DeFiAi

DeFi

defiai

DeFi: How to choose the right Defi Platform ?

Take it From the Top: What Is DeFi?

DeFi is short for “decentralized finance,” an umbrella term for Ethereum and blockchain applications geared toward disrupting financial intermediaries.

DeFi draws inspiration from blockchain, the technology behind the digital currency bitcoin, which allows several entities to hold a copy of a history of transactions, meaning it isn’t controlled by a single, central source. That’s important because centralized systems and human gatekeepers can limit the speed and sophistication of transactions while offering users less direct control over their money. DeFi is distinct because it expands the use of blockchain from simple value transfer to more complex financial use cases.

How will Ethereum 2.0 impact DeFi?

Most decentralized finance applications are built on top of Ethereum, the world’s second-largest cryptocurrency platform, which sets itself apart from the Bitcoin platform in that it’s easier to use to build other types of decentralized applications beyond simple transactions. These more complex financial use cases were even highlighted by Ethereum creator Vitalik Buterin back in 2013 in the original Ethereum white paper.

That’s because Ethereum's platform for smart contracts – which automatically execute transactions if certain conditions are met – offers much more flexibility. Ethereum programming languages, such as Solidity, are specifically designed for creating and deploying such smart contracts.

The most popular types of DeFi applications include:

  • Decentralized exchanges (DEXs): Online exchanges help users exchange currencies for other currencies, whether U.S. dollars for bitcoin or ether for DAI. DEXs are a hot type of exchange, which connects users directly so they can trade cryptocurrencies with one another without trusting an intermediary with their money.
  • Stablecoins: A cryptocurrency that's tied to an asset outside of cryptocurrency (the dollar or euro, for example) to stabilize the price.
  • Lending platforms: These platforms use smart contracts to replace intermediaries such as banks that manage lending in the middle.
  • "Wrapped" bitcoins (WBTC) :A way of sending bitcoin to the Ethereum network so the bitcoin can be used directly in Ethereum's DeFi system. WBTCs allow users to earn interest on the bitcoin they lend out via the decentralized lending platforms described above.
  • Prediction markets: Markets for betting on the outcome of future events, such as elections. The goal of DeFi versions of prediction markets is to offer the same functionality but without intermediaries.

There are 5 key tips on choosing the right Defi as a platform:

  • Find out whether all of the features you need are already included in the platform.
  • Find out whether their native token (Ether, ERC20, etc.) has been updated to include all of your desired features.
  • Make sure that if you have the main change in mind or a significant twist to the standard token functionality, then it will not be incompatible with any other platforms that support this standard.
  • Exchangeable tokens can be traded on other platforms.

Each project has its own disadvantages and advantages. But let’s not look at the negative things that are destroying our advocacy so that we can improve whatever project we are embarking on and this is what we will look at on the DEFIAI PLATFORM.

DEFIAI PLATFORM uses the AI intelligent system to screen safe and stable DeFi pools that have been audited by security audit institutions. In addition to ultra-high compound interest income, it also has the following advantages:

  • 1.

    Control — DEFIAI transfers asset control authority to users, staking is non-custodial. You are always in complete control of your private keys and funds throughout the staking and lending processes. You are free to un-delegate or withdraw your funds at any time, subject to the lock-up requirements for each protocol.
  • 2.

    Cooperation Matrix — It has reached strategic cooperation with PancakeSwap, MDEX and other leading DEXs. Due to its unique business model, the DEFIAI project has developed rapidly in a short period of time.
  • 3.

    DeFi Pool — DEFIAI will set up a DeFi pool in the top lending project of the public chain to provide financing for leveraged mining users. Deposit users only need to deposit their assets in the DeFi pool to receive rewards. In the future, DEFIAI will share depth with multiple top lenders to maximize user deposit and borrowing needs.
  • 4.

    AI — AI refers to systems and machines that can imitate human intelligence to perform tasks and iteratively improve themselves based on the collected information. AI has many forms, DEFIAI artificial intelligence automatic intelligent investment, collective trading, automatic compound interest, risk management and other applications.
  • 5.

    Stable Strategy Pool — DEFIAI will screen stable and secure fund pools to help users earn profits. DEFIAI will also screen more types of fund pools and platforms, such as Three-party valut aggregate asset platform, etc.
  • 6.

    Compound interest strategy pool — DEFIAI has its own independent data engine, public opinion analysis, and intelligent monitoring to prevent users from missing high-yield information, and obtain real-time access to the latest online top mines in the market, pledge lending, pledge mining, leverage mining and other ultra-high-yield pools, which will earn money from the stable pool.

Related News