Decentralized financial -The creation of a consumer-friendly product
Without any doubt, the world is yet to recover fully from the unprecedented price performance of Bitcoin in the last few months. More remarkable is that the digital asset is not showing signs of slowing down anytime soon. Nonetheless, there is more to the growing market visibility of cryptocurrency in the last 12 months than meets the eye. It is impossible to analyze the success of the crypto market in 2020 correctly without factoring in the contributions of the emerging DeFi landscape. With over $18 billion worth of assets locked in the market, the buzz surrounding the yield generating protocols of this ecosystem has brought about new growth dynamics to the already star-studded crypto industry.
Today, we are witnessing a growing list of decentralized financial innovations poised to usher in the next phase of crypto development. Already, the number of unique Ethereum addresses participating in the DeFi ecosystem has crossed the 1 million mark. This metric is even more potent if we consider that the year began with just 100,000 DeFi users. Hence, in under 12 months, the size of the market has increased by 10 folds.
However, bearing in mind the propensity of users to own multiple addresses, this data may not accurately represent the state of things. If we assume that users, due to one reason or the other, operate more than 1 unique address, then we could argue that the DeFI ecosystem is not as distributed as portrayed. The essence of introducing decentralized finance is to distribute the governance and wealth of the crypto economy such that financial products are not susceptible to the actions or inactions of a cluster of individuals or entities. Herein lies the core fundamental of DeFi.
DeFi can seem gloomy, others will say that it is everything you don’t understand about Computers combined with everything you don’t know about Finance. Its complex nature makes it a lot harder to attract a mainstream following. To this end, solutions like Juiceswap have emerged as democratizing tools for the DeFi landscape.
In other words, interested users can leverage the simple design and methodology of the Juiceswap platform to boost yield and eliminate the risks and complexities that come with DeFi. Other than liquidity mining, the platform also grows yield while staking or completing airdrops. It has developed the EGG Protocol that interfaces with the DeFi ecosystem for seamless participation in yield farming at no extra cost.
On the other hand, DeFi platforms like Uniswap are used by tech-savvy early adopters for whom it sounds like child’s play, the platform taking meticulous care of its user experience. However, we can not imagine a common user feeling comfortable using Uniswap, Metamask and securing private keys.
We cannot boldly call this financial architecture “Open Finance” if new users have to pass through complex loops to participate in yield farming or trade DeFi derivatives. Hence, the need for simple interfaces that democratize DeFi and make it accessible to a larger audience.
