The Rise of DeFi Market and the Next Big Thing in Finance
Decentralized Finance Is One of the Sectors That Has Been Trying to Shake the Traditional Financial Ecosystem
DeFi, or Decentralized finance, is a relatively new construct but if you’ve had even half an eye on the cryptocurrency space in 2020, then you can’t have missed the surge of news stories and emerging projects around DeFi.
DeFi offers smart contracts that use the blockchain technology commonly used with cryptocurrency in order to establish smart contracts without the use of traditional banking establishments. While this technology is already on offer, there’s still a great deal to be figured out before it can be put into normal circulation. At this point, however, it’s continuing to increase in popularity, with somewhere around $6.9 billion invested in DeFi contracts. This is up more than triple what it was in 2017, when the system was first initiated.
It currently allows for borrowing and lending cryptocurrencies that allow for earned interest, betting on events, creating and exchanging real-world assets including currency and precious metals, investing in no-loss lotteries and even buying stablecoins, a particular type of cryptocurrency.
All of these things will allow DeFi to change not only the traditional finance market of banking but finance in general because it’s allow you to use digital currency in nearly all of the ways that traditional currency can currently be used. The decentralized process makes it more attractive to a variety of players in the industry, increasing benefits offered and minimizing a great deal of risk involved in traditional finance.
The Future of DeFi
What does the future look like for DeFi? Well, if things continue moving forward the way that they are it’s entirely possible that DeFi could disrupt the current situation of finance entirely. As more and more things move online already, including shopping digital currencies and more, it’s likely that finance will continue to explore the online market.
While we already have online banking in a number of ways, DeFi will revolutionize this process and create an entirely new system that works entirely online and does not require traditional banks at all. After all, blockchain technology as a whole is all about interrupting the status quo and creating an entirely new system.
Understanding OKEx
Before we dive into just what OKEx and DeFi have to do with each other, let’s take a closer look at OKEx on its own. This platform is one of the top cryptocurrency platforms available in the world. It’s a one-stop exchange that allows you to not only buy and sell but manage your existing cryptocurrencies all in one place. It works with all of the most popular forms of currency and some of the more obscure options s well. Not only that but it has secure wallet technology and offers options such as spot and derivatives trading, mining pools and onchain wallets.
Buying, selling, trading and learning about cryptocurrency is easy with this platform. In fact, they offer a range of different trading and learning tools as well as an academy process to assist those who are new to cryptocurrencies or those who wish to enhance their current understanding. These processes and methods help anyone to get better at buying and selling and making the appropriate decisions for their investment strategy. Whether you’re looking for a little assistance or a lot when you’re getting started with OKEx, you can find the tools you’ll need.
OKEx and DeFi
OKEx is starting to get even more into DeFi and ways that it can continue to utilize the system and allow its investors to participate in this new technology. One way that it’s working on this is through a special promotion going on for a limited time only. With this promotion, OKEx users can engage in DeFi farming and earn their own OKB. Even more, they can earn a portion of the rewards pool that is currently set at 50,000 OKB. While this is only going on for another week, there is the potential for a great reward from participating.
Just last month, OKEx has listed a total of 21 DeFi tokens, which shows that they are definitely more than willing to get started investing with this new system. It also puts OKEx at the forefront of some of the top exchanges around the world and shows that they are most definitely capable of not only identifying what their users are interested in but also choosing the best possible products for those within their customer base. Since their people are located all around the world, it’s definitely an important stance for the platform to make, branching in new directions.
The DeFi market has most definitely been making headlines and people have a growing curiosity about just what it’s going to mean for them. It’s also showing a large amount of gains for many of the investors who have gotten involved. The market cap hit approximately $17.74 billion at the beginning of September, which was a record and meant a 250% increase over a period of one month, since the beginning of August. This is most definitely a sign that OKEx and other platforms should be looking even closer at DeFi and everything it could mean for their platforms and more.
Overall, OKEx supports a number of DeFi coins, though not all of them have been listed. Still, there is plenty to consider when it comes to buying into this system. Even though OKEx is showing the benefits and options, there are plenty of things that they are warning about as well. After all, DeFi has seen dramatic increases over a very short amount of time and OKEx warns their investors about what it could mean to get involved n any platform or currency with the hopes of making fast gains. There are plenty of reasons to invest with DeFi, but it shouldn’t be about trying to dramatically win the market.
