🟢DeFi $VTR
Before we start the whole methodology behind Virtual Trader $VTR, we will address and explore the DeFi concept, as it is the basis for several applied technologies.
What is DeFi ? DeFi is the name given to the set of financial services and products, such as loans, transfers, and payment systems, that run on a blockchain, a kind of decentralized and immutable database. As a rule, these solutions are not controlled by intermediaries such as banks or other financial institutions. Operations in DeFi protocols are described and executed by algorithms and smart contracts, which are self-executing computer programs. A practical example to visualize how one works is a loan: -> An individual can take money from another person in a peer-to-peer negotiation. The form of transfer, the amounts, the interest, the collateral and all the details are defined in advance in these automated contracts, and put in place by them. There is no need to go to a bank or other entity, with its salty fees, to intermediate the transaction. The main banner of the technology, therefore, is to create a global financial system that is decentralized, independent, cheap, less bureaucratic, and accessible to all.
- DeFi Applications
See below the main DeFi applications. ->Decentralized Exchanges DEXs, as they are also called, are brokerages where users can trade cryptocurrencies among themselves (peer-to-peer) without intermediaries. On these platforms, everything is controlled by algorithms and smart contracts. They are different from centralized exchanges, which have a team and a company in control, as is the case with Bitcoin Market and Binance, for example. Two examples of DEX are Uniswap (UNI) and PancakeSwap (CAKE). ->Lending Platforms They function like banks and finance companies, and give users the possibility to take out loans in cryptocurrencies. The difference is that there are no intermediaries, and everything is governed by smart contracts. In general, digital assets must be pledged as collateral to access the funds. MakerDAO and Compound are some examples. ->Stablecoins These are cryptocurrencies paired to some asset, such as gold, silver, or fiat currencies (dollar, euro, real, and others). Two examples are Tether (USDT) and USD Coin (USDC). Each unit is equivalent to one dollar. This asset class therefore seeks stability, and is not volatile like Bitcoin, Ethereum, and other crypto-assets.
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