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KEPLERSWAP: The Project Built around DeFi 2.0

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KEPLERSWAP: The Project Built around DeFi 2.0

KEPLERSWAP: The Project Built around DeFi 2.0 Blockchain PlatoBlockchain Data Intelligence | Vertical Search AI

As we all know, DeFi is a short phrase of decentralized finance. It can also be known as an umbrella term that offers wide range of concept and purposes for a variety of applications and projects in the public blockchain space geared toward disrupting the traditional finance world. Inspired by blockchain technology too, DeFi is referred to as financial applications built on blockchain technologies. Cryptocurrencies have exploded into a trillion-dollar industry today, sparking a wave of worldwide financial disruption.

At the heart of cryptocurrencies today is a remarkable history of innovation that goes back to the 1980s, with advancements in cryptography. Since then, a series of events have shaped crypto space; the first cryptocurrency, Bitcoin, being the most prominent. Despite its spectacular growth in the past 12 years, financial services have very slowly appeared for Bitcoin mostly due to its inherent lack of stability and adoption. Mainstream institutions won’t accept a Bitcoin loan because of its significant price volatility , it makes Bitcoin a poor asset to plan any investment accurately.

Things have change quickly and so drastically in the crypto space, and the most fascinating part of it all is that decentralized finance (DeFi) is the current trend . It’s really an exciting space to be, undoubtedly. If you’re still unaware, let’s dig a little deeper into DeFi, learn more about it and what it has to offer.

DeFi is referred to as financial applications built on blockchain technologies, typically using smart contracts. Smart contracts are automated enforceable agreements that do not need intermediaries to execute and can be accessed by anyone with an internet connection.

DeFi also consists of applications and peer-to-peer protocols developed on decentralized blockchain networks that require no access rights for easy lending, borrowing, or trading of financial tools. Most DeFi applications today are built using the Ethereum network and Binance Smart Chain network, but many alternative public networks are emerging that deliver superior speed, scalability, security, and lower costs.

How did DeFi get its start?

Humans bartered initially for goods and services. But, as humans evolved, economies evolved: We invented currency to make it easier to exchange goods and services. Subsequently, coins helped usher in innovations and created better levels of economies. However, progress comes at a cost.

Historically, central authorities have issued currencies that underpin our economies, which eventually gave them more power as more people began to trust them. However, trust has been broken from time to time, which makes people question the centralized authorities’ ability to manage said money. DeFi was developed based on the idea of creating a financial system that is open to everyone and minimizes the need to trust and rely on a central authority.

It’s argued that DeFi started in 2009 with the launch of Bitcoin, which was the first p2p digital money built on top of the blockchain network. Through Bitcoin, the idea of ushering transformation in to the traditional financial world using blockchains became an essential next step in the decentralization of legacy financial systems. The launch of Ethereum and, more specifically, smart contracts, in 2015 made it all possible. The Ethereum network is a 2nd generation blockchain that first maximized the potential of this technology within the financial industry. It encouraged businesses and enterprises to build and deploy projects that formed the ecosystem of DeFi.

DeFi brought a plethora of opportunities to bring about a transparent and robust financial system that no single entity controls. But the turning point for financial applications started in 2017, with projects facilitating more functionalities in addition to just money transfer.

Comparison between Centralized Finance and Decentralized Finance

Financial markets can enable great ideas and drive the prosperity of society. Still, power in these markets is centralized. When people invest in the current financial system, they relinquish their assets to intermediaries, such as banks and financial institutions , this keeps the risk and control at the center of these systems. Historically, we’ve seen bankers and institutions failing to see risks in the market, as seen in the 2008 financial crisis. Undoubtedly, when central authorities control money, risk accumulates at the center and endangers the system as a whole

But in decentralized finance, there is no intermediary between any transactions that’s needs to be carried out, thereby reducing the amount of risk that would have generally gone to systems or organizations such as the banks that do experience downsides at some point in time

DeFi 2.0 lending and borrowing

DeFi gave finance a new direction by enabling lending and borrowing. Widely regarded as ‘Open Finance’, decentralized lending offered crypto holders lending opportunities to gain annual yields. Decentralized borrowing allowed individuals to borrow money at a specific interest rate. The aim of lending and borrowing is to serve financial service use cases while fulfilling the needs of the cryptocurrency community.

Into the business of the day, KeplerSwap Project is known to be a project built around DeFi 2.0 and we’ve seen the beauty and wonders that comes with DeFi 2.0 as explained concisely above. The advantages of being able to carry out your transactions without the need for any intermediary that might shoot up the risk of losses since this intermediaries can also experience some losses at some point.

So in conclusion, my advice to you is that you do well to be a part of KeplerSwap Project so you get to enjoy the benefits that comes with the DeFi 2.0 platform.

For more informations or questions please contact us via the following links below:

Website: https://www.kelperswap.io

Medium: https://medium.com/keplerswap_dex

Twitter: https://twitter.com/keplerswap

Discord: https://discord.com/invite/hyGbGvWfyW

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