TradFi VS DeFi
What you should know about them, and what is #DeFi stablecoins staking🤔
An easy explanation for crypto newbies!
Quick thread👇🧵
What you should know about them, and what is #DeFi stablecoins staking🤔
An easy explanation for crypto newbies!
Quick thread👇🧵
1/ The single most important thing that separate TradFi and DeFi is the word #decentralized
Basically DeFi leverage the technology of blockchains to replace traditional intermediaries & trust mechanisms.
That means there are no involvement of banks!
Basically DeFi leverage the technology of blockchains to replace traditional intermediaries & trust mechanisms.
That means there are no involvement of banks!
2/ One of the most popular feature on #DeFi is the staking feature.
Staking in DeFi gives you a whole different experience due to the high APY.
Even stable coin staking APY can goes as high as 19.5% return on @anchor_protocol !
Can TradFi do that? No👀
Staking in DeFi gives you a whole different experience due to the high APY.
Even stable coin staking APY can goes as high as 19.5% return on @anchor_protocol !
Can TradFi do that? No👀
https://twitter.com/FINXSupport/status/1514050193381298177
3/ But why does #DeFi stable coin staking able to provide such a high yield?
Simply because the demand for stable coins constantly exceeds supply.
A quick search of lending rates on stable coins reveals rates of anything from 9% to 13%, or even more!
coindesk.com/layer2/2022/03…
Simply because the demand for stable coins constantly exceeds supply.
A quick search of lending rates on stable coins reveals rates of anything from 9% to 13%, or even more!
coindesk.com/layer2/2022/03…
4/ So rather than locking their fiat money away in a bank account, people now have the alternative to lock up their crypto assets in smart contract in exchange for a good return
The best part? You can stake with stable coin to avoid any market volatility!
The best part? You can stake with stable coin to avoid any market volatility!
https://twitter.com/Route2FI/status/1504177177339867136
5/ Now your newbie friends will surely have a lot of doubts here, as they might ask you
"what's the catch?"
Well, at least they know every investments come with certain risks!
"what's the catch?"
Well, at least they know every investments come with certain risks!
6/ Lets take a look at #DeFi staking risks:
- Stable coin losing their pegs
- Protocol Rug Pull
- Contract exploitations
- Impermanent loss (if it's not stablecoin)
All these are risks must be taken into calculation before jumping into #DeFi rabbit hole!
- Stable coin losing their pegs
- Protocol Rug Pull
- Contract exploitations
- Impermanent loss (if it's not stablecoin)
All these are risks must be taken into calculation before jumping into #DeFi rabbit hole!
7/ So these are the basic explanations of stablecoin staking in #DeFi
Show this to crypto newbies for easy explanation!
Note: FINX is also coming up with our own DeFi protocol soon, which includes stable coin staking 😉 stay tuned for more info!
Show this to crypto newbies for easy explanation!
Note: FINX is also coming up with our own DeFi protocol soon, which includes stable coin staking 😉 stay tuned for more info!
8/ Do you like this kind of threads? If yes, do retweet this so more people can see!
Thanks alot, degens ♥️
Thanks alot, degens ♥️
https://twitter.com/FINXSupport/status/1519897885353021441
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