Amazon, Tesla, and Apple stock buyers have been wooed by the DeFi market after Synthetix Network Token and AAVE witnessed an unprecedented boom with a 20x & 200x respective rise in their returns in August alone. Those numbers could numb any investor where a $1000 dollar investment becomes $20,000 or $200,000 in roughly a month’s time, too good to be true isn’t it? But that’s what defines DeFi, as the growth disruptors in finance. The market has grown to double its number in just over a month’s time standing pegged at US$15 billion with a few of the tokens like Kyber, Synthetic, AAVE, Mainframe, and Akropolis as the pioneers of the global DeFi boom making investors richer overnight.
Why Are People Investing in the DeFi Market?
The CeFi or Centralized Financing market has many roadblocks like stricter regulations and slow penetration; thereby, making things complex for operations. That said, DeFi has worked upon these grey areas by;
- Filling up the insecurity vacuum of investors and lenders via community trust and privacy.
- Involvement of mainstream players from CeFi (JP Morgan, ANZ, Royal Bank of Canada) trusting/backing the sector.
- No-loss lottery scheme of investment with everyone getting the promise of a higher return on their investment.
- Lower Interest Rates in CeFi, especially, during the prevailing CoronaVirus Pandemic. DeFi has promised consistent returns, take, for example, Compound, which is offering an annualized 6.75% interest rate on investments. This has allowed greater market penetration even for those who aren’t well wired to the traditional banking system.
- Over 1 million conventional stock traders pumped 1$ billion in the DeFi market in August and received a 20x to 200x revenue rise within just a month’s time.
What has Made Amazon, Tesla, and Apple Stock Buyers look for investment in Hot Defi Market?
Last year, there were only 4 DeFi crypto projects: Maker, 0x, Augur, and Ren. Where have we reached in just over a year time, 11 with the addition of Aave, Synthetix, Compound, Kyber, Kava, Bancor, by next year, this time around, we will have many others like XACO coming, which is launching sooner. As we read, top crypto DeFi projects have capped over $7.3 billion. Perhaps, it will be needless to say, why even the conventional stock market is going crazy for DeFi, an unparalleled growth like this never seen before.
Future of DeFi: An Emerging Parallel Financial System In The Making
Unlike the CeFi or Centralized Financial System, DeFi belongs to the community where they can actively participate to determine and decide trading, lending, borrowing, payments, and insurance on a Peer-to-Peer financial system. The market has seen a 300% increase in the last 12 months starting at $317 million to $1 Billion in just over a year’s time. Secure funding regulated by smart contracts has automated funding goals and incentivization/remittance to the community.
“Akiva Lai, chief product officer at blockchain governance and auditing platform Maxonrow, highlighted the significant growth in the DeFi market. According to Lai as spoken to Defime.Finance Medium in February 2020: “It’s pretty astounding, to be honest. $1 billion in locked DeFi value may seem minuscule compared to legacy finance, but we need to examine it for what it could be — not what it currently is. Paired with the ballooning growth of exchange products, from derivatives to staking services, and it’s only natural that more users will tap DeFi products in the never-ending search for yield amid an uncertain economic backdrop of negative interest rates and slow growth.”
It is likely expected that in the future the challenges of bad debts and loan defaults will be resolved with decentralized financing where smart contracts will bar fund raiders from availing non-collateralized loans by proposing crypto DeFi good behaviour via bounties. The purpose is to incentivize the whole process in such a manner that temptation of trust or reward outweighs temptation for fraud.
How Can You Invest in DeFi To Ride Along With the Euphoria?
DEFIME.FINANCE Medium or Defime will be launching its pilot project powered by the newly minted XACO Tokens on Sunday, at 12:01 AM GMT, the 6th of September 2020, which investors can use to back consumer, DeFi, and Kickstarter projects. There will be a presale period of 24 hours which ends at 11:59 pm on Sunday, the 6th of September, where buyers will get a XACO for $1 per coin. If you buy more than 100 coins, you will get 10% for free in 30 days. If you buy 1000 coins, you will get 110 coins free in 30 days. The price of XACO will go up exponentially after 24 hours of presale period. Using the XACO Tokens, specific discounts, deals of the day, and opportunity to enter a growing DeFi market is possible for earning consistent returns on their investments or buy valuable products at half the cost in comparison to the traditional consumer market. To safeguard the interest of the community;
- A 10% premium will be adjusted in the liquidity pool for every project listed on the DeFi Finance Medium.
The purpose of 10% investment pooling is to make sure that the interest of investors is safeguarded against all kinds of frauds and non-compliance of operations as per DeFiMe operational community protocols safeguarding community participation and transparent governance.
Why Will XACO Be a Game Changer for DeFi Market?
XACO primarily rides on the principle of demand-supply dynamics. That said, XACO gives an unprecedented opportunity for market disruption in the consumer goods and Kickstarter project segments to fund innovative projects. With every sale or backing via XACO Token, you step ahead in your investment and financial goals. That’s similar to like, you get everything to win and nothing to lose. Back projects, if they work out, you can get returns in folds, if they do not work, you get your liquidity back. Thus, making all investments safe, secure transparent and always highly yielding.