Traditionally, if you want to borrow US$10,000, you first need some assets or money already in the bank as collateral.
A bank employee reviews your finances, and the lender sets an interest rate for the repayment of your loan. The bank gives you the money out of its pool of deposits, collects your interest payments and can seize your collateral if you fail to repay.
Everything depends on the bank: It sits in the middle of the process and controls your money.
At the same time “DeFiChain” keeps its own consensus mechanism and function set, allowing for all those characteristics that Bitcoin does not inherently have. This is achieved by DeFiChain being a dedicated non-Turing-complete blockchain, designed specifically for the decentralized finance (DeFi) industry built on top of Bitcoin.
2 thoughts on “The rewards you can get with DeFi are insane!”
Yeah you right, crypto can make or break you. You just have to be smart.
I’ve got my eyes on Deip for a while now. A web3 protocol that tokenizes intangibles in the form of fractionalized NFTs.
I agree the rewards are crazy as hell. In my country depositing funds in a savings account should give you 2% interest in a year. But that’s only on paper, most banks don’t give a dime. With Hyperdex I get 15% apy for staking and it’s crazy as hell to me