What The Bl*ck Is DeFi?
The “What the block…” article series will cover a variety of common topics associated with crypto and web3. This article will help you understand what DeFi is and its purpose within the crypto world.
The Backbone Of Crypto
Movies like Wall Street and The Wolf of Wall Street have created a false fantasy centered around financial institutions. Yes, they may wear some nice suits and drive fast cars, but that’s a thing of the past. Okay, maybe not all of it — after all: “When lambo?” is still arguably the most pivotal crypto-related question out there to date. Still, when all is said and done: DeFi is the future of finance, for everyone not only a select few.
So, what does it even mean? DeFi stands for “Decentralized Finance” and is used as a general term to describe the financial services on blockchains. Imagine a bank that is faster, “paperwork-less,” and enables you to lend, borrow, trade assets, earn interest, and more — all without a bank or third party. DeFi removes the centralized system that traditional banks require, and enables secure, international, peer-to-peer transactions.
Importance and Benefits of DeFi
DeFi takes the concepts of digital currency and greatly expands upon it. The costs associated with trading traditional assets and currencies on the stock market are alleviated via this avant-garde digital service, thus promoting a more accessible financial market open to all.
Investors are able to access the benefits of DeFi simply by having a digital wallet. There is also no need to share all your personal information, investors can use pseudonyms if they prefer. Moreover, DeFi eliminates many expensive fees that stem from banks and provides investors with greater flexibility when moving assets. In the past year, the DeFi market has increased by 550%.
Building Blocks For A Brighter Future
At Decubate, we strive to provide our community with the same accessibility that DeFi affords. Most recently, we partnered with AlgoBlocks, a user-friendly DeFi aggregation and automation platform that simplifies the crypto onboarding experience, making it easy to interact with leading DeFi protocols, all in one place. Their mission, as well as part of our own, is to enable everyday crypto users to use DeFi products seamlessly. Algoblocks has also opted into our Assured Token Vesting and Staking services, making an already strong partnership even more fruitful.
The LUNA Sphere of Influence
For the avid crypto enthusiasts out there, we are sure you have heard about the LUNA token debacle this past month. LUNA is a part of Terra, a pioneer in the DeFi space, and has seen great success this past year. The LUNA token works in conjunction and backs its stable token, UST. LUNA was climbing and climbing, with no sign of slowing down; however, that all changed when an anonymous person shorted UST. This caused LUNA to tumble down by 99%, from its highest price of $119. Even though the LUNA crash greatly impacted the crypto market, there are some important takeaways to learn from it. According to Bianace CEO, Changpeng Zhao, crypto projects must be receptive and communicate to their community during crises.
The crash has definitely been a topic of discussion at Decubate, and it reaffirmed that we should continue to make efforts to actively communicate with our community, projects, and investors to ensure our operations are as transparent as possible. We love to hear from you and value your feedback; connect with us to learn more about the future of Decubate.