This is just a little introduction to one of the primary defi platforms I use, and the reasons why I believe it has a long future in crypto.
Defichain is primarily a fork of Bitcoin. Essentially DFI brings defi to one of the most secure, open sourced, decentralized, well tested,, and secure blockchains in the industry.
DFI is one of the best passive income earning coins. For example, if you have 18-21k worth of holdings in the protocol, you should be earning between 13-15k per year in passive income. I gave a price range to allow for price action fluctuations/ any other minor events.
Now that's almost 100% returns per year. Depending on your risk tolerance and length of time you want to hold there are multiple ways to interact with the protocol.
1. Cake DeFi
2. Defichain mobile
3. Defichain desktop
4. Chrome extension (in development)
The protocol itself currently has a fully decentralized dex, liquidity mining, and staking currently. They are on track to integrate atomic swaps, decentralized flash lending, and synthetic stocks by end of year. The team has a solid plan for the coming years as well which you can find- DFI
Right now there are 2 ways earn passive income with DFI. You can either liquidity mine or stake DFI. DFI currently has 7 lm pools. Btc/dfi eth/dfi bch/dfi ltc/dfi usdt/dfi usdc/dfi & doge/dfi.
1. Cake is the most user friendly, accessible, and easy way to profit from DFI. The downside: it's a centralized platform and you do not own your private keys. Cake also takes a small percentage of your rewards.
On a side note, Cake along with DefiChain is releasing an update staked and liquidity mining "freezer." This freezer commits your tokens for a period of time up to 2 years & guarantees higher returns for this commitment.
2. The mobile app - almost brand new. Does not connect with the desktop app. Easy, lightweight way to supply liquidity to their pools.
3. Desktop app - for the more advanced users. You own your own private keys. No kyc. You get full liquidity mining rewards & commission from every swap within the dex. Just beware you lose you keys, there is no getting your stuff back. It's your responsibility.
4. Chrome extension- should be available in the coming months.
Personally, I use the full desktop version because I wanted the full rewards & custody of my keys, but I do have a smaller portion of my DFI in the freezer on Cake for long-term holding. You can really set it and forget it. Have rewards automatically reinvested and freeze for up to 2 years.
Market cap is just under 1 billion right now. Price of DFI has ranged from $2.6-2.9 with overhead resistance at about 3$ usd. The price action shares a tight correlation with BTC, BCH, & LTC. More info on DFI can be found Analytics, Income dashboard, and Dfi home learn. Sharing a tight correlation with Bitcoin, investing in DFI/BTC liquidity pool you can expect price growth to be somewhat in line with bitcoin.
DFI is also in the process of approving and voting for community proposals on their github. If you think you can be of value to the project, submit your proposal on their github and good luck! There is a lot of DFI up for grab. So if you have some sort of talent that can be of use to Defichain please submit your proposal soon.
Lastly DFI is also running an affiliate program Here. Basically, you just shill DFI on your socials in return for real DFI in your wallet.
Ultimately, the reason why I use Defichain as my primary defi protocol is because I'm not sacrificing anything. Defi on Eth is simply too expensive for the average trader. Big money flocks to Eth, and there is a long line of new developers just waiting to run on Eth even as more transactions are processed and faster. Gas prices on DFI as so small that even the smallest investors wouldn't be bothered.
The next most notable defi option would be through BINANCE on the Binance Smart Chain. Now BSC is really more or less a more centralized copy of ETH. It's not quite so simple, and there are tons of low cap gems that go 100x on BSC, but there is the centralization issue. In my opinion safety is my main concern using defi on BSC. Their main advantages are protocols can quickly be implemented, and gas prices remain low.
Those are the big 2 blockchains when it comes to decentralized finance. Now there are quite a few other layer 2 or unique blockchains that are in the race to utilize protocols and excess liquidity that Eth cannot handle. Examples that come to mind are those such as Avalanche, Cardano, and Matic. Many of these new blockchains/ protocols are growing rapidly as Eth gas prices remain high.
Among them are some very solid projects, but the major issue they all generally share is they are new and untested. I hold a bag in quite a few of these different protocols. There is tons of active development in this area with new projects popping out seemingly by the hoard. It's hard to keep up.
I prefer DFI because it's on the BTC blockchain. BTC is fully open sourced, oldest, and longest tested of all the blockchains. Takes away any decentralization worry, or code issues.
"Bitcoin is increasingly being seen as a store of value, and it is perceived as the standard by which other cryptocurrencies are measured. While people’s portfolios vary widely, Bitcoin remains the standard currency that almost every crypto investor holds as a major part of their holdings. The tremendous community and ecosystem around Bitcoin bode well for its long-term viability as a store of value.
For that reason, creating decentralized financial services around Bitcoin represents a tremendous opportunity that has yet been untapped, partially because of the difficulty of creating smart contracts that work with the Bitcoin network, and partially because of the fractalization of the development community to many side projects. We believe this tendency of the development community to jump on the newest developments has drawn attention away from the real story: Bitcoin is here to stay.
Thus, we believe, building a DeFi Blockchain on top of Bitcoin would bring the best out of both worlds: Bitcoin’s stability and immutability and DeFi-chain’s scalability and functionality." ( Website)
Security + low transaction cost + high yields + fully decentralized and transparent. That's why I prefer using Defichain. It brings functionality to bitcoin. Which ultimately will benefit the price of both coins in the long term.
Referall links below
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https://app.cakedefi.com/?ref=887258
Get $20 in extra DFI with kyc & $50 min deposit.
Other links
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DFI Faucet
White Paper
Affiliate promo
