Hello Everyone

Cryptocurrencies have vast use cases including payment services, investment, etc but the latest invention in this segment is known DeFi and Yield Farming. DeFi is the short form for Decentralized Finance. When we usually hear the word "finance" then we pay more attention to it has something to do with our money and various use cases related to this.

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This year 2020 has been great so far for the crypto world and DeFi has been one of the hottest topics these days in the crypto space. As far as I know then this word has come in the existence this year only. Undoubtedly this is getting more attention from the crypto traders, investors, and YouTubers of course. I remember in 2017 when the crypto bull was going on that youtube was flooded with crypto videos and everyone was trying to be a great analyst in cryptocurrencies but the second quarter of 2018 changed that scenario. These days once again I can see lots of videos on youtube where people are sharing various videos about DeFi and various Defi projects.

What’s DeFi in your mind and have you ever bought any DeFi tokens?

DeFi is a new age of finance that is well equipped with high-end technology and it has huge potential to grow. These days when banks have reduced the interest on deposits drastically and because of the covid-19 pandemic stock market is crashed. Until March month this year Banks in India used to offer 7-8% returns depending upon deposit tenure but now these are not even 5% so there is a huge dip. This reduction has affected the investors who were relying on banks for their investment because this is way down. DeFi is the new crypto segment that has got the attention of such investors who were not happy with their banks and that's why DeFi has got huge investment and attention.

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I have gone through various DeFi projects like BNSD by Bitbns, DAI, and Sun token launched by Justin Sun. Although there are numerous projects but its important to pick the one is more reliable and built on high-end technology and a well-known name to trust. I have been part of Tron token since 2018 and have seen it growing to I chose Sun token to be part of my portfolio. The reason is simple but solid because I have been holding Tron tokens for more than 2 years, and now Steemit is owned by Justin so there is an additional layer of trust. I am sure that I have chosen the best and it will give me a decent profit in the long term.

What makes you excited about DeFi?

I have been a crypo investor since 2017 and on these 3 years of the time period, I have added many coins in my portfolio. I know very well that its always beneficial to join the trend DeFi is the new trend. I have been investing in crypto even though the SIP (systematic Investment Plan) through Bitbns exchange.

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I always want to have my investment in different instruments and SIP was the second option for me. DeFi is the next one that I am happy to make the third one. The kind of growth and returns is has shown in the short terms are amazing. As an investor, I always prefer the instrument that gives exciting returns and with DeFi I can say that its happening and I think that in the next few years I can get some decent returns on this and for this, I am so excited. The best of all I can get the profit without selling my DeFi coins.

When I put my savings in the bank then I don't know who is borrowing, how much they are borrowing and the fees charged on this but with DeFi its all available in open source. Since all these financial products are open source so there is transparency and we can get all such information easily and this is what I like about it very much

Which project do you think is the best DeFi application？Why?

DeFi is popular because of massive returns in the decentralized form that means I can get passive income and will have full control of my invested tokens. In centralized finance banks or some other entity controls it but with DeFi this power comes to the investor.

DeFi is certainly a new word but the concept of getting passive income through the investment in a decentralized manner is not new. Steemit has been offering the same since its beginning in the year 2017 and it comes by default to all the users on steemit. Simply you need to stake STEEM tokens and you start earning immediately through upvote, curation, and delegation, etc. So technically this concept of passive income is 4 years old and here also we can earn without even selling our tokens.

We are hearing this word DeFi a lot since last 4-5 months but even in Feb Dao Maker twitter account shared very nice information that how STEEM is pioneer in DeFi and stem has been doing it for last 4 years but not world have realised the power of this concept. Its possible that many if you might not know this but this something that we should be proud of that we are working a futuristic platform know as STEEM/Steemit

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In traditional investment, we get income only when we sell our holdings but here on DeFi and stem our holding will remain as it is and passive income will start immediately that we can either hold or sell as per our choice

Are you feeling positive or negative about the future of DeFi?

I am quite positive with DeFi because I think that the future of DeFi is bright. DeFi has given a better investment option to investors and even traditional investors will be part of it. Its just started and has gained huge attention and investment so in the coming years we are going to witness a huge growth in this segment.

I believe in crypto and I can see the positiveness about crypto with the people. Looking at the growth of the crypto market and overall development and innovations, I am hoping to see a boom within a year.

In India, after the crypt banking ban removal, more people are joining it and even now some of my friends want to join the crypto space with some of the money. They all go through the news and they got to know about DeFi and Yield farming but they don't know much about it. I had a discussion with them and explained to them about it and they seem to be quite positive so I hope they will join it soon. This is very good for me because they are the same people who were completely against crypto until last year because of the banking ban and I like this shift of mindset. I also see this as an opportunity to bring them on STEEM once they join the crypto space.

What’s the mechanism of DeFi or any DeFi project?

DeFi is based on liquid supply and the majority of projects are built on Ethereum's smart contract. Although Ethereum is a leading blockchain platform that offers smart contracts because of DeFi it has got so many projects on it that helped Ethereum price to cross the 400$ mark even in a couple of weeks. This has also contributed as a spike to the Gas Fee for transactions on the Ethereum platform. During UniSwap Aridrop this gas fee was almost $30 which is very high and users are left with no other option than using it. Even after paying this high charge transitions are taking longer than usual due to high traffic. One month back Ethereum price was less than $200 and it touched almost $450 and even now its more than $350 which is an impact of increased transitions.

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Ethereum 2.0 could be a solution to speed up the transaction processing but I think it will still charge quite high as compared to the Tron platform. The Tron ecosystem has everything that can give a tough competition to Ethereum in terms of fastest transaction processing and cost-effectiveness. I have chosen Tron because of both reasons and I think that its good for people who are looking for DeFi as here Tron ecosystem is robust and scalable that can handle a high number of transactions and settle faster with charges not more than 1$.

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Its good that now we have more options to choose from for our investment in DeFi and indeed it is an innovative instrument. As I mentioned that STEEM is a pioneer in this then if we look at the overall picture then I see Tron and Steem Ecosystem is leading the way because both are owned by Justin and here people get more varieties and option under the one umbrella. Tron Ecosystem is so vast that has coins like JUST, SUN and TX itself along with STEEM as an added advantance which not a new name in blockchain based platform.

Although I have invested in SUN token already but my stake on STEEM is also quite high and I will work to increase it even more because I get better returns through this. So overall I can say that all my DeFi investment is only with Tron and STEEM for a long term and I dont see any need as of now to look any other name. Here I never need to worry about rising transaction fees however on steem its all free so I can enjoy instant transaction for free of cost

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This is my submission for Steem Crypto Challenge Month #2 : Diving into DeFi by @steemitblog @steemcurator01, @steemcurator02 . Steemit team is working hard and doing great work to bring such great challenges.

This post is published with 100% Power up

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Thank you so much.

Have a great weekend.

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