Some friends do not understand the recent borrowing and mining, and they are worried that it is the same as the short-lived transaction mining, but it is not.
Loan mining can adjust the mining heat by adjusting the interest rate, term, credit rating, quota and other tools to ensure the stability of the project token. Even if the rewards are reduced, the demand still exists, just like takeaway and taxi. Mining and spreading coins is to educate the market and cultivate user habits. However, the exchange can only rely on real gold and silver repurchase and destruction to support it. This transaction has no wool mining, and users will shift their positions. This is the fundamental difference.
When I stepped into the door of digital currency, I heard a sentence, one day in the currency circle and one year in the world. DeFi has now verified this sentence again.
At that time, the plunge of ETH caused serious congestion in Ethereum, which led to the delay of DEX matching, and the gas fee skyrocketed for a short time. MakerDAO announced that it will start auctioning MKR to repay the bad debts of 4 million U.S. dollars. 50%.
By the end of May, the plot began to reverse.
The disgraced MakerDAO’s governance token MKR skyrocketed by 25%, which opened up the collective rise of DeFi tokens. Afterwards, this seems to indicate that the DeFi project is about to start a wave of currency issuance. In late June, as the decentralized loan agreement Compound launched the token COMP and launched the “borrowing and mining” model, COMP rose from a maximum price of 18.4 US dollars to 326.81 US dollars, a nearly 20-fold increase. Immediately afterwards, the decentralized trading platform Balancer appeared. The price of BAL rose from US$0.6 in the seed round to a maximum of US$22, a nearly 40-fold increase.
DeFi debuted for many years and finally ushered in a high-energy moment! More and more project parties see hope in the bear market, which directly accelerates the DeFi project party’s currency issuance process.
What is DeFi? Some friends may ask, is DeFi more important than WiFi?
DeFi is short for Decentralized Finance, which means decentralized finance. The form of finance is in full bloom, and currently decentralized financial products that really use blockchain technology have to borrow, because borrowing can play a leverage effect, and everyone’s core demand is speculation.
Speaking of decentralized finance, let’s talk about centralized ones. The advantages of centralization at this stage are security with endorsement and liquidity. The most important thing is that it has an unshakable passive trust and a century-old cognitive foundation. Decentralized finance cannot stop this huge inertia for a long time.
DeFi is of great significance to the entire blockchain world, because DeFi has the advantage over traditional financial markets that anyone can directly connect to a global financial market without regional restrictions, without trust costs, there is no island, no There are also lies and fraud, traditional financial issues such as monetary policy, market supply and demand, etc. will be efficient and transparent, and truly realize the dream of Satoshi Nakamoto from multiple dimensions.
Perhaps it is not the well-known public chain in the currency circle that will realize the decentralization of human finance in the future, but the centralized traditional financial institution giants, but we still have to wave our flags to the warriors who are fighting on the DeFi road. Decentralized finance has long roadblocks and fuel.
many investors can’t wait to make DeFi investments in this conscience exchange. Next, we will do our homework and preview what excellent DeFi projects are worth investing in CoinNet.
Also BW will online COMP and other DeFi tokens recently, furthermore, perpetual contract for the DeFi also listed, whoever you are, newbie or cryptocurrency masters, you can also find the best fit for you to make bunus, what’s not to love? and we will introduce some story for the tokens, let’s take a look!
① Compound is also a mortgage loan platform based on Ethereum. Users can lend another token by collateralizing one token, such as mortgage ETH, and lending USDT. At present, with a wave of lending and mining, Compound’s market value is comparable to MakerDAO, ranking the top two in the list.
② MakerDAO is the oldest eldest brother in the DeFi world. Founded in 2014, it is a decentralized autonomous organization and automated mortgage platform. The project has a stable currency Dai (1:1 anchored US dollar), and there is also an interest. Token and community governance token MKR.
③ Balancer’s index fund can also be used as a liquid asset pool for users, suppliers, traders and other market participants. The user stable currency is put into the agreement pool, which can not only obtain income from loan interest, but also obtain transaction fee income because of providing liquidity. Its token BAL is the most beautiful in the DeFi circle except COMP recently.
There are also interesting projects such as SNX, BNT, LEND, etc. in DeFi rivers and lakes. In this period of lack of heat, DeFi has a good arbitrage opportunity or investment value. We still pay more attention to BW (currency network) to see what High-power DeFi coins will be launched.