DeFi, aka decentralized finance, is a relatively new trend in the cryptocurrency industry, which has seen rapid growth in consumer interest in 2019-2020.
Previously, DeFi’s share of the cryptocurrency market was relatively small, but in 2021, the sector has grown rapidly and attracted many traders and investors with its capabilities.
Currently, most DeFi services provide loans secured by cryptocurrency, accept cryptocurrency deposits, or create decentralized platforms for direct lending. Ethereum and, less frequently, Bitcoin is typically used for transactions.
DeFi is a relatively new and not yet established area of cryptocurrency infrastructure, and many things need to be finalized. Because of this, at this stage it is difficult to highlight all thepros and cons of DeFi. However, there are already some points we can say for sure.
Why DeFi projects are needed
The emergence of the DeFi sector is a huge leap for cryptocurrencies, as traditional financial institutions finally have competitors that can shake their monopoly on controlling cash flows. Decentralized finance is good for both users:
– Services can be obtained bypassing a bank and even where a bank simply doesn’t exist;
– Virtually anyone can put their own asset on the market;
– Payments are no longer processed for several days at a time;
– Fees and interest rates are several orders of magnitude lower;
– It is now possible to make money from cryptocurrency not only by trading.
Decentralized finance cannot yet boast of such a variety of services as the traditional market, but even those that are available significantly expand opportunities for cryptocurrency holders.
Products offered by DeFi
Generic DeFi-related products are usually born out of a combination of blockchains, open protocols, and digital assets – with traditional financial structures. One company that tries to open the door to DeFi for all people.
Wellfieldwas created to develop programs and applications that put the full potential of DeFi into the hands of ordinary people. The company spends most of its time researching the market and figuring out exactly what people need. Wellfield has chosen to be uniquely positioned in the marketplace. Developing on top of public blockchains like Bitcoin and Ethereum has always been one of the most difficult paths, but also the most efficient. By combining smart-contract technology and other DeFi protocols, Wellfield is creating truly revolutionary solutions.
Right now, the company has two brands. One, MoneyClip, has been developing its app since 2019. The app allows users to attach their bank account to a blockchain and enjoy all the features DeFi offers. In the third quarter of 2021, a beta version of the app became available to users, with an official full launch planned for late 2021.