Despite tremendous growth in the DeFi market, customers still face challenges that limit widespread adoption.
Modern platforms strive to solve this issue by making DeFi accessible to anyone. Elrond developers are readying the DeFi 2.0 module, fixing existing platform issues. Let’s explore this more in this essay.
Defining Crypto Industry
Initially, users could safely store and transfer cryptocurrencies. Centralized platforms and exchanges dominated decentralized coins. Centralized platforms and exchanges offered all services, antithetical to decentralized cryptocurrencies.
Decentralized Finance (DeFi) is a collection of blockchain-based businesses as an alternative to traditional financial services. Due to creating a new sector, crypto-holders now have access to new financial services managed by smart contracts: swapping, crypto lending, staking, liquidity mining, and launchpads.
Despite the industry’s tremendous expansion in the second half of 2020 and early 2021, it still has issues with its capitalization surpassing $40 billion. In addition, the accessibility of DeFi platforms makes it difficult for newbies to utilize decentralized products; therefore, the majority of users are crypto enthusiasts. The UX and security difficulties that even major platforms like Maker and Sushiswap have faced deserve their column.
Another significant difficulty is the Ethereum platform’s constraints, which underpin most DeFi applications. Due to the enormous number of users on the Ethereum network, considerable delays and transaction costs might surpass $100. For users with less than a few thousand dollars, DeFi devices are unprofitable.
The DeFi industry needs more productive platforms that make financial services more accessible to change this.
Elrond DeFi 2.0
To address the current issues of the decentralized ecosystem, Elrond is building a new next-generation DeFi 2.0 module.
In addition to liquidity pools, automated swaps, synthetic assets, and the launchpad will be accessible via the new module. During the hypergrowth marathon, the module will implement in stages. The first phase will begin on the 95th day (9th of April). The following phase’s specifics will release soon.
The Elrond platform will provide a high-bandwidth blockchain network, low-cost transactions, and an intuitive user interface. Instead of 15 transactions per second for Ethereum, the DeFi 2.0 module will run on Elrond’s blockchain.
Elrond intends to maximize the DeFi ecosystem’s potential and deliver advanced cryptocurrency tools:
This program creates wallets for users using only their phones, allowing everyone straightforward access to DeFi and other blockchain capabilities.
Smart accounts allow their owners to save data such as BTC addresses, emails, and social network accounts.
ESDTs — Elrond Standard Digital Tokens implemented natively into the Elrond protocol, allowing them to transfer at high speeds and low costs NFT; — also integrated directly into the Elrond protocol, with built-in royalties.
The above capabilities will implement on Elrond DeFi 2.0 module as interconnected platforms serving various purposes.
About Auto Swaps
Automated Market Makers (AMMs) provide standalone trading platforms for smart contracts. This allows for safe cryptocurrency trading without trusting centralized crypto exchanges with your funds.
AMM’s swap commission is also constant and based on the blockchain network, allowing you to trade vast amounts at lower rates than centralized exchanges where the commission varies based on order size.
The Elrond swap module allows anyone to supply liquidity in pools and yield.
This is another new phrase from the DeFi sector. Derivatives like futures and swaps are tokenizing representations of underlying assets such as equities and bonds. Ex: Pancake Swap on the BSC blockchain features MTSLA, AMZN, and MGOOGL synthetic stocks and USD (UST).
Synthetics will trade on Elrond as ESDT or NFT tokens.
Launchpad is a novel kind of IEO introduced by Binance. The recent success of Polkastarter shows a fundraising model that works well to crowdfund new ideas.
On the Elrond Network, the Elrond launchpad will profit from the project’s vast and dedicated userbase.
Non-fungible tokens (NFTs) are a new cryptocurrency trend. Essentially, NFTs are tokenized real and virtual assets that are not commodities. A virtual card, a piece of art, or intellectual property Unlike other tokenized assets, limited edition or one-off objects constitute the underlying NFT asset.
Elrond’s NFTs build into the protocol. Because Elrond’s Smart Accounts (any account) links to them, they can join them for genuine ownership.
The Elrond DeFi 2.0 module will be compatible with other DeFi products. The Elrond teams built them all. This can impact interoperability, security, and performance.
Everstake is a major staker in the Elrond ecosystem. Our validator will create many of the blocks containing important DeFi transactions. Learn more about Elrond and Everstake your eGold tokens.