How DeFi Tools Are Evolving As Adoption Takes Place

Here, we will show you how DeFi tools are evolving as adoption takes place.

In the earliest days of man, he first discovered fire, and then invented necessary tools such as the wheel, weapons, and ways to cook. These very primitive things we all take for granted all began as a shocking surprise to those that first came across them.

The earliest banks involved actually storing coins in safety deposit boxes, but eventually became paper ledgers. Paper eventually became digital as computers emerged, but these ledgers of transactions continue to evolve.

Banks are the cavemen of finance, barely able to cling onto survival as the times change. Climate change is coming via the crypto industry, and more specifically DeFi. As DeFi has moved to the forefront of finance, it is clear that the market demands another evolution, but banks are reluctant to give up the upper hand. 

The challenges of DeFi are too large currently to usher in the wide-sweeping change that’s needed, however, these DeFi tools have started to finally evolve, beginning with Covesting yield accounts.

Why Traditional Banks Are Going Extinct?

When the environment and climate began to change billions of years ago, the species that could no longer keep up with the changes didn’t survive. Any species capable of adapting would ultimately evolve into something even stronger as the ages go by.

The analogy can continue to be used in finance. The traditional banks of today, will in the future be the fossilized remains of ways of life that eventually become obsolete. Standing in line to speak to a teller has already been replaced by ATMs, and mobile deposits have made depositing paper checks possible. Blockchain, crypto, Bitcoin, and DeFi could eventually mean no contact, paper, or anything but a click or two is necessary to access any financial product or service.

It is already beginning with DeFi. At banks today, there is an archaic process involving an application for credit that can be approved or denied based on conditions you have no control or knowledge of. If the bank manager doesn’t like your last name, you could be unable to get a loan to start a business. But DeFi allows for permissionless lending and borrowing, so long as you have the crypto to use as collateral. 

READ ALSO: Sustainable Finance And Positive Global Transformation

Why The Future Of Finance Is DeFi?

DeFi adoption first began to blossom when the total value locked up in smart contracts on Ethereum started to trend into the millions. Soon, the number was billions and now DeFi is a force to be reckoned with. 

Most DeFi apps early on were running on Ethereum, putting ETH in more demand as a currency to use such apps or send ERC-20 tokens. Trading Ethereum was especially profitable as new all-time highs were set. 

The trend really began to explode when yield farming first began, and caused unprecedented APY rates in the earliest participants. As more people piled in, rates finally came down to realistic levels. However, even a realistic level in DeFi is often 10 to 20 times more profitable than the 0.04% rates offered on savings accounts.

Why DeFi Adoption Is Currently Limited?

Rates in DeFi often reach as high as 10% depending on market conditions like volume, volatility, and more. Compared to what we’ve outlined for savings accounts, that rate is shockingly high. 

The only problem is that accessing such rates often involves connecting to DeFi dapps through a blockchain wallet which involves Metamask or another Ethereum-based interface. The wallet must also contain ETH to sign transactions or move funds around.

Users would do this to connect to an automated market making platform, for example, like Uniswap, which provides users who lock tokens in a smart contract with a variable APY in crypto rewards. Providing liquidity to the platform offers it to be used as liquidity for trading pairs and any fees collected by the protocol are paid to users as rewards. This is why the APY is variable, as there is no telling how much liquidity or demand there is at any given time.

How To Easily Access The Evolution Of DeFi

Jumping through all those hoops might not sound worth it, even for a 10% APY during the best conditions. However, a much easier way is now here. Covesting yield accounts were launched this month on PrimexBT, enabling a simple way to tap into top DeFi protocols like Uniswap, Compound, Yearn.Finance, Curve, and others.

PrimeXBT and Covesting also say that in the future they will add more protocols, and even connect to certain CeFi platforms to provide users with the most possible options and access to the best rates in finance.

Covesting yield accounts are available right from within the PrimeXBT account dashboard using a familiar interface. Users can stake idle crypto assets for up to a 10% APY, all from the same main account that they use to margin trade, copy trade, and more. 

Staking COV Tokens Unlocks Extra DeFi Features

By staking COV utility tokens in the MyCOV section of PrimeXBT, users can also unlock an added utility that boosts APY rates by as much as 2x. Staking COV tokens doesn’t itself provide an APY, but bolsters the rates on ETH, USDT, and USDC. 

The COV utility token also enables Premium, Advanced, and Elite memberships, which give Covesting traders discounts on trading fees, increased profit shares and following limits, and much more.

COV tokens can be purchased directly from the award-winning PrimeXBT, using the exchange tool in the secure account wallet. Wallets are protected by bank grade security infrastructure, two-factor authentication, address whitelisting and more. 

Try Covesting Yield Accounts On PrimeXBT

The Covesting ecosystem is one of the many main highlights of PrimeXBT, which primarily offers long and short positions on crypto, gold, oil, indices, forex, and more, all from a single account. 

All users receive a personalized experience thanks to a dedicated account manager, and 24/7 customer service is always available. The advanced platform and its client-focused approach caters to skill levels of all kinds, and has something for all types of investors and traders.

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