This year has been an exciting one in terms of growth for the DeFi community. This sector went from concept to a thriving industry in months. Sadly, the accelerated pace of growth has left the market unbalanced. In its current state, investors are left out in the cold on many occasions. The lack of true decentralization and innovation has led to a spree of duplicate platforms all claiming to be the best. Luckily, some protocols shine brighter than the competition.
DeFi is new, exciting, and profitable for users who understand what platforms are worth investing in. Sadly, the market is also filled with projects that don't push the envelope in terms of innovation. These projects are set to fall to the wayside in the coming months as the true value of profitable platforms becomes common knowledge to DeFi investors.
One such platform that already has the attention of investors in the market is DEFLAx. This unique protocol attempts to provide investor alternatives to some of the oldest issues in the crypto market. For example, the way ICOs are set up today, people provide financial support for startups and then are left at the mercy of the company in terms of receiving their investment, token lockups, and team distributions.
The problem with this scenario is it negates the reasons why an investor would seek to participate in an ICO presale in the first place. Pres-sale investors are looking to arbitrage trade their investments at a later date, usually at the actual ICO launch. However, because most ICOs leave investors with no control over the issuance and distribution of the project’s tokens, this scenario doesn’t always play out as investors envision.
There are numerous occasions that ICOs have issued their team tokens before the ICO release date. This occurrence poses a huge risk for investors because it reduces the demand in the market before an investor’s ability to capitalize on early investment decisions. When this occurs, investors can see their profit margins dwindle.
Worst of all, most DeFi firms depend on inflationary tokens to sustain operations and derive value. These firms must issue more tokens to keep the liquidity in their pools active. The problem with this strategy is that every issuance detracts from the overall value of the tokens in circulation. Again, investors are left holding the bag when the smoke settles.
DEFLAX Takes the Initiative
The innovative development team behind DEFLAx took the road less traveled with their strategy. The company is all about transparency and providing investors fair opportunities. This desire is evident in its token launch strategy. The company conducted no pre-mines of its tokens. Every single DEFLAx user had to mine DFX tokens independently.
Contribution Mining
To accomplish this task, a revolutionary new consensus mechanism was developed. The mechanism known as Contribution Mining ensures that all token distribution occurs on-chain and with full transparency amongst the DEFLAx community. Interestingly, DEFLAx developers claim that Contribution Mining is far more energy-efficient and secure than Proof-of-Work consensus mechanisms.
A More Efficient Alternative
As of late, there has been a lot of discussion about the ecological footprint of the crypto sector. First-generation coins such as Bitcoin require enormous amounts of energy to maintain their network. While most of this energy comes from renewable sources at this time, it still requires a huge drain on the power grid, as well as, the need for expensive hardware. DEFLAx does away with these requirements and replaces them with a faster and more efficient alternative.
DEFLAx Tools
DEFLAx introduces investors to endless earning potential via the integration of various DeFi functionalities. At its core, DEFLAx is an automated yield aggregator and native token mining platform. The platform borrows the most popular and in-demand features from the competition and improves upon them with new and better technologies.
Staking
DEFLAx offers users the ability to earn passive income via a staking mechanism. Staking cryptocurrency is one of the most popular ways to earn free crypto. Consequently, staking is one of the core functionalities of most DeFi platforms. DEFLAx offers competitive staking rates and an easy-to-navigate system that makes it simple to earn.
Yield Farming
Yield Farming is another popular DeFi function that is in high demand. Yield farming takes the traditional bank lending business model and flips it on its head. In a yield farming scenario, users lend their crypto out to other users via lending pools. Users can then borrow these funds with interest.
Liquidity
DEFLAx offers a third way for you to earn some extra crypto easily. You also earn when you provide liquidity to projects in the ecosystem. The process is similar to yield farming in that you will decide how much crypto to lend out. However, instead of users borrowing your crypto with interest, you choose from project liquidity pools to bolster their efforts.
dTRADE Exchange
The DEFLAx ecosystem ensures liquidity for investors via a collaborative exchange named dTRADE. This hybrid exchange functions similarly to Uniswap in that it features an open token registration and a decentralized protocol. However, the platform improves on some of Uniswap's shortcomings such as the introduction of a better interface and the use of the DFX deflationary token as its main utility token.
DEFLAx - Investors Win Big
DEFLAx is well on its way to return lost value to the crypto sector. The company appears to have a strong understanding of the DeFi sector and what features and upgrades will be the most valuable to users. In this way, DEFLAx raises the bar in terms of transparency and earning potential. For these reasons, you can expect DEFLAx to play a prominent role in the market moving forward.
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