Introducing YFPO - The revolutionary DeFi for decentralized financial activities
DeFi, decentralized finance, is a revolutionary attempt to change the way we engage in financial activities. With DeFi many traditional financial use cases, such as trading, lending, investment, wealth management, payment, and insurance can be completed on the blockchain.
DeFi is based on Decentralized Applications (dApps) or protocols that constitute a peer-to-peer financial network. Most applications that call themselves “DeFi” are built on top of Ethereum. Etherium is the second biggest cryptocurrency platform after Bitcoin, but a much easier one with regards to building other types of decentralized applications beyond simple transactions.
In this sense, with DeFi you can complete all of the traditional financial services without any centralized party. Instead, these are provided by other users that act as financial counterparts with no middlemen involved.
Jon Jordan, communications director of DappRadar, in an interview he had at Cointelegraph focused on their ability to learn, adapt and evolve from each other, which is one of the reasons decentralized finance is moving so quickly.
“Because DeFi runs on an open permissionless blockchain, interoperability of dapps and tokens is a massive advantage. One dapp can come up with a new feature — such as flash loans — and then other dapps can integrate that into their product without asking permission. This interoperability has been the underlying reason for the current Yield Farming explosion, for example.”
What are the advantages of DeFi?
DeFi tokens have gotten increased popularity over the past years, as they have continuously outperformed Bitcoin in the price charts. In fact, Compound’s COMP token rose 233% in its first week of trading, and Aave’s LEND token has surged 1,000% in the last three months.
But what drives such buzz around this topic? For the crypto world, DeFi is a revolutionary attempt to bring transparency, security, and decentralization is a traditional financial system that has outperformed its usage. In this sense, the advantages that DeFi tokens bring to the table are many.
Since DeFi is built on top of a blockchain, it inherits the benefits of the decentralized ecosystem as well. But let’s dive a little bit more into the benefits of a decentralized financial ecosystem:
With a decentralized system, the user regains full control over their personal info, private keys, and money. Without any third-party, blockchain offers a transparent environment where users can have access to all of their financial information from the beginning to the end.
of 2017, 1.7 billion adults worldwide remain unbanked, according to Global Findex. With DeFi anyone can access banking resources without needing a bank account. Lending and borrowing can happen easily only with an internet connection since DeFi tokens work on the blockchain technology.
provides a transparent ecosystem that is difficult to hack. Banks can be hacked, but transactions can be canceled and reversed, so eventually, the damage in the leakage of personal information is not that extreme. In DeFi, all information is already public, given that all transactions are recorded on the blockchain, which is generally harmless given that said information is pseudonymous.
Certainly, there are also difficulties with regard to freezing or canceling a transaction. But since the field is growing immensely, technologies will continue to develop into more efficient systems.
By enabling anyone to have access to banking resources, DeFi tokens have made the transactions fast and low-cost. However, this procedure requires some level of technical understanding.
On the other hand, opening up a bank account actually requires no equipment or prior knowledge; but even then, many cannot do so because of the paperwork or inability to qualify for a product such as a loan. So ultimately, both traditional and dicentra mixed systems have flaws. But DeFi tokens provide a new opportunity for crypto investors.
YFPO Token - Yearn Finance Power
YEARN FINANCE POWER is one of the above mentioned decentralized tokens that is built under the ERC-20 (Ethereum) protocol. When purchased it allows users to earn a yield by staking it, borrow assets, and vote in the decentralized YFPO ecosystem on governance issues within the community.
The YFPO staking platform enables investors to earn a yield on the YFPO token by depositing the purchased token on the YFPO website in whatever amount one wishes to stake (deposit.) An Annual Percentage Rate (APR) of 80% is earned on the token’s value, and staked tokens can be unlocked at any time for a fee.
Another service in the YFPO ecosystem is borrowing. Borrowers can borrow assets in an overcollateralized (perpetual) way, selecting USDT (Tether), Ethereum (ETH), or DAI, and earn a reward for using the protocol.
Benefits investing in DeFi like YFPO
We have already mentioned the various benefits of investing in DeFi tokens. But YFPO can add some important elements to that equation:
1. Low-cost token supply with only 10.000 YFPO
2. Listing on big exchanges, with more details following soon
3. Stacking platform with high ARP
4. Providing real-world asset value, unlike any other DeFi tokens in the industry
5. Great potential for its price
The YFPO token presale is starting on the 22nd of October. Save the date or join their telegram group to always stay informed with updates and upcoming events.
The decentralized financial system is dominating the crypto world with increasing popularity. DeFi tokens built on the Ethereum protocol have the ability to provide all the benefits of the blockchain ecosystem combined with the financial developments of recent technologies.
YFPO brings new saving and earning opportunities. With the ease of use now anyone can get started leveraging their capital in a more decentralized way.
With this being said, can DeFi overtake the traditional finance model in the future? This remains to be seen. The only certain thing is that both will coexist and serve different needs and client bases.