Projects Currently on Offer
With DeFi, it’s not just about cryptocurrency, however. What you’re actually investing in are specific projects with a large potential for the future. There are 21 of these currently available with OKEx, though others are coming soon from the additional 14 tokens that OKEx has on offer. The ones that are currently available, however, offer a range of different options and services and give investors the opportunity to get in early and start making some big investments that could change the face of the market as well as providing returns.
PowerPool
This system is actually referred to as CVP and it provides a method of pooling together governance tokens with others to create more say or more control. So, in this process minority holders of tokens from different DeFi processes would be able to accumulate their governance together and could then achieve even more utility, which would help resolve some of the problems associated with the apathy of voters. It also allows users to lend their incentives, pool them or even earn more of them. The average daily transactions from this protocol have already reached approximately 5,000 transactions.
UniTrade
This protocol is actually a decentralized trading platform. It uses UniSwap liquidity pools but what’s unique about this system is that there are no KYC, accounts or trading limits. There are also plenty of different functions available that you won’t get in other areas. These include real-time order books, transaction history, limit order and real-time depth data. All of this makes the trading experience even better for those who are investing. In fact, they’re the first exchange to offer all trading products for this system.
UMA
The last of the major protocols and platforms available, UMA is a synthetic asset issuing platform. It has a number of technological innovations that make it more unique and powerful than similar systems as well. It’s built on Ethereum and offers data verification mechanisms as well as decentralized oracle service and priceless financial contract design. All of this can be used to create synthetic tokens. As a result, the system has a huge market cap within the DeFi projects listing. It’s currently at approximately $1.24 billion, which makes it another excellent project to get in with as early as possible.
Other
Other tokens that are currently available on OKEx exchange are SushiSwap, YFII.finance, Aave, Decentralized information Asset, Yearn.finance, Xensor, Proton, Curve, Serum, Kieros, Mantra DAO, Band Protocol, Just, REN, Reserve Rights, Nexus Mutual, Tellor and YFValue. Each of these platforms add additional benefits and features for the system.
OKEx Oracle
So, if OKEx is getting involved in DeFi then just what is Oracle? Well, Oracle is the method that they’re using to work within DeFi. It’s a secure and signed price feed that can actually work with decentralized finance projects. It does this in order to get access to the on-chain pricing structure. This exchange is highly liquid and completely global, which provides even more options and makes for a more trustworthy source for pricing data.
Without authentic and accurate pricing data decentralized finance is subject to malicious users and those who would attempt to defraud others or the system entirely. If it doesn’t have access to the proper pricing data then anything could be posted and the system could be exploited by those who are looking to defraud it. Through Oracle, OKEx is working to make the entire system as safe as possible and to make sure that everyone who does participate in DeFi is going to get what they expect, a safe and efficient platform for finance.
This system is highly protected and provides not only a pricing feed for OKEx customers but for anyone who wants it. This makes it even more effective for those getting involved with DeFi but not necessarily with OKEx. However, it also makes people more likely to at least check out the platform that’s providing this service. Not only that but Oracle is signed by the OKEx exchange, which means it’s backed by the platform. It also has a secure private key and provides a public key that anyone can use to verify the data source on-chain. This helps ensure accuracy and holds the platform accountable at the same time.
What You Need to Know
Overall, there are a number of different things to know about DeFi and about OKEx as well. This platform seems to provide a range of different services and offerings that are available to those who want to get involved in the cryptocurrency marketplace. It offers buying, selling, trading, training and a whole lot more that you can use whether you’re new to crypto and the digital market or you’ve been engaged for a long time. And with the addition of their support for DeFi, it seems to only be growing.
For DeFi, the opportunity to get in on the ground floor of a unique and truly remarkable service is definitely something to look at closer. This system offers something truly remarkable and as decentralized finance continues to grow it could eventually become something even more unique. There’s really no telling all of the things that could eventually happen with DeFi, but at this point, we know that it’s moving into a realm where it could eventually take over the traditional finance world. As more and more people become interested in decentralized protocols, it’s only a matter of time before this one really takes off.
By working with OKEx and DeFi together you can create a completely diversified investment portfolio that will allow you to get involved with some of the biggest technology of our time. And definitely with some of the most unique and advanced opportunities around. There is plenty out there to work with and you could be investing in something that changes the face of our financial and digital future.
Happy trading!
Images credit: Shutterstock
