Is DeFi The Future of Crypto Finance? Some Big Industry Names Think So

The hot potato in the world of crypto at the moment is decentralized finance. Satoshi’s original notion of cutting out the bankers is now possible in this new world of digital assets and DeFi protocols. The industry is still embryonic but some of the bigger names in the world of crypto and finance are finally paying attention.
Crypto Wealth Management Built on ETH
By definition decentralized finance is a movement that leverages decentralized networks to transform old financial products into trustless and transparent protocols that run without intermediaries. In essence it is doing away with the banks and middlemen to allow people to manage their own wealth on autonomous networks governed by smart contracts.
DeFi is currently dominated by DAI which is a decentralized hard asset backed, dollar pegged stable coin.  DAI, and the MakerDAO platform uses margin trading to respond to changing market conditions while preserving its value against the major world currencies. Maker is a smart contract platform on the Ethereum blockchain that backs and stabilizes DAI through a series of dynamic feedback systems called Collateralized Debt Positions (CDPs).
By depositing ETH, people can borrow stable DAI to make other investments without risking the loss of ETH, which is what happened to most during the ICO boom. Essentially it is a crypto credit facility that can issue loans at certain interest rates. Stakers are also able to use it to generate interest while protecting their stake. Industry observer Alex Saunders noted that in a world of negative interest rates DeFi could be the answer …

Bitcoin Price Won’t Go Down Quietly: Risk of Bounce Grows
Tuesday January 21, 2020

Bitcoin is currently consolidating above the key $8,500 support area against the US Dollar. BTC price could start a fresh rally if it clears the $8,800 resistance area. Bitcoin price is confined in a...

The post Bitcoin Price Won’t Go Down Quietly: Risk of Bounce Grows appeared first on 12bitplay - Bitcoin Play.

Imagine #Defi Apps offering 10%pa in a world of negative interest rates. Accessing stocks, commodities & tokenised assets. Portfolios auto rebalance. Smart contracts allow custody & insurance. No middlemen taking fees. The future of wealth management is being built on #Ethereum. pic.twitter.com/Crcfm3OjhO
— Alex Saunders (@AlexSaundersAU) September 10, 2019

The Same Indicator That Flashed Before Bitcoin’s 30% Drop in Nov 2019 Just Hit Again
Monday January 20, 2020

The Fear and Greed Index (FGI) for crypto is currently neutral at 53. The last time it was at this level, a 30 percent drop occurred for bitcoin in November 2019 from $9,400 to...

The post The Same Indicator That Flashed Before Bitcoin’s 30% Drop in Nov 2019 Just Hit Again appeared first on 12bitplay - Bitcoin Play.

Maker is not the only DeFi platform out there but it is the most popular at the moment. Two others have recently be noticed by crypto exchange giant Coinbase which announced a new fund to invest in the fledgling industry.
Coinbase Invests in DeFi
In a company blog post yesterday, Coinbase stated that it aims to encourage growth in DeFi by channeling funds into the development of two protocols. To begin it will contribute 1 million of its own stablecoin, USDC, each to the development of the Compound and dYdX platforms.
Coinbase USDC Bootstrap Fund lead Nemil Dalal said that DeFi is a tiny portion of the world of banking and financial transactions, adding that the company is tracking growth in an effort to further fund its expansion.
Just last month Nasdaq announced that it was adding a decentralized finance index (DeFiX) to track the projects working in the field. It initially included Maker, Augur, Gnosis, 0x and two other obscure tokens but failed to include Ether which currently powers most of the industry.
Image from Shutterstock
The post Is DeFi The Future of Crypto Finance? Some Big Industry Names Think So appeared first on NewsBTC.

Bitcoin Highly Bullish Despite Selloff; Here’s What Could Propel it to $10,000
Sunday January 19, 2020

Bitcoin and the aggregated crypto markets have incurred immense volatility over the past several days and weeks, which has come about as Bitcoin’s bulls and bears have engaged in an intense battle that has,...

The post Bitcoin Highly Bullish Despite Selloff; Here’s What Could Propel it to $10,000 appeared first on 12bitplay - Bitcoin Play.

You may also like...