Are you interested in DeFi and product development based on it? Find some details about its capabilities, advantages, and disadvantages from the DeFi development company.
What are the areas of the DeFi application?
DeFi is a financial ecosystem that, roughly speaking, can be used to receive or provide the same services as conventional banks or other financial institutions: money transfers, loans, currency accumulation, trading, insurance, etc.
The difference is that DeFi is open source, so every person can check the transactions. It is based on blockchain technology and smart contracts, which allow the saving of data that cannot be technically deleted or changed imperceptibly. Crypto is used as currency. The funds are not stored in one place (a conventional “bank”) but distributed, i.e. decentralized.
Successful DeFi projects include smart contract platforms, exchanges for tokens, lending platforms, etc.
What are DeFi’s pros and cons?
The advantages of DeFi projects include the following factors:
- Immutability. Once an operation has been written to a block, it cannot be deleted or changed. Therefore, the risk of fraud is minimized.
- No borders. People all over the world can access financial services. The only condition is to have an Internet connection.
- Lack of bureaucracy. People don’t need to provide personal documents, photos, etc. to register on the platform.
- Speed of operations. DeFi projects do not have intermediaries when making transfers, including international ones, so they are carried out faster and cheaper.
The main disadvantage of DeFi projects is that the user is responsible for themselves. If the user makes a wrong transfer or loses the account password, they will have to solve this problem themselves.
What products does Definme develop?
Definme helps companies develop DeFi projects. Here is a partial list of projects that we develop:
- Decentralized exchanges
- Lending & borrowing platforms
- Synthetic assets
- Yield farming development
- Staking platform development
- Liquidity pools, etc.
A new fintech revolution is on the way, so you should be ready for it. Companies that will be the first to enter this market, which is not yet crowded, will have a strong chance of success.