won’t be easy and could add confusion to the overall staking structure.

Beyond rainbow staking, Ethereum could leverage network-wide advancements already introduced in its initial 2.0 updates, like sharding. While sharding has been scrutinized for its security issues, justifying the shift to Layer 2 and zero-knowledge developments, that doesn’t mean the technology should be outright abandoned.

We have seen evolutions here thanks to developments like “danksharding” specifically for Layer 2s. Danksharding involves proposer-builder separation (PBS), a deviation from how Ethereum validators function now — proposing and broadcasting blocks entirely on their own. Instead, PBS shares the love and splits up these tasks among multiple validators.

Ultimately, danksharding helps implement data availability, allowing validators to verify blob data quickly and efficiently, while simultaneously identifying missing data.

The aim here is to make transactions on Layer 2 as cheap as possible for users and scale Ethereum to validate over 100,000 transactions per second. This would allow dApps such as Uniswap to process transactions at a significantly lower cost with quicker transaction approval times.

However, danksharding’s highly technical infrastructure and implementation leave out smaller rollups and potentially encourage centralization. So, while the technology has fallen out of favor as is, its benefits in reducing hardware and helping scalability show that the technology itself could be improved upon to benefit the next generation of Ethereum. Perhaps an Ethereum 3.0.

Ethereum 2.0’s significant strides in the regulatory and decentralization arenas shouldn’t be ignored. Reducing the network’s reliance on small groups of actors for network operations and legal wins are all positive steps forward. However, the next phase of Ethereum as a network must include adapting to evolving legal requirements to firmly establish itself as a transformative force in DeFi and mainstream blockchain usage alike.

Despite these hurdles, Ethereum 2.0’s current achievements have set the ecosystem on the right path. By focusing on the future and reaffirming a commitment to decentralization, Ethereum has the force behind it to maintain a dominant role as an innovator in the blockchain landscape.

Getting its affairs in order is just a small part of cementing its legacy.

Link: https://www.coindesk.com/opinion/2024/09/04/how-ethereum-20-can-transform-defi/?utm_source=pocket_saves

Source: https://www.coindesk.com

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DeFi champions of 2025: Rollblock, Uniswap, and Solana gear up for dominance

Horacio — Thu, 09 Jan 2025 00:09:14 +0000

Since its inception, DeFi has always had the redefining moment with innovation at the helm. The momentum into 2025 is no different! The seismic shift had positioned Uniswap, Solana, and Rollblock as the industry giants to watch out for this year. Recent news highlighted Rollblock as the digital entertainment stalwart. Uniswap’s monumental upgrade and Solana’s institutional adoption propel them into the DeFi limelight. Buckle up as we explore the revolutionists that will take DeFi to the next level in 2025.

Rollblock: Supercharging decentralized iGaming with GambleFi innovation

Rollblock is taking the iGaming world by storm with its groundbreaking GambleFi model, offering a unique blend of blockchain transparency and lucrative investment opportunities. This online crypto casino has quickly captured the attention of seasoned investors and newcomers alike, thanks to its blockchain-based iGaming ingenuity that blends DeFi with traditional gambling.

The vision to bring about a fairer and more transparent iGaming experience has now become a tangible reality. Players can enjoy a wide array of games with the confidence that the platform’s blockchain-based immutability and distributed ledger technology guarantee integrity and fairness.

But the key feature that has been attracting investors to its ongoing presale is the chance to rewrite their financial freedom with this DeFi platform’s income streams. The revenue-sharing model guarantees weekly income, while the staking yield offers mouthwatering APY. Rollblock’s deflationary tokenomics and focus on community also position it for massive success this year.

Uniswap: V4 launch update set to ignite UNI price supercycle

Uniswap’s innovative AMM DEX has given everyone an impressive outlook for a user-friendly and better DeFi. 2025 is looking even more promising, with the excitement around its V4 launch reaching a fever pitch. Scheduled for release in the third quarter of 2025, V4 promises transformative features, including swap-enhancing “HOOKS,” dynamic fees, and gas savings for users.

Experts predicted the enhancements could fuel the UNI price supercycle on the price chart. Recent bullish momentum supports the outlook – price surged 15% recently, and trading volume leaped 60%. With a trading volume exceeding $26 billion and the upcoming Unichain Layer-2 solution, Uniswap is solidifying its position as a dominant force in the DeFi sector.

Solana price soars as Bitcoin dominance wanes. Altcoin season begins?

Solana has also been making serious waves as the future of innovative and scalable DeFi and dApp development. The institutional interest this altcoin is getting amid ETF speculations has helped Solana’s price maintain its bullish momentum. This came at the heels of Bitcoin’s Market Dominance (BTC.D), which has dropped 3% in less than a month.

The capital outflow from Bitcoin to altcoins is a telltale sign of an emerging “altcoin season,” and Solana price is riding the wave perfectly. Solana’s price has regained the $215 mark with a fresh 13% surge. In fact, TVL has climbed 217% to 44.21M SOL, the highest since December 2023. Right now, experts, including Real Vision CEO Raoul Paul, are “stupid bullish” on Solana’s long-term prospects.

