DeFi Dash — An overview of what DeFi is and trending protocols on Huobi.com!
🔹What is DeFi?
DeFi is a system of open, permissionless and interlocking financial products primarily built on the Ethereum, Cosmos, Polkadot and Wanchain networks. It has the ability to revolutionize financial products through smart contracts and apps. One particular area of focus is borrowing and lending of financial products in a decentralized way.
🔹What are the main advantages of Defi?
It allows anyone with the internet to be able to lend, borrow, and bank without the need for a centralized in-between entity.
🔹Why is this important?
Right now, DeFi is one of the fastest-growing spaces in cryptocurrency along with the ability to use this technology to service a huge population that may not have access to the traditional finance system. The possibilities are endless for future developments within this ecosystem.
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🔹What DeFi protocols are available on Huobi?
There are several protocols within DeFi available on Huobi, but today in this series we will look at five in no particular order with a very small dive into the technology. If you want all the particulars of how they work make sure to visit the websites listed below.
ChainLink is a decentralized oracle network that provides real-world data to smart contracts on the blockchain. LINK is the cryptocurrency used as payment for services on the network.
The main issue with smart contracts is that they aren’t really smart in connecting to real-world data. Chainlink solves this problem by using two interactive parts one being on-chain and another off-chain.
You can read more about the technology and how they are solving this problem by visiting the Chainlink website here.
0x (ZRX) is a protocol that allows for a decentralized exchange of tokens and assets issued on the Ethereum blockchain. Developers can use 0x to create their own applications for exchanges with a wide range of functions.
The ZRX tokens are also used to implement decentralized management of the 0x protocol update mechanism, which allows for the replacement and improvement of the underlying smart contracts.
0x has many use cases but one that is very interesting is decentralized loans. 0x enables an ecosystem of lenders to self-organize and efficiently determine market prices for all outstanding loans.
Read more 0x use cases.
Cred is a global platform licensed lender and leverages a substantial balance sheet and proprietary technology to provide business and retail credit.
LBA is a global utility token on the Cred platform that gives customers exclusive access to premium financial services.
LBA is the token of Cred Inc. A lending ecosystem, Cred provides cryptocurrency-based lending services and aims to build a world-class lending ecosystem with its industry-leading credit management capabilities and partnership network.
For more information on LBA.
REN is an open protocol that enables the permissionless and private transfer of value between any blockchain. This development will allow you to access tokens from any blockchain using existing smart contracts without having issues with wrapping or unwrapping tokens.
The REN token has two functions. First to incentivize node operators to match orders and another to pay bonds to the register. This will allow traders and nodes to participate in the REN Dark Pool. More info here.
Last but definitely not least is Reserve’s RSR🅡!
The Reserve Protocol is a decentralized stable coin system that scales supply with demand and is built to maintain 100% or more on-chain collateral backing.
The Reserve Rights token (RSR) — The fluctuating protocol token that plays a role in stabilizing RSV and confers the cryptographic right to purchase excess Reserve tokens as the network grows.
Current investors: Peter Thiel, and Eric M. Jackson, with PayPal along with BlockTower a leading crypto-asset investment firm, which has raised over $140 million from lead investors Andreessen Horowitz and Union Square Ventures. More information at reserve.org.
More DeFi coins very soon on our next campaign called “Huobi DeFi Carnival.” Stay Tuned!
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Sources have been linked in the article and other sources include wiki, Huobi.com, and the project's website that has been linked in the article.
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