Decentralized Finance, or DeFi for short is what is mentioned when trying to refer to a financial smart contract. This as been long expected on the Bitcoin Cash Ecosystem following the announcement of Anyhedge by the Developers of the organization, General Protocols .
On the 30th of December, The wait was over. DeToken was announced, a non-custodial exchange platform built by the Developers of Cryptophyl, implementing Anyhedge's protocols. For one to really understand how DeToken works, understanding Anyhedge's protocol is necessary.
The Anyhedge Protocol
Built to be an open-source protocol, Anyhedge makes it easier to use the Bitcoin Cash BlockChain to run a specific type of smart contract, 'hedge'. The contract has a role in Hedging an asset over high volatility. Taking a look at Anyhedge's White paper, we discovered that the protocol depends on an oracle (a blind oracle) to execute a contract.
Understanding The Oracle
You can read from a detailed explanation of how the Oracle works on the Anyhedge Protocol.
Important Aspects of a DeFi
Lending:-
Decentralized Finance have been more popular for its use case of borrowing and lending tokens. Lending has been a passive way of earning income on DeFi.
Hedging: -
Scared of High volatility? Protocols on a DeFi system can help hedge the value of your assets from depreciation during occurrences of volatility.
Longing: -
Based on speculations, You can Long an asset to earn if the price goes up using a leverage.
DeToken - DeFi on Bitcoin Cash
Using the Anyhedge Protocols, DeToken is a Decentralized platform that offers a trustless (blind oracle), limitless and secured access to peer to peer financial products across the world. It uses a non-custodial web wallet and a smart contract to hedge your assets from high volatility, long your asset with leverage while earning funding rates.
How DeToken Works
Hedge and long positions are made possible by a smart contract on the BCH blockchain, where both parties pay into a Pay-to-Script-Hash (P2SH) address using a custom funding transaction.
Advantages of DeToken
Non-custodial: DeToken features a non-custodial web wallet which gives you control over your private keys.
Trustless: Implementing a blind oracle, you do not need to trust DeToken. You can get record of all your Transactions on the BCH BlockChain.
Open Sourced: As a Developer, you can get to build a contract like DeToken.
Charge Less: DeToken doesn't charge for withdrawals, Deposits or for maintenance. Never!
Easy Withdrawal: At any convenient time, you can withdraw your funds.
Getting Started With DeToken
Having understood how DeToken works, one would want to dive into this wonderful opportunity created on the Bitcoin Cash BlockChain, to hedge and to long assets on futures. The steps below will show in details on how to get started on DeToken
Step 1: Using your web or mobile browser, visit https://detoken.net then tap/click on get started.
Step 2: Create A Wallet, here you can create or import an existing wallet using your seed phrases.
Step 3: Read and agree the terms of DeToken before you continue.
Step 4: Fill in some personal details, these include your name, email address and password. Note: These details will grant you access to your DeToken wallet and must be kept private.
Step 5: Write down your Seed Word. The seed word is like a private key which gives access to reset your password, import your wallet anywhere and to your funds. This too must be kept private.
Step 6: For extra Security, You can choose to authenticate your DeToken wallet. Whenever you sign in to Detoken you will need to enter your 2FA code generated using a 2FA application.
Step 7: Confirm Your Email. A confirmation link will be sent to your email address, click on the link to complete your registration process.
Step 8: This is the final step. After email confirmation, you'll be taken back to a login page. Fill in your details and log in.
Conclusion
In Conclusion, The Project Anyhedge is bringing a revolution to Bitcoin Cash when it comes to DeFi and smart contracts, DeToken is the first to implement its protocols. More of the DeFi based tools will be built which will boost Transactions within the Bitcoin Cash BlockChain.
You forgot an important point in the advantages list: way cheaper than the main competitor, Ethereum.