DeFi is an open and global financial system built for the internet age – an alternative to a system that’s opaque, tightly controlled, and held together by decades-old infrastructure and processes. It gives you control and visibility over your money. It gives you exposure to global markets and alternatives to your local currency or banking options. DeFi products open up financial services to anyone with an internet connection and they’re largely owned and maintained by their users. So far tens of billions of dollars worth of crypto have flowed through DeFi applications and it’s growing every day.
What is a DeFi?
DeFi is a collective term for financial products and services that are accessible to anyone who can use a specific Blockchain – anyone with an internet connection. With DeFi, the markets are always open and there are no centralized authorities who can block payments or deny you access to anything. Services that were previously slow and at risk of human error are automatic and safer now that they’re handled by code that anyone can inspect and scrutinize.
There’s a booming crypto-economy out there, where you can lend, borrow, long/short, earn interest, and more. Crypto-savvy Argentinians have used DeFi to escape crippling inflation. Companies have started streaming their employees their wages in real-time. Some folks have even taken out and paid off loans worth millions of dollars without the need for any personal identification.
It’s all about looking to remove the control from local authorities and bring back the control to your own fund.
What is a DeFi trying to solve?
One of the best ways to see the potential of DeFi is to understand the problems that exist today.
- Some people aren’t granted access to set up a bank account or use financial services.
- Lack of access to financial services can prevent people from being employable.
- Financial services can block you from getting paid.
- A hidden charge of financial services is your personal data.
- Governments and centralized institutions can close down markets at will.
- Trading hours are often limited to business hours of a specific time zone.
- Money transfers can take days due to internal human processes.
- There’s a premium to financial services because intermediary institutions need their cut.
With all these problems mentioned about the current financial circumstances, DeFi is trying to solve them by removing the control and limitations placed ontop on an individual by local authorities, governments, and banks. Now because DeFi is decentralized it doesn’t give anyone specific person power, as the power is in the hands of all the users, using DeFi.
How is DeFi Helping SafeMoon?
SafeMoon was built and launched on the Binance Smart Chain (BSC) as a DeFi Token. SafeMoon is considered a DeFi Token because there isn’t one person holding above 50% (Majority Share) meaning that the Token isn’t located in one place making it ultimately decentralized.
The SafeMoon Journey with the likes of The Gambia and country adaptation only gives SafeMoon more of a viable option as a cryptocurrency because it is DeFi. It removes the risk for any restrictions or control by any country or individual. This makes it a secure place because your money can’t be locked away at a moment’s notice of a regulation change that we have seen recently with UK banks and centralized exchanges. It is all about security that you can always access your funds.
So with this, it was created just to give everyone a bit of understanding of what DeFi is and how it is implanted as a part of SafeMoon. DeFi in its simple form is just removing control from regulations through the means of Decentralization, giving the user control.