Decentralized Finance and Non-Fungible Tokens... These two fashionable concepts are leading the way of the bull run that we are in. When the flow of the money is considered, people choose to invest in cryptocurrencies that have Liquidity pools or De-Fi products.
It's not surprising to see that the majority of the money is flowing to that area. Non Fungible Tokens, on the other hand, are viewed as a way to make some bucks through NFTs. Although the mindset behind NFTs is mostly based on digitizing pieces of art; the majority of the NFTs are not created by artists but by graphic designers, coders, or some other parties.
There are some major differences between NFTs and De-Fi in terms of profitability for the enthusiasts. For example, while De-Fi is based on a long-term income model, NFTs are focused on instant buy-sell mechanisms. Additionally, while De-Fi projects are acting like banks for financial-freedom from the existing system, NFTs are moving in the grey zone where people have difficulty in attributing value, and in the end, everything is taking place with regard to pure speculation.
Going De-Fi Friendly
As I mentioned earlier, projects need to have connections with De-Fi products if the project is seen as undervalued. While the majority of money is circulating in the Decentralized Finance ecosystem, it's necessary to build similar mechanisms or adapt the existing ones with the operating counterparts.
Believe me or not, I think it's better to be adapted for other operating ones in this era. Here we have Ethereum De-Fi (the pioneer) and Binance Smart Chain (the growing twin utilizing the tx problems of Ethereum blockchain)
Let me show you some solid examples:
ALICE with %30,000 increase
Please look at the hourly actions in the price. Unbelievable, isn't it?
The hype is related to the Binance listing and high APR in the liquidity pools. Now let's ask this question: If they had chosen to create a mini pool for farming the in-game token, could it be famous and overvalued as much as it did?
Currently, money is wandering in the BSC ecosystem and any project with a working system can go and take some liquidity on itself. Liquidity is everything in this era. It grows with expectation, speculation, and money at the same time. This is what makes being De-Fi friendly crucial.
The Era of Opportunities in Decentralized Finance
Pancake is leading the way. People lose their minds just for the sake of this token. What if a new or some new coins can come up with brilliant solutions or use cases to feed themselves with the flowing money on Pancake?
This could be the best way to show off your work by being adapted to the growing interest. It can be seen as serving according to the choices of your customers. Never lets you down 😄
Getting used to new coding: Wrapped Bitcoin Cash / bBCH
At the initial stage, it may sound weird or useless naturally. Yet, when you look from the outer perspective, you give options for people to use the same value, Bitcoin Cash as of speaking, for their transactions and daily use. One may only have a Binance Smart Chain wallet and gets to a Coffee Shop, s/he can use bBCH that is backed by BCH.
Similarly, one can provide liquidity by using the wrapped version of Bitcoin Cash to support any project or to make gains. Simply speaking, this is the combination of intrinsic value with liquidity flow. In either case, it's always a win-win but for fraud actions like impairment losses or rug pulls.
Wrapped Crypto Ecosystem
Just take a look at the crypto market in 2019 and compare the situation with today's market. Even, imagine the market and possible projects in 2023 and tell me the solutions that they are likely to serve for us.
Interblockchain Communication. Integrating the value to separate bases to enhance operations. Not rocket science, simple and effective...
I was one of those guys who were against the wrapped X coin ideas. However, as long as you back things up with solid assets, it can be bX, WX, cX...
Rule 1: it has to be backed by something solid.
Rule 2: it can be replaced with the other version without any problem.
Then you can even wrap me and let me operate on distinctive blockchain projects under different titles 😌
Final Words,
Try to explore Decentralized Finance systems and working mechanisms. I know it was nearly impossible for common people to be involved in Ethereum De-Fi projects but Binance Smart Chain charges quite low fees while providing countless options to make gains according to your investment.
Thanks to #CUB De-Fi, I searched and learned a lot as I became a De-Fi investor. Now, CUB enables me to diversify my investments on both liquidity pools and BSC in general. Neither banks nor Crypto-banks can reach such APR levels to become more profitable for the investors.
While the train is still in the station, it may be better to take a glance at it. The concept of De-Fi matches with the rationale behind the crypto world and tokenization to great extent. The solid projects will eventually thrive each year. At that point, being an early investor can be like buying Apple shares at single-digit prices.
Thanks for reading,
if you have any experience in De-Fi, share with us 😌
I will not use the centralised Binance Chain. Either Ethereum or Moeing or both.