It was the 1st of July 2020 when there were 44 million USD deposited assets in Uniswap liquidity pools, one of the most influential Defi exchanges in the market. At the moment of writing this, 23rd of October 2020, there is 2,95 BILLION dollars in assets. WTF?
Same time all the Defi (decentralized finance), there was 1.9 billion in all the defi space, and at this moment, there 12.49 billion. Growth numbers are colossal beyond comparison. Point being, on the 1st of June, Defi space was meaningless, but today, it cannot be passed unnoticed.
Are these numbers big enough for you to participate? I think you will, yes.
Defi space has grown exponentially this year, and it has become a significant player in the whole crypto market today. The downside of it can be that the gas prices have also grown to an all-time high up to 538 gwei on the 17th of September, now stabilized at around 63 gwei, which still is not cheap. At the beginning of June, it was about 30.
There is no end to this, and why should there be? It is very good for the cryptocurrency world and all crypto minded individuals. The benefits of Defi space exploding like this are numerous. There are exchanges, lending platforms, assets management, derivatives, and much more is coming. Imagination is the limit of the Defi space.
The profit margins of all the Defi platforms are huge at its best. For example, USDC stablecoin interest was over 63 % today, in the percent.finance. Where else you could even imagine anything like that. But like I said before, the gas prices are so high that, with a small investment, it is tough to get unusual high returns, even they are safe for you to invest. The sharpest edge with the highest profits moves to other pools relatively fast, in a matter of hours or days.
All the Defi space agreements are smart contracts, which means you cannot be conned or scammed. As you know, smart contracts only do what they are supposed to do. They cannot be modified or altered at all. The only person who can touch the money is the account holder, no one else. Everything else happens automatically, according to the contract. Smart contracts, of course, have to be audited, so you know there is nothing shady happening in that contract. You can check audits very quickly because they are shown and advertised by the platforms.
Many of the yield farming operations have promised skyrocketing high returns to those who invest, and…