Conclusion

The DeFi landscape is experiencing transformative innovation and massive opportunities. However, it’s the new Rollblock GambleFi and its paradigm-changing ingenuity for iGaming that’s attracting investors.

The presale is still on, and it’s unbelievably underpriced—just $0.0445. This trio is leading the race for a new DeFi perfectly.

Link: https://www.analyticsinsight.net/cryptocurrency-analytics-insight/defi-champions-of-2025-rollblock-uniswap-and-solana-gear-up-for-dominance?utm_source=pocket_saves

Source: https://www.analyticsinsight.net

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The future of finance? TradFi plus DeFi

Horacio — Wed, 18 Dec 2024 09:05:54 +0000

Leaders on both sides of the divide will need to develop new skills to fully harness new tech innovations

BY RITA MARTINS/

The blockchain industry started as a revolutionary response against traditional finance and social norms. The first block of Bitcoin even contained this message — “The Times 03/Jan/2009 Chancellor on brink of second bailout for Banks” — a reference to the British government’s potential bailout of banks right after the 2007–2008 financial crisis. It’s a message that clearly underscores Bitcoin’s anti-establishment beginnings.

It’s then unsurprising that both worlds were initially built separately. In the early days, only a few traditional finance leaders explored blockchain and digital asset opportunities. Their teams were small and operated in siloed environments from the core organization. At the same time, a new breadth of leaders were quietly building what is nowadays called decentralized finance.

However, as time progressed, a fascinating shift occurred. Both worlds, once distant, started to become increasingly interested in each other, exploring concepts and innovations. Regulators started testing AMMs (automated market makers, a DeFi innovation) for traditional cross-border payments under Project Mariana. Stablecoins pegged to fiat — an innovation from the DeFi world that leveraged the stability of traditional finance — emerged and were used for traditional remittances in emerging markets.

Today, the landscape has dramatically changed. Traditional finance players are no longer passive observers, but are instead active participants in blockchain innovation. BlackRock’s CEO, for instance, has been vocal about the potential opportunities in tokenization. His words were backed by actions, including the issuance of a bitcoin ETF, the launch of a tokenized fund, BUILD, and investment into Securitize (a tokenization platform).

On the DeFi front, many protocols are considering, or have already registered, as entities to engage with traditional finance. While regulations do not currently cover DeFi projects, this will change soon to require such projects to adopt more stringent controls, checks and risk management practices. Soon, DeFi projects may have to run and operate closer to traditional finance more so than they envisioned under plans of decentralization and openness.

Unquestionably, both worlds are getting intertwined. The future of finance will be a convergence of traditional finance and DeFi.

Blockchain infrastructure will be used by a number of banks, asset managers, insurers and exchanges. Cryptocurrencies will be considered a new investment asset class held as an investment or even built into pension funds. Tokenized assets will be traded on blockchain and used as collateral for loans and other financial needs. Most individuals won’t even know if they are using blockchain or not, the same way they don’t know if their bank is using cloud or on-premise solutions.

Blockchain will simply become another technology in the financial industry toolkit alongside AI, cloud, robotic process automation and quantum computing. And as this integrated world evolves, traditional finance leaders will need to develop technology skills to harness new innovations and technologies fully, while DeFi leaders will need to gain a deeper understanding of finance regulation, risk management and compliance.

Although the future may not look like the original vision of decentralization and disruption, the reality is that blockchain and crypto have already accomplished so much in finance. DeFi and blockchain pioneers were able to challenge the concept of money with the introduction of cryptocurrencies and stablecoins, even upsetting traditional corporate hierarchies with the introduction of decentralized governance models like DAOs.

It’s clear that the convergence between traditional finance’s regulatory framework and finance expertise — combined with the groundbreaking inventions pioneered in DeFi — will continue to drive innovation and efficiency in the financial services landscape.

Link: https://blockworks.co/news/future-finance-tradfi-plus-defi?utm_source=pocket_shared

Source: https://blockworks.co

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DeFi vs Crypto: What sets them apart

Horacio — Fri, 13 Dec 2024 11:11:03 +0000

By Nastassia Chigir

Decentralized finance and cryptocurrencies are tightly linked, yet they each play distinct roles within the blockchain world. Curious about the difference? Let’s break it down.

What is cryptocurrency? And what is DeFi? Crypto vs DeFi.

Cryptocurrency explained

Cryptocurrency is a virtual currency, serving as an alternative to fiat money. Essentially, it’s code generated through complex computer-based mathematical calculations. Cryptocurrencies operate on blockchain technology — a database structured as a chain of blocks, each containing transaction information. Cryptocurrencies don’t have a central authority managing or regulating their value. Instead, everything runs through a decentralized network of users online.

