Decentralized finance (DeFi) reached more than $ 150 billion in total locked value (TVL) in the last year. Despite this exceptional increase in TVL (from less than 1 billion in early 2020), the number of users interacting with DeFi still pales in comparison to the number of people investing in the rest of the crypto market, and these figures They are a drop in the bucket compared to those posted by traditional finance.
DeFi’s TVL is just a fraction of the $ 2 trillion valuation of the entire crypto market. Furthermore, the entire crypto market is valued at a lower figure than a single publicly traded company, Apple. Putting these numbers side by side, it could be argued that DeFi’s growth potential is staggering.
That said, peer-to-peer financial services delivered via blockchain technology may have an optimistic future ahead of them, but they will need an extra push to increase their adoption beyond the tech-savvy crowd.
This is where the decentralized trade copy application (dApp) FNDZ opens DeFi’s doors to mass adoption by providing an easy-to-use platform to learn how to participate in token exchanges on decentralized exchanges (DEX) by following expert traders.
Shifting the growing interest in crypto markets to DeFi
Social trading platforms have helped increase the number of retail traders over the past decade, and copy-trading has become an incredibly popular way for new traders to learn about the markets. FNDZ is providing a similar service for crypto trading that makes it easy for users to enter DeFi through its decentralized and transparent copy exchange platform, so users don’t have to make the DeFi journey themselves.
Valentino Cremona, Technology and Operations Leader at FNDZ, says: “Moving users away from centralized services and into decentralized commerce is a big step forward for mass adoption of DeFi. FNDZ ensures that newbies can take advantage of the trusted benefits of blockchain technology through a user experience that rivals most centralized exchanges (CEX). “
Differentiate easy-to-use DeFi from centralized platforms
Although FNDZ has been developed to match the ease of use of a CEX, decentralization and transparency distinguish FNDZ from centralized trading platforms in several ways.
Centralized platforms offer their services off-chain and can charge hidden fees, and these fees can consume any profit made through trading. In addition to reducing profits, these platforms expose investors to unnecessary risk through the use of contracts for difference (CFDs).
In short, investors do not retain custody of the assets they buy through their trading platform when signing a CFD. Consequently, bankruptcy, mismanagement, or platform security flaws leading to a hack could mean that investors can witness their holdings disappear overnight.
Robin Ubaghs, Marketing and Growth Leader at FNDZ, says: “FNDZ solves these problems by embracing decentralization. Users retain custody of all their assets when using FNDZ, and the platform allows users to interact with their copy-trading services through an easy-to-use dApp run by an audited smart contract distribution, rather than just a contract that can attract exploits, for greater security “.
Benefits for merchants of all levels
The fees for trade copy services are transparent and expert traders each user can follow for guidance in the cryptocurrency market publish them in advance, and transactions are made through DEX, where transactions can be traced to through chain data. Here, it is important to note that DEXs operate as automatic systems that ensure with 100% certainty that no intermediary can interfere with a token exchange, so operations are always executed fairly and according to code. .
Another benefit of leveraging an open source platform like FNDZ is increased access and rewards for merchants who want to monetize their followers. For example, FNDZ allows traders to receive a commission for each user who wants to copy their trades. A merchant can then wager FNDZ to get discounted fees and rewards from each of their merchant’s winnings. The best part is that anyone can create a commercial vault and the most successful vaults will be ranked and indexed by an algorithm to ensure transparency and recognition are met.
Complete decentralization from the bottom up
FNDZ ticks all the boxes for what makes a DeFi platform such a powerful tool, and strives to make this powerful tool accessible to everyone, regardless of their prior DeFi knowledge.
In a new nod to DeFi standards, FNDZ will operate as a decentralized autonomous organization (DAO), meaning there will be no traditional corporate hierarchy running the platform. Rather, rather than a CEO, anyone who owns $ FNDZ tokens will receive voting power on how the platform operates in the future, making FNDZ a member-managed platform, for its members.
DeFi is growing, and the goal of the DeFi community is to get as many people as possible to join. Since DeFi relies on the power of people to make the system work, the more people who participate in DeFi, the better DeFi will work for everyone who participates. Oriented toward this goal, FNDZ’s DeFi-centric copy-sharing platform could be the catalyst that finally brings DeFi to the masses.
Image by Sergei Tokmakov Terms.Law from Pixabay