Oct 27, 2021
WHAT IS DEFI 2.0 AND HOW IS IT CONNECTED TO KEPLERSWAP?
Cryptocurrencies originated as a response to current financial institutions' inequality and inefficiency after the global financial crisis of 2008. Since its inception, the usage of blockchain technology in the financial industry has reinforced Bitcoin's decentralization, culminating in a new world of decentralized financial services, or DeFi.
Despite its many benefits, there are a few problems preventing DeFi from becoming more generally adopted. One of the many new developments brought about by blockchain technology is decentralized finance.
For financial banking and lending, there are increasingly more decentralized and peer-to-peer networks, as well as complex financial products.
Decentralized finance is a new way to perform financial transactions through mobile apps. It is accomplished using the blockchain, which eliminates the need for traditional financial institutions and middlemen. Consider it a means to cut out the middlemen like brokerages, exchanges, banks, and other financial institutions.
Benefits of Decentralized Finance
One of the main benefits of DeFi is the ability to fund an account indefinitely. Countries without a typical banking infrastructure can benefit from DeFi apps. In African countries, DeFi Apps enable access to previously unavailable financial services.
Banks continue to rely on IDs and credit scores to verify customers. Users of DeFi applications don't need a bank account or a credit score to access financial services.
Banks continue to rely on IDs and credit scores to verify customers. Users of DeFi applications don't need a bank account or a credit score to access financial services.
As a result, everyone can obtain financial services. DeFi solutions may be a far more efficient and effective way for governments to provide universal basic income in light of the current epidemic. If DeFi is implemented, millions of people might get government money in one instant.
Flaws of Decentralized Finance and Need for upgrade
Despite its numerous advantages, there are a few factors that prevent DeFi from becoming more widely used. Decentralized finance is one of the many new innovations brought about by blockchain technology.
Although some investors are indifferent, all of the issues stated below are limiting widespread adoption of the decentralized financial system. In the DeFi ecosystem, smart contracts, a lack of credit insurance, user error, and asset liquidity are all important concerns.
This flaws include;
- Liquidity Problems
- Loan problems
- Regulatory Problems
- Smart Contract Vulnerability
Visit this link to learn more about these flaws
What is DeFi 2.0?
Despite the fact that the DeFi industry is quickly growing, consumers continue to confront challenges to decentralized finance adoption. Modern platforms try to solve this problem by making DeFi more accessible to a wider audience.
The majority of DeFi projects are now related to token issuance, with the purpose of increasing token minting. In terms of cryptocurrency, distribution, or community management, these initiatives haven't brought any new ideas to the table.
Participants began by constructing mining infrastructure, but it rapidly became unsustainable. Users have little influence over how the community is managed. Because there is no control, most miners concentrate on high-reward coins first. It has had a negative impact on the platform's DeFi growth and liquidity.
DeFi 2.0 is a refurbished version of DeFi that was created to address current flaws and affect the qualities of the current DeFi, allowing clients to take advantage of significantly more promising chances. DeFi 2.0 will primarily address network shortcomings such as scalability, liquidity protocol, and administration, all of which are classed as capital efficiency.
The Link Between DeFi 2.0 and KeplerSwap
The Kepler Technical Team is working to solve this problem by developing a long-term cross-chain decentralized financial system called DeFi 2.0. The goal of DeFi 2.0 is to link all community members who can supply liquidity.
It does this by using liquidity incentives as an entry point and then tying the rewards to future user transactions. Its goal is to provide a standardized user interface as well as a long-term, decentralized financial structure. DeFi 2.0 is a ‘state of the art’ financial governance innovation that has broken the ice.
Only DeFi services are supported by KeplerSwap’s smart and open cross-chain platform. Technologists and influencers may tap into this growing greenfield project for endless creative DeFi project ideas by implementing this technical breakthrough. DeFi 2.0 will be a significant upgrade over DeFi 1.0. It will move the focus from merely harvesting mining profits to establishing a sustainable platform for long-term liquidity contribution by promoting user involvement. This is what DeFi 2.0 will look like in the future.
About KeplerSwap
KeplerSwap is a decentralized trading platform for professionals based on blockchain technology. It provides players with a full solution to identity security, asset security, and autonomous trading on a mix of blockchains under the terms of a Decentralized Market Agreement.
To learn more about KeplerSwap visit