Decentralized finance explained

DeFi represents a completely new financial system, akin to traditional banking but built on public blockchains. With DeFi, you can do a lot of what you’d normally do with a traditional bank, like earning interest on your deposits, taking out loans, borrowing money, getting insurance, and trading cryptocurrency derivatives.

Decentralized finance vs crypto: core differences between DeFi and cryptocurrency

What is the difference between DeFi and crypto?

Purpose and use cases

Crypto. Today, people use cryptocurrencies in many ways. You can spend them on services and products if the seller is open to it, and they’re also relatively easy to exchange for dollars, euros, and other currencies. However, many people view digital coins more as investment assets, similar to stocks or precious metals, rather than just a purchase method.

DeFi. DeFi opens up a world of innovative financial services, making it easier for people to manage their money in new ways. For example, trading cryptocurrencies on DeFi platforms often means lower fees than traditional methods. With DeFi, you can do much more than just trade crypto; you can also lend money, either earning interest on what you lend or borrowing funds when you need them. Plus, you can save your money in interest-bearing accounts, helping it grow over time.

Ecosystem and components

What are the main components of DeFi and crypto?

Crypto

Here are the key components of cryptocurrencies:

Blockchain technology. Think of blockchain as a digital ledger that tracks all cryptocurrency transactions. It’s a secure and open way to see who owns what and ensure everything’s above board.
Cryptographic security. This is the tech that keeps your transactions safe and your data private. It also means you don’t need to rely on a middleman to manage your money.
Decentralized ledger. Picture a public record that’s spread across many computers. It keeps tabs on digital assets like cryptocurrencies and NFTs, making sure they’re tracked securely and transparently. This system is also handy for things like supply chain tracking, managing medical records, and even voting.

DeFi

Here’s a simple rundown of the main components of DeFi:

Blockchain. Most DeFi action happens on the Ethereum blockchain, which is where this whole movement started.
Crypto assets and tokens. Think of BTC and ETH as the core players in the DeFi game. They’re essential to how the system operates.
Digital wallets. These are like your online bank accounts for cryptocurrencies. They keep your digital assets safe and secure, typically protected by private keys.
Smart contracts. Imagine these as self-executing agreements that automatically do what they’re programmed to do when certain conditions are met. They’re the backbone of many DeFi services.
Stablecoins. These are digital coins designed to hold steady value, usually pegged to traditional currencies or commodities. They help keep things stable amidst all the crypto volatility.

Link: https://crypto.news/defi-vs-crypto-what-sets-them-apart/?utm_source=pocket_shared

Source: https://crypto.news

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The Binary Holdings secures $5 Million from ABO Digital to Fuel Expansion of their Decentralized Network Towards One Billion Users by 2025

H. — Fri, 13 Dec 2024 07:33:13 +0000

The Binary Holdings, a $16.9 billion technology leader, has announced a strategic investment of up to $5 million from ABO Digital, a digital asset investment firm providing alternative financing solutions to cryptocurrency projects around the world. This investment will power The Binary Holdings to accelerate its mission of transforming the global digital economy. With a robust user base of 169 million across multiple verticals, The Binary Holdings is reshaping how businesses, consumers, and investors interact in the digital landscape, and is targeting one billion users by 2025. This collaboration will drive the expansion of a decentralised open network that seamlessly integrates with Web2 infrastructure while unlocking the full potential of Web3, empowering businesses and users to benefit from digital services such as cross border payments, gaming, digital social and other compelling services.

The Binary Holdings has established itself as a central player in decentralised connectivity, working with a range of partners, including major telecom providers, to redefine how people and businesses interact across regions. Through contracts with seven leading telcos and a growing network of non-telco partners, The Binary Holdings is setting a new benchmark for global interoperability in digital commerce. At the centre of the Decentralised Open Network for Distribution and Commerce is The Binary Network, where users, businesses, and service providers can seamlessly connect and transact across borders.

By using BNRY, the network’s single digital currency, The Binary Network is redefining the way value flows between participants, ensuring that payments are frictionless and accessible to users worldwide. This bold vision of using a single digital currency across its vast ecosystem enables true interoperability and cross-pollination amongst its diverse range of partners in both the telco and non-telco sectors, allowing for commerce to flow in a way that was previously unimaginable, eliminating the barriers between platforms and national borders.

The platform’s ability to facilitate seamless transactions and interactions across multiple industries has already garnered attention from some of the world’s largest companies. With contracts signed with seven major telcos, The Binary Holdings is on track to reach 1 billion users by December 2025, becoming a true global player in the decentralised economy.

Introducing Millenia – digital bank for seamless cross-border transactions

In Q2 2025, The Binary Holdings will launch Millenia, a digital bank aimed at simplifying cross-border payments and remittances for users within The Binary Network. Designed to empower seamless transactions for individuals and businesses, Millenia will offer a low-cost, fast, and transparent service powered by the secure decentralised and interoperable infrastructure of The Binary Network, with BNRY as the primary transaction digital currency.

