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Crypto Investment Platforms Must Adopt This To Expand Services


coinpedia.org 17 January 2022 16:58, UTC
Reading time: ~3 m

DeFi apps, platforms, and protocols based on blockchain technology have managed to achieve synergies and collaborations that have rarely if ever existed in the centralized financial playing field.

That’s thanks in part to the amazing innovations taking place in this still young arena, with some of the greatest minds pushing forwards the boundaries of what is possible.

And also thanks to the amazing technological achievements and capabilities of the blockchain and the smart contracts deployed, which give enhanced functionalities and a level of sophistication to Defi products unparalleled in the traditional markets.

While decentralized finance is opening up unprecedented investment opportunities for its users including the ability to stake, farm, and put their idle tokens to work for passive yield, the returns investors can access through this sphere are unmatched in the conventional investing arenas.

Liquidity pools and staking are a fairly new aspect of the blockchain, which allow investors to become liquidity providers in return for generous rewards by way of APY.

On the other hand platforms, both on and off-chain can now offer their liquidity pools, vaults, and other features across a series of blockchains.

This not only ensures enhanced liquidity for your product due to the users you can target across networks but also enhances your user growth.

Expanding your offering

Some of the leading and most innovative examples of products offering projects that are compatible across multiple chains include, HyperDex, algo, and staking automated asset management platform.

Nexo.io, lending institution in the digital finance industry, Yearn.finance, fund optimization platform, Deribit, the world’s biggest Bitcoin and Ethereum Options Exchange and Flare Finance, products allowing users to act as their own yield generating bank and exchange.

Yearn.finance is a leading platform that functions to optimize users’ yield and bring in extended returns by moving their funds around the DeFi ecosystem.

Yearn Vaults allow its users to manage their holdings by first choosing the strategy that best suits their objectives. You simply deposit into the vault and the technology does the rest for the user by shifting capital, auto-compounding, and rebalancing.

As with most if not all of the similar products and a major advantage of blockchain products, the user retains custody and responsibility for his holdings.

Nexo.io is the leading lender in the space, catering to over 3 million users worldwide, across over 200 jurisdictions. It has even recently backed its first mortgage notably to “Mighty Ducks” actor Brock Pierce.

HyperDex acts much like a traditional asset management company, yet it effectively captures the value generated by DeFi, through various strategies and cubes.

It offers solutions to both investors and other platforms which can integrate its Cube Model into their products. 

Its main products are placed into different containers known as ‘Cubes’, which are very similar to liquidity pools. These cubes allow investors to select a particular strategy, to generate the expected income, without any hidden fees or market mechanics. 

According to HyperDex, “We can run our platform on other blockchains, for now, the ones that use the Ethereum Virtual Machine (EVM), such as Fantom, Avax, Polkadot and more. In the near future, we plan to run the cubes also on Cardano, and on the Stellar network ( 2023)”

Each of the three different types of investment strategies, come with varied returns and risks:

Bottom Line

For a platform or exchange incorporating these external products brings more value and choice to the user and often much deeper liquidity as a result of the holdings funneled through each product. For a platform, it really is a win-win.


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