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As Ethereum Rises Above $200, Whales and Small Fish Turn to DeFi for Cryptocurrency Returns
Ethereum has been on a rare lately, and is now solidly above $200 after a 10% surge on Tuesday. Investors in the second largest cryptocurrency are eagerly awaiting next month's Bitcoin rewards halving, an historical catalyst for cryptocurrency and Ethereum 2.0. Another major reason the coin has surged is that whales and small fish alike are embracing DeFi like never before.
What is "DeFi"?
DeFi is decentralized finance. Decentralized finance is essentially open-source financial services on a blockchain that is free for anyone to use.
You can read a detailed and lively discussion on what DeFi is at the link below from the Coinbase blog:
https://blog.coinbase.com/a-beginners-guide-to-decentralized-finance-defi-574c68ff43c4
Currently, over $600 million of Ethereum is locked in decentralized finance contracts. DeFi encompasses services like Compound Finance, Uniswap Exchange and Maker Dao. DeFi is a large and growing industry that can be easily accessed by users all around the globe. DeFi platforms are based on smart-contracts and are available for everyone with open-source code. You can be your own banker and profit from economic activity on the blockchain.
Whales and small fish are turning to DeFi for returns, and are staking their ETH into smart contracts.
Is DeFi Safe? How can we be safe using DeFi?
This is a great question. As whales and the rest of us allocate millions of dollars into smart contracts, treat a DeFi platform like any other investment. Investigate the DeFi development team, do not invest more than you can afford to lose and spread you or money out among DeFi dapps.
You can read about DeFi security here:
https://quantstamp.com/blog/how-to-use-defi-safely
As a user of DeFi, I can speak to the attractive returns. I use Compound Finance to gain interest income on Coins I was holding in my wallet. Stay safe and have fun in the DeFi ecosystem. We are pioneers in this new space
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Originally published in my Publish0x account I own at:
Also published in my Hive.io account as anarchy999 and my Steemit account as anarchy999
Sources:
Picture from Pixabay.