Supporting multi-chain compatibility and global dApp growth

The Binary Holdings’ blockchain infrastructure is gaining strong traction among dApp developers. Through partnerships with over seven Layer 1 and Layer 2 blockchain networks, The Binary Holdings has created unique bridges which provide dApps immediate access to Binary’s expanding user base of 169 million, projected to reach one billion by 2025, creating unmatched engagement and utility.

By bridging Web2 and Web3, The Binary Holdings addresses a key challenge in the sector, accelerating Web3 adoption at scale and establishing itself as a leader in building tangible utility and mass adoption.

“The Binary Holdings is at the forefront of creating a new global standard for digital distribution and commerce,” said Siddharth Sahi, CBO, The Binary Holdings. “With the launch of the Binary Digital Bank, support from ABO Digital, and an expanding network of partners, we’re excited to continue pushing boundaries and bringing innovative solutions to our global community.”

A tech powerhouse in Southeast Asia and the Middle East and a global leader in the digital economy through mass adoption

The Binary Holdings is rapidly establishing itself as one of the region’s most valuable and innovative tech companies, with a valuation of $16.9 billion. With strong partnerships, an expanding user base, and a commitment to essential infrastructure, The Binary Holdings is on track to become a global digital economy leader. Its blockchain technology drives innovation in decentralized finance (DeFi), NFTs, gaming, and digital commerce at scale, building a robust ecosystem that redefines business, payments, and global interactions.

“We are excited to collaborate with The Binary Holdings at such a pivotal time in the evolution of the digital economy” said Talal Samy, Investment Associate at ABO Digital. “The company’s ability to innovate, scale, and bring real-world solutions to a global audience is unmatched. Their groundbreaking work in creating seamless global interoperability and fostering mass adoption of decentralised technologies aligns perfectly with our mission, and we are proud to support them as they continue to shape the future of Web3.”

With ABO Digital’s support and its expanding ecosystem and through real-world applications, from digital payments to cross-border commerce, The Binary Holdings is pushing Web3 and blockchain into the mainstream.

About ABO Digital

ABO Digital is an investment firm providing alternative financing solutions to cryptocurrency projects around the world. It is part of the Alpha Blue Ocean group, a pioneering multi-family office renowned for its leadership in alternative finance and innovative investment strategies. With a global presence and a commitment to supporting groundbreaking projects, ABO Digital has established itself as a driving force in fostering technological advancements and sustainable growth across various sectors, including health, medical innovation, and now, blockchain technologies.

About The Binary Holdings Limited

Headquartered in Dubai, UAE, and with a global user base of 169 million, The Binary Holdings Limited is a leading decentralised technology company committed to creating open, interoperable networks for digital commerce. By 2025, it aims to empower a billion users worldwide with secure, scalable blockchain infrastructure.

The post The Binary Holdings secures $5 Million from ABO Digital to Fuel Expansion of their Decentralized Network Towards One Billion Users by 2025 appeared first on Fintech News.

The future of DeFi: 9 revolutionary Cryptocurrencies you don’t want to miss!

Horacio — Fri, 29 Nov 2024 14:22:56 +0000

As it couldn’t be any other way, within the cryptocurrency industry there is a growing number of people and community members interested in finances and how to increase their wealth outside the traditional centralized system governed by banks and financial institutions.

In this article, we dive into eight cryptocurrencies that have the potential to disrupt the traditional financial industry and build the DeFi landscape.

Everlodge (ELDG), democratizing vacation rental properties

Who hasn’t seen those social media videos of influencers staying over dreamy destinations in luxurious properties? You may not be able to afford to stay there now, but you could invest in those properties. That is the proposal of Everlodge, a new DeFi project that aims to disrupt the profitable vacation rental market by making it more accessible to everybody, no matter how wealthy that person is.

By minting NFTs for the value of those properties and fractionalizing them in equally valued fractions of $100, anyone with some spare funds can invest in these properties and earn interest from it, putting their money to work instead of sitting in the bank account. Currently, in stage seven of the presale, ELDG tokens can be acquired at only $0.025.

Lido (DAO), investing without selling your digital assets

Lido is a Decentralized Autonomous Organization (DAO) and Liquid Staking protocol that is used by node operator partners to validate the infrastructure on the Ethereum, Solana, and Polygon blockchain.

Lido is a solution that enables users to earn a yield on staked assets without investing their capital for long periods. Furthermore, Lido is the largest DeFi protocol by total value locked (TVL) with more than $8 billion in assets in the platform.

Essentially, Lido enables users to leverage their staked coins without selling them by wrapping the asset and providing a derivative that is used as collateral by the underlying asset. As a result, investors can access the funds when they need it and earn yield while they wait.

Aave, borrowing with over-collateralized loans

Aave is a decentralized finance protocol that works similarly to traditional finance markets in terms of borrowing and lending. By using Aave, users can borrow crypto assets through over-collateralized loans, meaning that users will need to deposit more crypto worth than the amount they need to borrow. In this way, lenders are protected against the loss of all the money due to loan default and allow Aave to liquidate the collateral if it drops too much in value.

