Decentralized finance


 

Decentralized finance is a digital financial ecosystem that works on a blockchain using smart contracts. Unlike traditional banking establishments, DeFi blockchain-based solutions are completely automated.

They do not require any human intervention; and due to the fact that smart contracts allow real-time performance, their pre-programmed conditions are automatically satisfied. 



Si tratta di un ecosistema finanziario digitale che funziona su una blockchain che usa gli smart contracts. A differenza degli istituti bancari tradizionali, le soluzioni DeFi basate su blockchain sono completamente automatizzate.

They do not require any human intervention; and due to the fact that smart contracts allow real-time performance, their pre-programmed conditions are automatically satisfied.


Decentralized finance

What is Decentralized finance

As explained by defiprime.com Decentralized Finance (DeFi) is the movement that leverages decentralized networks to transform old financial products into trustless and transparent protocols that run without intermediaries.

It is an innovative concept that can offer a variety of financial services that were limited to centralized institutions, such as banks, before the creation of the Blockchain.

It is safe to say that everything that is born in the traditional banking system can be mapped and rewritten using the unique features of decentralization and exploiting the Blockchain technology. We are at the start of a new infrastructure that will allow us to move forward into a prosperous future.

The use of the blockchain for Decentralized finance applications makes this technology available to anyone who has Internet access.

WHAT CAN YOU DO WITH DEFI?

DeFi applications, also known as dApps, can make new contributions to the global financial industry.

They are extremely versatile and can enable several features, such as:

1


Digital asset management tools

You will have full control over your funds and your assets

 

2


Decentralized exchanges (DEX)

A decentralized cryptocurrency exchange that operates without the need for a central authority

 

3


Derivatives

In traditional finance, a derivative is a contract whose value is based on the performance of an underlying instrument. This underlying instrument can be an asset, an index or an interest rate and is often simply referred to as “underlying”

 

4


Insurance

 

5


Margin Trading

Crypto margin trading refers to the process of borrowing capital from a broker to negotiate a financial activity, that makes up the leverage.

In DeFi, the broker is usually one of the independent money markets.

 

6


Lending & Borrowing

Decentralized finance platforms lend funds to companies or individuals without the need for intermediaries. On the other hand, DeFi lending protocols allow anyone to earn interest on stable currencies and cryptocurrencies.

 

7


Staking

PoS networks use validators that create, propose or vote for blocks added to the blockchain. From the client’s standpoint, Staking is similar to an interest savings account in a traditional bank. In DeFi, infrastructure providers such as staking pools and Staking-as- a-Service providers act as a bank, managing nodes for decentralized PoS protocols on behalf of the investors.

 

8


Tokenization of real assets

Tokenization makes investments more affordable, faster, safer and available at all times of day. This gives access to real assets and cryptocurrencies to people who might not have previously been able to invest due to geographical or financial restrictions, and creates an alternative to traditional investment methods that are often outdated.

WHAT CHALLENGES IS DEFI FACING?

Poor performance

Blockchain are inherently slower than their centralized counterparts, and this also affects the applications that are built on them. DeFi application developers must take these limits into consideration and tweak their products accordingly.

High risk of user errors

DeFi applications transfer responsibility from the intermediary to the user. Many might see this as a negative aspect. Developing products that minimize the risk of user errors is a tough challenge, especially when those products are implemented on immutable blockchains.

Substandard user experience

The use of DeFi applications currently requires additional efforts on the user's side. In order for DeFi apps to become a key element in the global financial system, they must provide a tangible benefit that encourages users to leave the traditional system.

Crowded ecosystem

Finding the app that best suits a specific use case can be a challenging task, and users must be able to make the right choices. The challenge here is not only to develop the applications, but also to assess how they fit in the broader DeFi ecosystem.

HOW WE WORK

Introduction

Submit the project you’d like to work on

Assessment and in-depth analysis

Following an initial wide-range assessment, we’ll take a closer look at your project’s potentials together and share advice on any possible improvements

Assessment and in-depth analysis

Following an initial wide-range assessment, we’ll take a closer look at your project’s potentials together and share advice on any possible improvements

Structure

New Global International will help you structure your project and:

a. will support you in identifying the most suitable jurisdiction, corporate structure and type of security;

b. will take care of drafting the legal paperwork, disclaimers, KYC, AML, etc.

c. will be able to assist you in preparing an investor pitch as well as a more specific pitch for Venture Capitalists with an interest in this field;

d. will evaluate potential Exit Strategies with you.

Capital raising

New Global International, thanks to its network, will provide assistance in looking for investors willing to fund your project

Capital raising

New Global International, thanks to its network, will provide assistance in looking for investors willing to fund your project

Book a telephone appointment

Let's understand together which project you want to work on and let's see together the feasibility and potential of the project

Would you like to make an inquiry or request a consultation?

Fill in the form and we will get in touch with you

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Contact us

Contact us

Would you like to make an inquiry or request a consultation?

Fill in the form and we will get in touch with you

.