DeFi, a new way to earn and save more

How to Earn and Save More in the DeFi World

Walking into a currency exchange office and driving out a few minutes later with a new “Humvee” sounds like a scene from science fiction. But not in the DeFi world. Decentralized finance, otherwise known as DeFi, is breaking down walls between financial services with blockchain technology.

DeFi gives everyone access to financial services without using banks, exchanges, brokers, or other intermediaries. Trustless and permissionless financial services are delivered peer-to-peer via decentralized apps called DApps.

Since DApps replace the intermediary with peer-to-peer transactions, transaction costs are significantly reduced. Buying a financial product is as easy as buying a Coke from a virtual vending machine. Transfer your crypto coins from your appointed wallet. Your financial product is automatically delivered by a self-executing smart contract.

What makes DApps so versatile is their ability to talk to one another. We call this ability interoperability. DApps’ interoperability is creating new value from financial products and services. Imagine one interface from which you could direct the gains in your cryptocurrency trading account towards collateral for your new car loan. DeFi DApps are emerging daily with new interactive ways for financial services customers and providers to earn and save more.

Lower Cost Peer-to-Peer Transactions

P2P lending is one of the most popular DeFi services. You do not have to worry about loan officers looking down their nose at your credit history. Deposit your crypto as collateral for the loan and the smart contract issues you the money.

Yield Earning Opportunities

In the DApp world, you can also make money acting as a provider of financial services. Anyone can provide financial services to a peer on the network and earn passive income. Opportunities to earn fees include:

Interoperable Digital Assets

A new breed of DApps is bringing true interoperability across countless applications, all the way from gaming to financial services. These DApps allow the products and services of many DApps to seamlessly interact with one another. You can manage all your DeFi accounts on one screen.

Stakers and yield farmers, for example, can more quickly seize yield earning opportunities. Imagine XYZ pool is offering high interest rates for staking USDT. On one screen, you view $4,000 in your UniSwap account and $6,000 in your Compound account. In one click, you swap COMP for USDT. In another click, you swap UNI for USDT. In a third click, you stake the $10,000 USDT in XYZ pool.

Of course, identifying pools with high-interest rates is time-consuming. More often than not, you will also fail to find the pool with the highest interest rate. Platforms such as CryptoLocally’s Finance Wallet V2 tackles this problem by automated staking and offers the best of both worlds: convenience and efficacy.

In the old finance world, the time and fees involved to withdraw funds to a bank account and deposit them to a new account would have eroded any gains from the higher fees.

The first fully decentralised P2P crypto trading platform!