Additionally, Aave has launched Flash Loans, a tool that allows users to obtain quick loans without using a collateralized asset. Flash Loans are a feature that allows one to borrow any available amount of asset without using collateral, as long as the liquidity is returned to the blockchain protocol within one block transaction.

UniSwap, a peer-to-peer cryptocurrency exchange

UniSwap is one of the top decentralized cryptocurrency exchanges in terms of transaction volume and a pioneer in decentralized finance. UniSwap allows peer-to-peer market making, meaning that the platform enables users to trade cryptocurrencies without a third party as an intermediary.

The UniSwap blockchain is hosted on the Ethereum platform and governed by UNI holders. Besides, the Uniswap blockchain uses an open-source protocol, meaning that anyone can view and contribute to the blockchain’s code.

Therefore, Uniswap is a completely different type of exchange because it is not owned and operated by a single entity – like Binance – and uses a new type of trading model called Aumated Liquidity Procotol. So, the difference is that centralized exchanges charge higher fees for trading and are more profit-driven. Furthermore, because it does not belong to one entity, users keep control of their funds at all times and they do not need to give up their private keys. By retaining control of their keys, investors are prevented from losing their assets if the exchange is hacked.

According to the latest data, Uniswap is the fourth-largest DeFi platform and has over $3 billion worth of crypto assets locked away on its protocol.

Avalanche, Ethereum’s main competitor

Avalanche (AVAX) is a blockchain platform and cryptocurrency that aims to compete with Ethereum. The main difference between Ethereum and Avalanche is that the last one was built and developed to provide instant transactions. Avalanche is used to pay transaction processing fees and secure the Avalanche network.

As Ethereum, Avalanche uses smart contracts to support a variety of blockchain projects and enables the development of decentralized applications (dApps). The network is capable of processing up to 4,500 transactions per second and this allows it to scale more effectively than Ethereum. Furthermore, Avalanche is creating a bridge to the Ethereum network, which will enable users to transfer assets between the two chains without delays.

Launched in 2020, it aims to be fast, versatile, secure, affordable, and accessible. Like UniSwap, Avalanche is an open-source project, so everyone can view and contribute to the platform’s development.

MakerDAO, using its stablecoin to lend money

MakerDao or the Maker Protocol is an open-source, Ethereum-based platform whose crypto coin is the Dai stablecoin, which, aside from ETH, is the most used crypto asset in the DeFi ecosystem. The project offers crypto lending and borrowing by using its collateralized stablecoin, Dai.

MakerDAO is different from the other projects we have seen until now. What MakerDAO has done is adapt the traditional central banking model to the blockchain and open the governance of its blockchain only to a network of token holders.

It allows users to lend themselves digital money in the form of its stablecoin DAI. By locking up some ETH in MakerDAO’s smart contracts, investors can create a certain number of DAI. When users are ready to unlock their ETH – which serves as collateral for the DAI loan – they pay back the loan and the fees.

Pancake Swap, based on BNB Chain

PancakeSwap is a decentralized exchange native to Binance Smart Chain or BNB Chain. It is similar to other platforms like UniSwap, in which users can swap their crypto coins for other coins without intermediaries, with the difference that PancakeSwap focuses on the BEP20 token, a specific token developed by the exchange platform Binance.

The BEP20 standard is a checklist of functions new tokens must be able to perform to be compatible with the Binance ecosystem of dApps and other services.

Stargate Finance, a cross-chain bridge for the crypto space

Stargate Finance ($STG) is the largest cross-chain bridge in the crypto space. It allows users to transfer assets between several Layer 1 and Layer 2 networks, such as Ethereum, BNB Chain, Fantom, Arbitrum, and Optimism. The platform is expected to grow in usage as more L1 and L2 chains demand for interoperability increases.

The token itself has a lot of use cases within the protocol, granting voting rights, revenue rights, and more to holders. The token also gives users access to yield farming, staking pools, and liquidity mining opportunities. Overall, STG is a great investment for those looking at long-term value growth on a small market cap DeFi token.

GMX, a multi-chain derivates platform

GMX is a multi-chain derivatives platform on Avalanche, Arbitrum, and BNB Chain that enables users to trade futures, perpetual contracts, and options with up to 25x leverage. The platform has over $400 million in TVL and offers over 20 trading pairs for cryptocurrencies such as Bitcoin, Ethereum, Solana, Cosmos (ATOM), Uniswap, and Chainlink (LINK).

The GMX platform is one of the most popular investments in 2023 because its protocol is the 3rd highest fee-earning cryptocurrency or blockchain available in the space (including Layer 1’s like Bitcoin). The high fees come from the high trading volume on the platform, which results in staking rewards for GMX stakers above 30% APY paid out daily.

