Decentralized finance or DeFi is not a new term to the crypto community. It represents a wide range of lending, trading, and staking activities that are carried out entirely on blockchain networks using tokens as ‘proceeds’ and ‘collateral’.
DeFi became more popular last year when the value of coins spiked. DeFi is forecasted to be the next big trend in the crypto space! Thanks to its permissionless nature that enables global users with anonymity, transparency of transactions, and significantly lower costs than traditional finance.
New generation DeFi platforms like NewB Farm can overcome the shortcomings of traditional finance and become popular globally.
DeFi Market is Getting More & More Excited!
Decentralized finance (DeFi) is one of the biggest blockchain success stories referring to a category of blockchain-based protocols that enable open access to the services offered in the TradFi industry. The DeFi industry does not rely on central financial intermediaries such as brokerages, exchanges, or banks to offer financial services, instead, it leverages smart contracts on blockchains.
The growth of this sector is increasing exponentially and is typically measured by the amount of capital associated with the smart contract comprising its various protocols. With total value locked within DeFi surpassing $239 billion so far in 2022 which is 40,000% more than in 2020, which was only $601 million, it is clear that many are in favor of this more democratic, decentralized approach to finance.
Built on permissionless networks like Ethereum, the applications that comprise the rapidly expanding DeFi sector enable their users to engage in a host of familiar financial activities that include -
- Lending and borrowing
- Saving
- Spot trading
- Margin trading
- Derivatives trading
- Insurance etc.
In traditional finance, intermediaries serve an important role whereas, in decentralized finance, smart contracts replace them. Smart Contracts are the digital agreements written in the code that are permanently recorded to the public blockchain on which they’re deployed. When their predefined conditions are met, the code executes automatically and settles the contract without human intervention.
This enables some of DeFi’s more revolutionary qualities like -
- Permissionless
- Composable
- Immutable
- Low Cost
- Transparent
DeFi is definitely the new modern finance that has subverted the entire traditional finance. It is good but at the same time, it’s complicated too. Its level of sophistication has stopped many new users to use the true of DeFi, so NewB.Farm was born for this!
With new financial DeFi by NewB Farm, more stable passive income can be generated.
NewB Farm: DeFi Solution Combined with Yield Farming
NewB.Farm is a global community-driven Yield Farming aggregator launched on BSC (Binance Smart Chain). The key purpose of this platform is not to challenge the existing DeFi projects but to allow more global audiences to understand what DeFi is and unlock its true potential through the NewB.Farm’s income farm.
With our new approach, we are absolutely confident that more people will be exposed to DeFi because our advantage is simple enough.
To learn more about NewB.Farm and stay tuned with all the latest updates and releases, join us here –
