Decentralized finance (DeFi) reached over $150 billion in total value locked (TVL) in the last year. Despite this exceptional increase in TVL (from under a billion at the start of 2020), the number of users that interact with DeFi still pales in comparison with how many people invest in the rest of the crypto market, and these numbers are a drop in the bucket compared to those posted by traditional finance.
DeFi’s TVL is only a fraction of the two trillion dollar valuation of the entire crypto market. Furthermore, the entire crypto market is valued at a figure smaller than just one publicly traded company on the stock market, Apple. Putting these figures side by side, one could assert that the growth potential for DeFi is astounding.
That being said, peer-to-peer financial services delivered through blockchain technology may have a bullish future ahead, but they will need an extra push to increase their adoption beyond the tech-savvy crowd.
This is where the copy-trading decentralized application (dApp) FNDZ is opening DeFi’s doors to mass adoption by providing an easy-to-use platform for learning how to participate in token swaps on decentralized exchanges (DEXs) by following expert traders.
Shifting the Rising Interest in Crypto Markets Towards DeFi
Social trading platforms have helped increase the number of retail traders over the last decade, and copy-trading has become an incredibly popular way for new traders to learn about markets. FNDZ is providing a similar service for crypto trading that eases users’ entry to DeFi through its decentralized and transparent copy-trading platform, so users don’t have to make the journey into DeFi by themselves.
Valentino Cremona, Operations and Tech Lead at FNDZ, says, “Moving users away from centralized services and towards decentralized trading is a major step forward for the mass adoption of DeFi. FNDZ ensures the trustless benefits of blockchain technology can be harnessed by newbies through a user experience that rivals most centralized exchanges (CEX).”
Differentiating User-Friendly DeFi from Centralized Platforms
Although FNDZ has been developed to match the ease of using a CEX, decentralization and transparency set FNDZ apart from centralized trading platforms in several ways.
Centralized platforms offer their services off-chain and can levy hidden fees, and these fees can eat away at any profits made through trading. In addition to chipping away at profits, these platforms expose investors to unnecessary risks through the use of contracts for difference (CFDs).
In short, investors do not retain custody of the assets they buy through their trading platform when signing a CFD. Consequently, the platform’s bankruptcy, mismanagement, or security flaws that lead to a hack could mean investors may witness their holdings disappear overnight.
Robin Ubaghs, Marketing & Growth Lead at FNDZ, says, “FNDZ solves these problems through its embrace of decentralization. Users retain custody of all of their assets when using FNDZ, and the platform allows users to interact with its copy-trading services through an easy-to-use dApp run by a distribution of audited smart contracts, instead of just one contract that can attract exploits, for added security.”
Benefits for Traders of All Levels
Fees for copy-trading services are transparent and posted upfront by the expert traders each user can follow for guidance in the crypto market, and trades are made through DEXs where transactions can be tracked through on-chain data. Here, it’s important to note that DEXs operate as automatic systems that ensure with 100% certainty that no intermediary can interfere with a token swap, so trades are always executed fairly and according to code.
Another benefit of leveraging an open-source platform like FNDZ is increased access and rewards for traders that want to monetize their following. For example, FNDZ allows traders to receive a commission for each user who wants to copy their trades. A trader can then stake FNDZ to earn fee discounts and rewards from each of their trader’s profits. The best part is anyone can create a trading vault and the most successful vaults will be ranked and indexed by an algorithm to ensure transparency and recognition are both met.
Complete Decentralization from the Bottom to the Top
FNDZ ticks all the boxes for what makes a DeFi platform such a powerful tool, and it strives to make this powerful tool accessible to everyone no matter what their prior knowledge of DeFi.
In a further nod towards DeFi standards, FNDZ will operate as a decentralized autonomous organization (DAO), which means there won’t be a traditional corporate hierarchy running the platform. Rather, in lieu of a CEO, anyone who holds $FNDZ tokens will be granted voting power over how the platform operates in the future, making FNDZ a platform run by its members, for its members.
DeFi is growing, and the goal of the DeFi community is to get as many people on board as possible. Since DeFi depends on the power of people to make the system work, the more people who participate in DeFi, the better DeFi works for all who participate. Geared towards this goal, FNDZ’s DeFi-centric copy-trading platform could be the catalyst that finally brings DeFi to the masses.
Image by Sergei Tokmakov Terms.Law from Pixabay