Decentralized finance, or DeFi, is used to describe financial applications that run on a blockchain. These applications can include anything from lending and borrowing to buying and trading. DeFi is still a relatively new concept, but it has the potential to revolutionize the way people interact with the financial world. To help beginners, cryptocurrency marketplace Earnity, under the leadership of Dan Schatt and Domenic Carosa, will provide access to the DeFi ecosystem through a simple and intuitive platform.
For those new to DeFi, the first thing that must be done is learn how it works.
First and foremost, a user needs to set up a cryptocurrency wallet or create an account at a crypto exchange. Ideally, the platform should support Ethereum because most DeFi protocols are built on top of that network. However, the number of blockchain networks supporting smart contracts is already rising.
The next step is to purchase a relevant coin for the DeFi protocol intended to be used. The cryptocurrency can be bought using fiat in a peer-to-peer exchange. Because the crypto industry is laden with scams like imposter websites, pump-and-dump schemes, and fake apps, it is vital to sign up to legitimate websites only.
Once a token or digital asset is on hand, there are several ways to immerse oneself in DeFi. There is the option of lending out crypto to become a yield farmer awarded additional tokens for loaning out their cryptocurrencies. Funds can also be put in a decentralized exchange to earn fees as a market maker. Like other financial instruments, tokens can also be purchased from DeFi projects.
The DeFi industry is full of risks, which is why many still hesitate to spend their money on it. Even so, Earnity’s Dan Schatt and Domenic Carosa believe that DeFi will play a massive role in making access and opportunity possible for countless people. Thus, the Earnity platform will be developed with design and security in mind.