Link: https://www.analyticsinsight.net/the-future-of-defi-9-revolutionary-cryptocurrencies-you-dont-want-to-miss/?utm_source=pocket_saves

Source: https://www.analyticsinsight.net

The post The future of DeFi: 9 revolutionary Cryptocurrencies you don’t want to miss! appeared first on Fintech News.

The future of DeFi: Trends to watch

Horacio — Tue, 12 Nov 2024 11:11:04 +0000

Explore the DeFi trends to watch in 2024

By Sumedha Sen

Decentralized Finance (DeFi) has rapidly emerged as one of the most transformative innovations in the financial sector. By eliminating intermediaries and enabling peer-to-peer financial transactions, DeFi offers a more transparent, inclusive, and efficient alternative to traditional finance. As we move into 2024, several key trends are set to shape the future of DeFi, driving its growth and evolution. This article explores these trends and their potential impact on the DeFi landscape.

1. Perpetual Liquidity Pools (PLPs)

Perpetual Liquidity Pools (PLPs) are gaining significant attention in the DeFi space. Unlike traditional liquidity pools, which require periodic rebalancing to maintain liquidity, PLPs offer continuous liquidity provision. This innovation enhances liquidity management and reduces slippage, making decentralized exchanges (DEXs) more efficient.

Why It Matters:

PLPs provide a source of stability and efficiency for DEXs to manage their liquidity. This, in turn, works wonders for minimizing transaction costs and improving user experience. With the increase in DeFi projects applying PLPs, we are sure to see increased liquidity and reduced volatility in DeFi markets.

2. Intents-Based Architecture

Intents-based architecture represents a significant shift in how users interact with DeFi protocols. Instead of specifying every detail of a transaction, users can define their desired outcomes, and the protocol handles the complexities. This approach simplifies the user experience and automates complex processes, making DeFi more accessible to a broader audience.

Why It Matters:

By reducing the complexity of interacting with DeFi protocols, intents-based architecture lowers the barrier to entry for new users. This could lead to broader adoption of DeFi, as more people find it easier to participate in decentralized financial services. Additionally, this architecture enhances the efficiency of DeFi protocols, enabling them to scale more effectively.

3. Points and Airdrop Meta

These mechanisms, points and airdrops, have become popular methods for incentivizing user participation and liquidity within DeFi ecosystems. The more the users are rewarded for their engagement, the more activity and liquidity the project receives.

Why It Matters:

Things like points and airdrops are essential incentives that function as a driver for user growth and engagement in DeFi projects. As these mechanisms become more complex, we’re likely to see continually growing user participation in DeFi, which will raise the overall level of the ecosystem.

4. Liquid Staking Protocols

Liquid staking protocols are, in fact, the innovation that staking needs in DeFi. Traditionally, every time a user stakes their assets, they have to lock them up and can’t use them for other purposes. A liquid staking protocol allows a user to remain liquid while earning the desired staking rewards. In other words, a staker can continue using his assets for other DeFi activities, such as lending or trading.

Why It Matters:

Liquid staking increases the flexibility and usability of staked assets, in turn making staking more users-friendly. As more DeFi projects begin to adopt liquid staking protocols within their products, better participation in staking will be witnessed, which again justifies incentive security and stability for blockchain networks.

5. Cross-Chain Bridging

Bridging across different chains is one of the most promising developments for the future of DeFi. This enables both blockchain chains to communicate and talk to each other in order to support the seamless and convenient flow of assets and data across. This is so important in making DeFi grow, as users can use a much broader range of assets and services under DeFi.

Why It Matters:

Interoperability is essential in DeFi ecosystems to be fully scalable and integrated. Interoperability enables DeFi protocols to complement each other at a high level with complex and diversified financial services for end-users. This not only enhances user experience but also spurs innovation within the DeFi space.

6. Real-World Assets (RWA)

Tokenization of real-world assets is going to be a huge game-changer in DeFi. Through the combination of assets like real estate or commodities into DeFi platforms, users will have stable yields and a much safer haven for their investment.

Why It Matters:

It would enable DeFi to draw more traditional investors considering the safe investment of real-world assets, which, in turn, may also gradually bring about more massive adoption of DeFi by mainstream financial institutions in the long run, further legitimizing the industry and driving its growth.

7. Bitcoin Layer 2 Solutions

The first-ever cryptocurrency, Bitcoin, is becoming more than just a store of value; much new development on the Bitcoin network, especially Layer 2 solutions is enabling dApps on Bitcoin, paving alternative ways for DeFi development.

Why It Matters:

Enhancement of the functionality of Bitcoin through Layer 2 solutions can be an instrument of Bitcoin adoption and integration into the broader DeFi ecosystem. This will not only heighten the utility of Bitcoin but also bring strength and security from the Bitcoin Network into DeFi, thus attracting more users and capital to the space.

8. Prediction Markets

Prediction markets have grown dramatically as one of the most valued feature segments of DeFi. Users can bet on, or otherwise make money from, anything that has an outcome in the future, thereby allowing people to hedge risk via the wisdom of the crowd and even gain unique insight into market sentiment.

