What are some DeFi platforms?
We cannot deny that Cryptocurrency has grown exponentially, now into a trillion-dollar industry. Because of this, there is a financial disruption around the world. Cryptocurrency first started with Bitcoin which is called the OG of Cryptocurrency. It has become a payment system allowing everyone to enjoy the uninterrupted money remittance to everyone.
Decentralised Finance or for short called DeFi is an extension of Crypto seeking to take Crypto’s accessibility further. DeFi is more than just currency but it also builds a sophisticated system and application with uses like addressing borrowing and lending as well as trading and more. So Why is the world talking about DeFi? We will talk about what DeFi is and also how it works to benefit us through 5 of the most active DeFi Platforms.
What is DeFi and how does it work?
Decentralised Finance or for short DeFi is an Umbrella term for all financial services on public blockchains and as of right now, Ethereum is the primary. With DeFi, you can easily do things that banks support like earning interest, borrow, lending, buying insurance, trade derivatives, trade assets, and so much more but it is just much faster and efficient and also doesn’t require paperwork to be done or any interference from third parties.
DeFi is open to global connections, Peer to Peer, open to all. DeFi typically uses smart contracts which are automatically enforced agreements and does not need intermediaries to complete it and also are accessible by anyone with an internet connection.
Top 5 DeFi Platforms
MakerDAO is one of the oldest DeFi projects and also carries the most weight with $19.3 billion total. They have around 18% of the dollars invested into DeFi’s at present.
Aave is a DeFi platform that you are able to lend and borrow cryptocurrencies. People will seek to lend Crypto to earn interest or borrow in exchange for paying interest.
Fantom is an open source smart contracts platform for digital assets. Fantom simplifies the borrowing process and lending as well and also trading of synthetic assets. All that you need to do is simple, access your digital wallet, deposit tokens and start earning
PancakeSwap is a unique one and what it does is it runs on Binance Smart Chain rather than Ethereum. This means that trades are going to be cheaper and faster. PancakeSwap is growing very quickly as the use of BSC has soared as well.
Compound is a liquidity source on borrowing and lending assets. When you make a deposit, you will receive CTokens in return which you can then use to purchase other currencies in Crypto on the platform.
With all this being said, DeFi platforms Malaysia will come in the form of banks. The banks are trying to use DeFi to benefit Malaysians and it will soon that they will enter Malaysia as well. Similarly with all that being said if you yourself want to use DeFi platforms, you can always give them a try and see what you can get from it and know even more about it.