Decentralized Finance (DeFi) reached over $150 billion in Total Locked Value (TVL) last year. Despite this extraordinary increase in TVL (from less than 1 billion at the beginning of 2020), the number of users interacting with DeFi is still negligible compared to the number of people investing in the rest of the crypto market, and these numbers are a drop in the bucket compared to those published by funding traditional.
DeFi’s TVL is just a fraction of the $2 trillion valuation of the entire crypto market. Moreover, the entire cryptocurrency market is valued at a number smaller than one publicly traded company on the stock market, Apple. Putting these numbers side by side, one can confirm that DeFi’s growth potential is staggering.
However, peer-to-peer financial services delivered through blockchain technology may have a bullish future in the future, but it will need an extra push to increase its adoption outside of the tech-savvy crowd.
This is where the FNDZ dApp opens the doors to DeFi for mass adoption by providing an easy-to-use platform for learning how to participate in token swaps on Decentralized Exchanges (DEXs) by following expert traders.
Shifting the growing interest in cryptocurrency markets towards DeFi
Social trading platforms have helped increase the number of retail traders over the past decade, and copy trading has become an incredibly popular way for new traders to learn about the markets. FNDZ offers a similar cryptocurrency trading service that facilitates user access to DeFi through its decentralized and transparent copy trading platform, so that users do not have to make the trip to DeFi themselves.
Valentino Cremona, Head of Operations and Technology at FNDZ says, “Moving users away from centralized services and towards decentralized trading is a major step forward for the mass adoption of DeFi. FNDZ ensures that the unreliable benefits of blockchain technology can be harnessed by beginners with a user experience that rivals most centralized exchanges (CEX).
Easy-to-use DeFi differentiates from centralized platforms
Although FNDZ was developed to match the ease of use of CEX, decentralization and transparency set FNDZ apart from centralized trading platforms in many ways.
Centralized platforms offer their services off-chain and can charge hidden fees, and these fees can wipe out any profits made through trading. In addition to cutting profits, these platforms expose investors to unnecessary risk through the use of Contracts for Difference (CFDs).
In short, investors do not keep guard over the assets they purchase through their trading platform when signing CFDs. Thus, the platform’s bankruptcy, mismanagement, or security flaws leading to a hack could mean that investors could see their holdings disappear overnight.
Robin Ubaghs, Director of Marketing and Growth at FNDZ says, The FNDZ solves these problems by adopting decentralization. Users retain all of their assets when using FNDZ, and the platform allows users to interact with copy trading services through an easy-to-use dApp powered by distributing audited smart contracts, rather than just a single contract that can attract exploits, for added security.”
Benefits for traders of all levels
The fees for copy trading services are transparent and posted in advance by expert traders and can be followed by every user for guidance in the crypto market, trades are made through DEXs where transactions can be tracked through on-chain data. Here, it is important to note that DEXs act as automated systems that guarantee 100% certainty that no broker can interfere with token swaps, so trades are always executed fairly and according to the code.
Another benefit of taking advantage of an open source platform like FNDZ is the increased reach and rewards for traders who want to monetize their followers. For example, FNDZ allows traders to get a commission for each user who wants to copy their trades. The trader can then participate in the FNDZ to earn fee discounts and bonuses from each trader’s earnings. The best part is that anyone can create a trading vault and the most successful vaults will be categorized and indexed by an algorithm to ensure transparency and recognition.
Complete decentralization from the bottom up
FNDZ ticks all the boxes for what makes the DeFi platform such a powerful tool, and strives to make this powerful tool accessible to everyone regardless of their prior knowledge of DeFi.
In another nod towards DeFi standards, FNDZ will operate as a decentralized autonomous organization (DAO), meaning there will be no traditional corporate hierarchy running the platform. Instead, in place of the CEO, anyone holding FNDZ tokens will be given a vote on how the platform operates in the future, making FNDZ a member-run platform for its members.
DeFi is growing, and the goal of the DeFi community is to get as many people on board as possible. Since DeFi relies on the power of people to make the system work, the more people who participate in DeFi, the better DeFi works for all participants. In order to achieve this goal, FNDZ’s DeFi-centric copy trading platform could be the catalyst that finally brings DeFi to the masses.
Image by Sergei Tokmakov Terms.Law from Pixabay