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Decentralized finance isn’t only changing our financial and monetary systems but also changing the relationship between lender and borrower

Defi is restructuring our traditional financial services and markets building a more efficient, trustworthy and transparent ecosystem by making every transaction peer to peer while giving both parties the privacy they need.

Other than improving our monetary systems, an important advantage of defi is filling the trust gap between lenders and borrowers by eliminating third parties that were profiting off the mistrust, and actually some innovating platforms are working on providing zero interest money markets to their users, like Maze Protocol where they allow their debtors using their credit generated from their collateral, they are able to issue the zero-coupon bonds to borrow many kinds of assets from the protocol without paying interest in future.

Some platforms like LaneAxis also work on bridging the freight industry and Web 3.0, by giving shippers and carriers full control over their business relationship where shippers upload their individual contracts which carriers must accept, and carriers upload the necessary documents that shippers have access to once relationship is established.

There are way more examples on innovating decentralized platforms that are helping individuals in all fields improve their businesses.

What do you think?

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2 Comments

  1. Over-collateralization is still a serious problem for DeFi but there are some platforms trying to overcome it. For example, Oasis announced Cipher ParaTime testnet a while ago to better tokenization of sensitive financial data. They believe that this type of tokenization can lead a classification of borrower and under-collaterelizaed loans can be possible. I don’t remember the name but there should be some projects that created only to provide under-collateralized loans. DeFi is handling the serious problems one by one.

  2. I’m thankful for DeFi and happy about the restructuring it’s bringing to the TradFi. Just like maze protocol, Baanx is another platforms that offers interest free lending when you stake your Bxx tokens (not sure there’s a bank that’d give interest free loans), also gives you 5% in network fees monthly for being a token holder.

What is the difference between the SafeMoon wallet and the SafeMoon exchange?

Am I just a noob or am I a noob who got hacked?