Aconomy, the real-world assets backed DEX, enables anyone to tokenize their real-world assets and help them unlock the latent liquidity of their assets.
While the investor community has been latching onto the NFT bandwagon, a silent revolution has been rising in its wake over the past few years. DeFi (Decentralized Finance) has been becoming a new-age phenomenon and opening a wide range of possibilities in the financial domain. However, most individuals aren’t familiar with the concept of DeFi, its benefits, use cases, and more.
No worries! Whether you’re a complete Web3 beginner or a Web3 geek, take a seat and join us as we delve into the exciting world of DeFi and its emerging financial market.
DeFi: The Next Big Thing in Finance
DeFi refers to decentralized finance that cuts out the banks or institutional middlemen and allows users to make financial transactions directly with others. With DeFi Applications, users can lend, borrow, earn interest, trade assets, buy insurance, and more without any centralized entity. Moreover, DeFi’s permissionless and inclusive nature gives users more control over their money through personal wallets and trading services that cater to individuals. Besides that, it offers some unique perks that somewhat lack in the traditional financial market:-
- DeFi eliminates the lengthy credit check process for borrowers and directly connects them with lenders.
- Maximize higher returns as compared to traditional market returns by providing funds to liquidity pools.
- Increase transaction transparency with account activity that can be easily checked and verified by other users on the blockchain.
- DeFi allows the trading of synthetic cryptocurrencies or market shares on various P2P platforms.
Apart from it, DeFi is currently exploring the possibility of incorporating “Real-World Assets” to expand its market significantly. This is because integrating real-world assets into DeFi has the potential to introduce trillions of dollars in new capital and liquidity into the market. Not only that, but it will also help the asset owners in unlocking the latent liquidity of their assets, allowing businesses to access a new lending market, and more. In short, real-world assets are DeFi’s ultimate gateway to gaining stability. If you still have doubts about it, then here are some reasons “why bringing real-world assets into DeFi can be beneficial for everyone”.
- RWAs in DeFi provide massive returns uncorrelated to the greater cryptocurrency market. This means that the performance of these assets is not necessarily tied to the price movements of cryptocurrencies.
- Asset owners can use real-world assets as collateral to access funding through the DeFi marketplace without selling their assets.
- Retail investors can independently explore a rapidly-expanding financial sector by investing in asset classes from established commodities to niche products.
- DeFi investors will benefit from both incomes generated by the collateral and interest payments made by borrowers.
Therefore, the integration of real-world assets into DeFi adds a renewed level of stability, equality, and accessibility that encourages everyone to adopt this new and game-changing world of finance. Additionally, unleashing the possibility of lending real-world assets will also allow DeFi to occupy a competitive position against the banking system and customary lenders. So now, when are you planning to switch from traditional finance to its technologically advanced version i.e., DeFi?
