A real shift in the market towards De-fi is underway (August 2020). Mainstream media has only a vague idea. Decentralised Finance projects and tokens are booming, or attracting keen interest. What does this mean? It might mean no Coinbase or Binance trading or staking. Instead, keep control of your crypto via non-custodial apps without any intermediary. This revolution is perhaps pushed by insecurities with traditional finance at this time, but is also just because De-fi protocols are being unleashed and opportunities are emerging…

People always need loans, and people want returns. The latter don’t want to sell their crypto anymore: it’s more valuable. They can provide liquidity. They can now get those returns and earn real interest yields from various dapps. ‘Yield Farmers’ go from one dashboard to another redeeming interest, converting into other opportunities. Automated protocols do this too, just as smart contracts allow the actual borrowing and lending to occur for anybody, without an intermediary or bank approval. This is now possible through decentralised open finance. And it’s booming.

But… if Ethereum doesn’t get ruined by such supply and demand in the process. It really needs its upgrade to kick in, for smaller investors to participate. Fees are just too high now. With a faster Ethereum and more interoperability and faster blockchains proving themselves… the brave new technological trust layers can prove themselves. It will trigger a bull run, if not before.

At this stage it could be wise to invest in some of the major tokens achieving deserved growth: LINK, LEND/AAVE, COMP, KNC, BZRX etc…

Will you trust a protocol governed by a (properly) decentralised community instead of a centralised entity? The answer is like driverless cars. We will all trust technology in the end.

Let’s just hope there won’t be security breaches that will knock down the excitement at this still early stage. It’s wise to invest cautiously, but fine to experiment with dapps which plug straight into your wallet and empower you with interest or information about your (own) MetaMask, Trust wallet etc…

Coinbase, Binance, Nexo etc…

De-fi exists beyond these players, although it may not have existed without them. They’ve had to disrupt themselves a little, releasing their own de-fi wallets and blockchains. Or diversify into lending, payment cards etc.

Everyone in crypto dislikes monopolies, custodians or using Coinbase for withdrawals, fees etc. The future means wallets like MetaMask, and decentralised dapps with governance tokens where staking or voting can earn you rewards. Truly open finance.

Payment cards will be a main reason to still use Coinbase, Binance, Crypto.com etc, until… the next catalyst or some ‘de-fi payment card’ can emerge.

Meantime, the spotlight is back on Ethereum and its tokens.

For a glimpse into this powerful future, take a look at BzX.network and experiment with some of its dapps (on homepage). Get your browser wallet ready…

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Chainlink
New resource on De-Fi

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