What is a DeFi token that attracts the eyes of investors?Don't miss the new tide of cryptocurrencies!
In the summer of 2020, tokens that attracted attention other than major currencies such as Bitcoin appeared in the virtual currency market for the first time in a while.That token is the DeFi token. DeFi refers to decentralized finance and is expected to transform existing financial services and banks.
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DeFi token is a new trend of virtual currency
Apparently in 2020,Some changes occur in the cryptocurrency marketIt seems to be doing.
In 2020, the cryptocurrency market has caused an upward trend, but it will plummet due to the corona shock.
However, it quickly rebounded and achieved the high price before the corona shock.This series of movements is different from the one up to 2019, clearly showing that new funds have flowed into the cryptocurrency market, and as I have introduced several times, the new fundsPart of risk hedge investment by hedge fundsIt seems that.
And another is the virtual currency market where only major currencies are attracting attention, but there are some coins that attract attention in the market that was said to be almost grass coins except for major alt coins such as Ethereum and Ripple. It is born.
The best coinDeFi tokenIt is a virtual currency called.
What is a DeFi token?
What is DeFi?Decentralized FinanceAs a result, financial services provided by financial institutions such as banks (new attention-grabbing financial technologies and services such as securities, insurance, derivatives, and lending) are autonomously decentralized using blockchain.
Already popularDEX (Distributed Exchange), Stable Coin, Security TokenEtc. are DeFi, and most of them are built on the blockchain utilizing Ethereum's smart contracts.
DeFi tokens have been attracting attention since the middle of 2020,CoinMarketCap (DeFi token list)Etc. already provide a list of DeFi tokens, so you can easily find out what kind of projects you have.
DeFi tokens became popular in the summer of 2020Lending protocol CompoundThe release of the governance token is June 2020, but the project itself started in August 6, and it is a project that started around 2017, which was just a big boom in cryptocurrencies.
What is the difference between DeFi token and Bitcoin?
The difference between DeFi and existing banks will be described later, but as a problem before that, it is famous as a payment virtual currency.What is the difference between Bitcoin (BTC) and DeFi tokenMany people think that.
Bitcoin, known as the payment currency, is a virtual currency devised to change the world's remittance situation, as described in Satoshi Nakamoto's paper.In other words, it was a project to complete the remittance situation in almost real time with the remittance fee just like the remittance situation where the time and high remittance fee had been incurred until now.
On the other hand, the DeFi token is as mentioned above.A service built on smart contracts, etc. that allows anyone in the world to use services like those provided by existing financial institutions with peace of mind.Is what you are trying to do.
However, when talking about such services, many people will remember, "I think I've heard of it somewhere ...?"
It is known that many fraudulent projects were in the dark during the ICO boom, but it is also difficult to distinguish them from fraudulent projects if you only listen to DeFi technology.
Strictly speaking, it's also a technology that really tries to make the dream story previously used in fraudulent projects a reality.
Of course, most of the DeFi tokens that are currently in the spotlight are well-developed projects, but they may not be targeted by previously scam projects.
Perhaps because of that, the DeFi market is now experiencing amazing stories.
What,Bitcoin (BTC) is a popular DeFi (decentralized finance) coin developed on the Ethereum blockchainIt has become.
In other words, DeFi is attracting a lot of attention as a next-generation technology, but it is a virtual currency that is difficult for most investors to invest in terms of name recognition and security.Therefore,By using Bitcoin as a DeFi token, we secure the weaknesses of the current DeFi token, such as name recognition (brand power), security, and liquidity.I'm going to do it.
Tokenized Bitcoin has become one of DeFi's largest assets, with 2020 BTC (approximately $ 9 billion worth) tokenized in seven projects as of September 10.
Yearn.finance that surprised investors
In July 2020, DeFi tokens will be released, which recorded a soaring drama reminiscent of the 7 cryptocurrency surge.
Launched on July 7thyearn.finance (YFI).
Ethereum-based DeFi platform,yearn.financeYFI tokens will be available in the week after release$ 4661.97 (a little less than 490 million yen)Was recorded.
In the chart at CoinMarketCap, 80,379 yen starts, but in the Balancer pool, which is one of the pools where tokens were released,1YFI = 3 dollars (about 315 yen)If there is information that it was launched in, and this is the caseExpand the market price of 1000 times or moreYou have done it.
Of course, few people could buy it here, but at least if you bought it at the time of release, you would have made a lot of money.It was a market development that was reminiscent of December 2017.
yearn.finance is a decentralized aggregator ecosystem that optimizes token lending using lending services such as Compound and Aave, and tokens deposited in yearn.finance are converted to yToken and are the most profitable. It will be rebalanced regularly to take advantage of the high lending service.
In addition to yearn.finance (YFI), many DeFi tokens are attracting attention.
Let me introduce some.
There are still more DeFi tokens
The sharp rise in the price of yearn.finance (YFI) is reminiscent of the times when it was called the ICO festival, but in the DeFi (decentralized finance) market, the market is particularly driven by smart contract tokens.
Even at the momentCompound (CONP), Aave (LEND), Maker (MKR)Funds are flowing intoChainLink (LINK)Has also risen significantly.
Above all, the fact that the rate of increase of Ethereum is much higher than that of Bitcoin in the rebound market after the corona shock.There is also.
Published on April 2020, 4Compound (CONP)Is an ERC-20 token built on the Ethereum blockchain and acts as a governance token for the decentralized financial platform Compound.
Compound protocol runs on Ethereum blockchainDecentralized lending platformAnd users on this platformLending and borrowing virtual currencyYou can to be.
In other words, what is a lending platform?bankBecause it has a role likeYou can earn interest income by lending the virtual currency owned by the user, and you have to pay interest if you borrow the virtual currencythere is.
Following yearn.finance (YFI) and Compound (CONP), it is in the limelight as a new DeFi token.Aave (LEND).
Aave (LEND)The price soared on August 8, triggered by the news that Aave UK corporation was granted EMI (Electronic Money Organization) by the UK Financial Regulatory Authority (FCA), and until then it was the highest in the market capitalization ranking as a DeFi token. Was attached toMaker (MKR)I pulled it out.
Since then, it has been providing topics such as providing unsecured lending services, and even as of October 10th.Cryptocurrency market capitalization ranking 31stIt boasts the largest market capitalization of any DeFi lending service.
Comparison of DeFi and banks
The new coronavirus is about to change the world.
No, to be precise, the outbreak of the new coronavirus will result in a large amount of money being distributed around the world.The financial world has entered an era unimaginableI'm trying
Even in Japan, until a decade ago, the image of a major metropolitan bank was that it was an elite among the elite, but recently I hear that there are many young employees who retire after a few years of joining the company, rather than being employed for life.It is also true that the times when it was said that major banks would never go bankrupt are gone.
What appeared in such an era is built on the Ethereum blockchainDeFi platformAndUsers receive services on the DeFi platform that they would have received at a bankIt looks like
Needless to say, centralized banks and DeFi platforms are very different.
DeFi platformThe influence of the centralized management body is very small, and anyone can access it regardless of the place of residence or economic situation, which is different from the existing banking service that can only open an account in your own country. And change the way of financeIt is expected that
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