The current state of the financial system worldwide makes businesses rely on banks and use high-cost financing like credit cards. As a result, retailers are prone to lose funds after every credit card transaction. This is why Defi was created. Defi offers solutions to problems associated with traditional financing.
What is Defi?
Defi is a short form for decentralized finance, a finance-based blockchain that does not involve middlemen such as brokerages, banks, or exchanges; instead, it uses smart contracts. Ideally, Defi is a system that allows sellers, buyers, borrowers, and lenders to use a software-based intermediary and interact peer to peer instead of the institution to facilitate the transaction. This process cuts costs.
Decentralized finance platforms allow users to borrow or lend, earn interest, and trade to speculate the price movements with cryptocurrencies, derivatives, and insurance against risk. Besides that, it reduces the inequality of the current system because all the users are treated the same.
Defi offers solutions to many problems including:
● Centralized control
● Limited access
● nefficiency
● Opacity
● Lack of interoperability
Future of Defi
Since 2020, Defi has shown tremendous growth and has taken the crypto ecosystem by storm. Last year, the Total Value Locked or measure of decentralized finance transaction value grew by 14x. In 2021, the Total Value Locked has doubled to $37.67 billion. Some experts argue that Defi will replace and take over modern finance. Currently, most well-known crypto exchanges have opened Defi platforms. Among them, Gate.io’s Hodl & Earn platform is one of the most noteworthy in the industry.
Gate.io Hodl & Earn
Gate.io Hodl & Earn allows users to earn passive interest income in many ways just by holding assets. “Lock-up and earn” products make users lock crypto for some time. It does not allow early withdrawals. When the term ends, principal and interest are released automatically. Additionally, PoS staking products can use crypto anytime while getting daily interest with the crypto balance. Gate.io provides many coins on the staking list as well as bringing more interest.
You can participate by:
● Going to the website https://www.gate.io/hodl and clicking “Hodl and earn”.
● Check out all the products on the page.
● Click the project and navigate to where you are interested.
● Click the “purchase now button” and participate, depending on your balance.
● If the balance is not enough, Click “Buy crypto” to purchase more.
● Click the “My holdings button” to see the records after buying.
Defi ecosystem on the Gatechain
Gatechain is a public blockchain that has decentralized trading and on-chain asset security. It provides a unique Vault account to handle abnormal transactions and a clearing mechanism to handle private key loss and theft. Furthermore, it provides a complete Defi ecosystem where users can explore Defi and enjoy the latest products.
The ecosystem on Gatechain offers:
● Low fees
No more insane fees. This solves the problem of high fees.
● Instant transaction
The transaction confirmation takes just minutes.
● Highly secure
It supports a revocable transaction function and so it issecure.
● Clearing mechanism
Users are guaranteed asset recovery if there is theft or private key loss.
Advantages of Gate.io Hodl & Earn
● Many Defi currencies
Gate.io has more than 70 Defi currencies.
● High leverage
This platform features perpetual contract trading that supports up to 20x leverage.
● Rewards
Gate.io Hodl & Earn rewards Defi currency to major currency holders and holds airdrop benefits and free giveaway activities from time to time.
Gate.io is a global exchange that supports 500+ cryptocurrency transactions. The number of registrations exceeds 6 million from 224 countries and regions around the world. On Gate.io, users have more choices of investment options.
Gate.io main products
● Trading
This includes C2c trade, spot trading, and margin trading.
● Perpetual contract trading
The perpetual contract does not expire, and it involves peer-to-peer funding. Also, it features a fair price marking for making the price near the index price.
● Financial management
The platform allows users to learn trading strategies by following experienced traders with good records.
● Hodl & Earn
This blockchain earning platform allows stable earnings and gives financial products like lock up and non-term earnings.
● Startup
This is a blockchain platform that offers discounts to decentralized blockchain assets.