Why It Matters:

Prediction markets can deliver critical data and insights about future projects and investment approaches that can eventually help investors and traders make informed decisions. With the ever-growing rise of these markets, they are sure to turn into primary parts of the DeFi ecosystem within the next few days and provide its users with newer means of access to the financial markets.

9. Regulatory Compliance and Transparency

Compliance and transparency are increasingly vital as DeFi continues to grow. That is, projects ready to go through regulatory landscapes and give transparent operations are likely to enjoy more trust and adoption.

Why It Matters:

While regulatory compliance is supposed to ensure long-term sustainability and legitimacy for DeFi projects, closer regulatory scrutiny of DeFi space implies that the projects that can proactively handle compliance issues will be in a better position to thrive. It would also help establish trust among the users, pertinent for further growth of DeFi.

10. Institutional Adoption

Institutional DeFi adoption is already gaining shape, as the traditional financial institutions are also now well on the way to explore the opportunities of DeFi. This has high potential to be a game-changer in terms of pumping more capital and credibility into the DeFi space, thus closing the gap between traditional finance and decentralized finance.

Why It Matters:

It is thus not unlikely that institutional players in DeFi will be the catalysts for the growth of the industry by the infusion of a great volume of capital and expertise. The more institutions turn to DeFi, the more innovation can be expected, and the financial products developed will be only more sophisticated. It will add to the systemic importance of DeFi within the global financial system, integrating into a fundamental financial layout.

Looking ahead, the future prospects of DeFi are bright, accompanied by various developments going to push its growth and transformation in the upcoming year. These may include sustained liquidity pools, intention-driven structures, bridges across different chains, and real-world asset integration. Such trends should eventually raise the usability, accessibility, and attraction of DeFi.

DeFi’s real role in the global financial system will likely be substantial as regulatory standards are developed and greater participation in the institutions comes aboard. Doing so and securing investors’ and developers’ placements in the DeFi movement will very well be accomplished through staying abreast of these changes and adapting.

Link: https://www.analyticsinsight.net/defi/the-future-of-defi-trends-to-watch?utm_source=pocket_saves

Source: https://www.analyticsinsight.net

The post The future of DeFi: Trends to watch appeared first on Fintech News.

DeFi Archives - Fintech News

Escaping the casino: How tokenized assets will save DeFi from itself

Ethereum Co-Founder Vitalik Buterin recently created a ripple on crypto twitter writing that DeFi “feels like an ouroboros [a snake eating its own tail]: the value of crypto tokens is that you can use them to earn yield which is paid for by… people trading crypto tokens.”

So how can DeFi overcome its circular token gambling obsession and play its proper role in scaling crypto adoption?

Tokenized assets

At their most basic level, blockchains are the superior method of issuing, transferring, and tracking assets via the creation of digital tokens. Finance revolves around asset management, making DeFi the most tangible, obvious growth opportunity for crypto.

Why DeFi will benefit from trade wars

In the short-term, the crypto market will be negatively impacted by increased volatility in global trade, says ML Tech’s Leo Mindyuk. But over time, crypto will be less impacted than traditional finance.

Market volatility: a double-edged sword

Mining disruptions

Regulatory uncertainty and compliance hurdles

Shift towards decentralized finance (DeFi)

Conclusion

Three ways DeFi will revolutionize financial services

Here are three emerging ways in which DeFi is poised to create a future where financial services are digital, open, always-on, and borderless.

1. Tokenization of real-world assets

2. Always-on lending marketplaces

In this setup, loans are secured by digital collateral, and if the value of the collateral decreases, the borrower either adds more collateral or risks liquidation — ensuring a healthier lending environment without the opaque risks present in traditional finance.

3. Becoming your own bank

Conclusion: A decentralized future

If we want a future where financial services are transparent, secure, and democratized, we must pay attention to the innovations taking place in DeFi today.

How Ethereum 2.0 can transform DeFi

The SEC’s decision in June to drop charges against Ethereum was a milestone in the platform’s journey toward maturity and greater acceptance in the financial world.

Yes, Ethereum 2.0 holds significant potential for transforming DeFi and the broader ecosystem, but we can’t just have a foot halfway through the door. To reach its full potential, key developments still have to be reached.

Validator centralization

At its core, Ethereum represents a shift in the way financial services are designed, accessed, and utilized. However, relying on a few entities continues to introduce risks and questions about how decentralized Ethereum 2.0 really is.

Shifting gears to DeFi

Getting its affairs in order is just a small part of cementing its legacy.

DeFi champions of 2025: Rollblock, Uniswap, and Solana gear up for dominance

Rollblock: Supercharging decentralized iGaming with GambleFi innovation

The vision to bring about a fairer and more transparent iGaming experience has now become a tangible reality. Players can enjoy a wide array of games with the confidence that the platform’s blockchain-based immutability and distributed ledger technology guarantee integrity and fairness.

