Decentralised finance is free from the clutches of intermediaries. These intermediaries could be banks, credit card companies, non-banking financial corporations, brokerage firms, lending platforms and more. Decentralised finance has removed these third parties by reducing barriers that entry typically has to those who want to invest or save money through financial intermediaries.
The question of regulation
Now, the question is, if the lack of regulations is a good thing? Of course not, as it hinders the growth of the crypto industry, which by extension also impacts the DeFi space. You don’t have to worry about the lack of regulations with CryptoSimple, as we are a regulated entity. Being a regulated company↗ , we have to follow the rules and regulations, and therefore, we ask for a KYC and proof of nationality. It enables us to keep our users away from money laundering efforts while offering benefits like higher interest rates and 24/7 service.
What DeFi brings
DeFi makes the financial economy more inclusive, equitable, and democratic. It aims to help people without bank accounts or access to traditional finance with resources in terms of investment and funds. The DeFi paradigm is more conducive to developing unique product lines that predominantly come as dApps or decentralised applications. Being technology-rich makes it fit to innovate with high levels of transparency and more efficiency.
The Uses of DeFi
The things you can do with applications developed on the DeFi paradigm are potentially limitless. For instance, you can access applications where it is possible to lend out your idle crypto holdings and earn interest and rewards from well-known DeFi protocols.
While asset holders benefit from such lending-borrowing protocols, people who require funds can easily access loans. As cited earlier, such crypto borrowing mechanisms are free from the traditional finance lending drawbacks, such as filling up lengthy paperwork, waiting for long periods to get approval from different authorities, etc. At CryptoSimple, we have made sure that the entire onboarding process↗ takes only 10 minutes or less.
DeFi and trades
Trading is also a tested avenue to keep earning from DeFi protocols. These trades are similar to what you do in stock exchanges, buying and selling equities. But the advantage is that these trades happen through smart contracts and are free from brokerages. DeFi protocols, giving you earning opportunities through your crypto holdings, help diversify your portfolio. When it comes to diversification of portfolios, it can take some effort, and therefore, we at CryptoSimple have taken it upon ourselves to help our users diversify their portfolios↗ . It means that we do all the heavy lifting stuff, so you don’t have to.
DeFi has grown into a self-sufficient alternative digital economy. From earning to trading, buying insurance to derivatives, it helps perform a host of functions without requiring additional expenses for running an infrastructure laden with intermediaries, expensive facilities, systems, and machines.
A crypto wallet is all you need to access a DeFi protocol. But creating a crypto wallet and using it to connect with DeFi protocols is easier said than done. Anyone taking baby steps in the crypto space will find it difficult to create and use a crypto wallet. That’s why at CryptoSimple, you do not even need to create one.
To recap, DeFi is a modernised version of the banking and financial system as we know it today. This ecosystem is still young and it will evolve to improve over time. Within a few years, decentralised finance is likely to become more mainstream.
Imagine a global, open alternative to all the financial services you use today - savings, loans, and more - accessible to everyone. This is what decentralised finance (DeFi) offers.