Decentralized Financing (DFI) Total Value Locked (TVL) reached $ 150 billion last year. Despite this exceptional increase in TVL (below one billion at the beginning of 2020), the number of users communicating with DFI is still lower than how many people invest in the rest of the crypto market, and these numbers are lower than the bucket posted by traditional thematic finance.
Defy’s TVL is just a fraction of the দুই 2 trillion valuation of the entire crypto market. Moreover, the value of the entire crypto market is lower than that of Apple, the only publicly traded company in the stock market. Putting these figures aside, one can claim that the potential for DFI growth is surprising.
That being said, peer-to-peer financial services delivered through blockchain technology may have a bright future ahead of them, but they will need additional pressure to increase their acceptance outside of technology-conscious masses.
It is here that copy-trading Decentralized Applications (dApp) is opening the door to widespread adoption of DeFi by providing an easy-to-use platform for learning how to participate in token swaps in decentralized exchanges (DEXs) following FNDZ expert traders.
Changing the growing interest in the crypto market towards DFI
Social trading platforms have helped increase the number of retailers over the past decade, and copy-trading has become an incredibly popular way for new traders to learn about the market. FNDZ is offering a similar service for crypto trading that makes it easier for users to access DeFi through a defaulted and transparent copy-trading platform, so users don’t have to travel to DeFi themselves.
Valentino Cremona, Operations and Tech Lead at FNDZ, says “Moving users away from centralized services to decentralized trading is a big step towards widespread adoption of DFI. FNDZ ensures that the incredible benefits of blockchain technology can be exploited by newcomers through the user experience that rivals most centralized exchanges (CEX).
Isolating user-friendly DFIs from centralized platforms
Although FNDZ has evolved to combine ease of use with a CEX, decentralization and transparency distinguish FNDZ from a variety of centralized trading platforms.
Centralized platforms can offer their services off-chain and impose hidden fees, and these fees can consume any profit through trading. In addition to surpassing profits, these platforms expose investors to unnecessary risks through the use of CFDs.
In short, investors do not secure the assets they have purchased through their trading platform when signing the CFD. As a result, the bankruptcy of the platform, mismanagement, or security flaws that lead to hacking means that investors can make their holdings disappear overnight.
Robin Ubags, FNDZ’s Marketing and Growth Lead, says: “FNZ solves this problem through decentralization. Users maintain all of their assets while using FNDZ, and the platform allows users to interact with a copy-trading service managed by a distribution of smart contracts monitored through an easily accessible dApp, rather than just a contract that may attract exploitation, for added security. ”
Convenience for traders of all levels
The fee for the copy-trading service is transparent and expert traders can post in advance for each user to follow the instructions in the crypto market and the transaction is done through DEX where the transaction can be tracked through on-chain data. Here, it is important to note that DEXs act as automated systems that ensure with 100% certainty that no intermediary can interfere with a token swap, so trades are always performed fairly and in accordance with the code.
Another advantage of using an open source platform like FNDZ is the access and rewards of traders who want to earn the following money. For example, FNZ allows merchants to receive a commission for each user who wants to copy their business. A trader can share FNDZ to earn fee discounts and rewards from the profits of each of his traders. The best part is that the most successful vaults will be positioned and indexed by an algorithm to ensure that anyone can create a trading vault and that both transparency and recognition are met.
Complete decentralization from bottom to top
To make a DFI platform such a powerful tool, FNZZ ticks all the boxes and tries to make this powerful tool accessible to everyone, regardless of their prior knowledge of DFI.
With further adherence to the DFI standard, FNZ will act as a decentralized autonomous body (DAO), meaning that the platform will not have a traditional theoretical corporate hierarchy. Rather, instead of a CEO, anyone holding a $ FNDZ token would be given the power to vote on how the platform works in the future, FNDZ would create a platform run by its members.
DFI is growing, and the goal of the DFI community is to get as many people on board as possible. Since the DFI system depends on the ability of people to work, the more people who participate in DFI, the better DFI works for participants. Ready for this goal, FNDZ’s DFI-centric copy-trading platform could be the catalyst that ultimately brings DFI to the public.
Image by Sergei Tokmakov Terms.Law from Pixabay