Uniswap: V4 launch update set to ignite UNI price supercycle

Solana price soars as Bitcoin dominance wanes. Altcoin season begins?

Conclusion

The DeFi landscape is experiencing transformative innovation and massive opportunities. However, it’s the new Rollblock GambleFi and its paradigm-changing ingenuity for iGaming that’s attracting investors.

The presale is still on, and it’s unbelievably underpriced—just $0.0445. This trio is leading the race for a new DeFi perfectly.

The future of finance? TradFi plus DeFi

Leaders on both sides of the divide will need to develop new skills to fully harness new tech innovations

DeFi vs Crypto: What sets them apart

Decentralized finance and cryptocurrencies are tightly linked, yet they each play distinct roles within the blockchain world. Curious about the difference? Let’s break it down.

What is cryptocurrency? And what is DeFi? Crypto vs DeFi.

Table of Contents

Cryptocurrency explained

Decentralized finance explained

Decentralized finance vs crypto: core differences between DeFi and cryptocurrency

What is the difference between DeFi and crypto?

Purpose and use cases

Ecosystem and components

Crypto

Here are the key components of cryptocurrencies:

Blockchain technology. Think of blockchain as a digital ledger that tracks all cryptocurrency transactions. It’s a secure and open way to see who owns what and ensure everything’s above board.

Cryptographic security. This is the tech that keeps your transactions safe and your data private. It also means you don’t need to rely on a middleman to manage your money.

DeFi

Here’s a simple rundown of the main components of DeFi:

Blockchain. Most DeFi action happens on the Ethereum blockchain, which is where this whole movement started.

Crypto assets and tokens. Think of BTC and ETH as the core players in the DeFi game. They’re essential to how the system operates.

Digital wallets. These are like your online bank accounts for cryptocurrencies. They keep your digital assets safe and secure, typically protected by private keys.

Smart contracts. Imagine these as self-executing agreements that automatically do what they’re programmed to do when certain conditions are met. They’re the backbone of many DeFi services.

Stablecoins. These are digital coins designed to hold steady value, usually pegged to traditional currencies or commodities. They help keep things stable amidst all the crypto volatility.

The Binary Holdings secures $5 Million from ABO Digital to Fuel Expansion of their Decentralized Network Towards One Billion Users by 2025

The future of DeFi: 9 revolutionary Cryptocurrencies you don’t want to miss!

As it couldn’t be any other way, within the cryptocurrency industry there is a growing number of people and community members interested in finances and how to increase their wealth outside the traditional centralized system governed by banks and financial institutions.

In this article, we dive into eight cryptocurrencies that have the potential to disrupt the traditional financial industry and build the DeFi landscape.

Everlodge (ELDG), democratizing vacation rental properties

Lido (DAO), investing without selling your digital assets

Lido is a Decentralized Autonomous Organization (DAO) and Liquid Staking protocol that is used by node operator partners to validate the infrastructure on the Ethereum, Solana, and Polygon blockchain.

Lido is a solution that enables users to earn a yield on staked assets without investing their capital for long periods. Furthermore, Lido is the largest DeFi protocol by total value locked (TVL) with more than $8 billion in assets in the platform.

Essentially, Lido enables users to leverage their staked coins without selling them by wrapping the asset and providing a derivative that is used as collateral by the underlying asset. As a result, investors can access the funds when they need it and earn yield while they wait.

Aave, borrowing with over-collateralized loans

UniSwap, a peer-to-peer cryptocurrency exchange

UniSwap is one of the top decentralized cryptocurrency exchanges in terms of transaction volume and a pioneer in decentralized finance. UniSwap allows peer-to-peer market making, meaning that the platform enables users to trade cryptocurrencies without a third party as an intermediary.

The UniSwap blockchain is hosted on the Ethereum platform and governed by UNI holders. Besides, the Uniswap blockchain uses an open-source protocol, meaning that anyone can view and contribute to the blockchain’s code.

According to the latest data, Uniswap is the fourth-largest DeFi platform and has over $3 billion worth of crypto assets locked away on its protocol.

Avalanche, Ethereum’s main competitor

Launched in 2020, it aims to be fast, versatile, secure, affordable, and accessible. Like UniSwap, Avalanche is an open-source project, so everyone can view and contribute to the platform’s development.

MakerDAO, using its stablecoin to lend money

MakerDao or the Maker Protocol is an open-source, Ethereum-based platform whose crypto coin is the Dai stablecoin, which, aside from ETH, is the most used crypto asset in the DeFi ecosystem. The project offers crypto lending and borrowing by using its collateralized stablecoin, Dai.

MakerDAO is different from the other projects we have seen until now. What MakerDAO has done is adapt the traditional central banking model to the blockchain and open the governance of its blockchain only to a network of token holders.

Pancake Swap, based on BNB Chain

The BEP20 standard is a checklist of functions new tokens must be able to perform to be compatible with the Binance ecosystem of dApps and other services.