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What is Decentralized Finance? How MetaMine use DeFi

How MetaMine use DeFi

What is Decentralized Finance?

DeFi stands for “decentralized finance” and refers to the ecosystem comprised of financial applications that are being developed based on secure distributed ledgers similar to those used by cryptocurrencies.

With DeFi, you can do most of the things that banks support, like: sending money anywhere in the world, storing money using crypto wallets, earn interest, borrow, lend, buy insurance, trade derivatives, trade assets, and more but The system removes the control banks and institutions have on money, financial products, and financial services.

The goal of DeFi is to create an open financial market that is trustless and permissionless.

DeFi vs traditional finance

In centralized finance, your money is held by banks, corporations whose overarching goal is to make money. The financial system is full of third parties who facilitate money movement between parties, with each one charging fees for using their services.

Decentralized finance eliminates intermediaries by allowing people, merchants, and businesses to conduct financial transactions through emerging technology. This is accomplished through peer-to-peer financial networks that use security protocols, connectivity, software, and hardware advancements.

DeFi vs traditional finance

DeFi

Traditional finance

You hold your money.

Your money is held by companies.
You control where your money goes and how it’s spent.

You have to trust companies not to mismanage your money, like lend to risky borrowers.

Transfers of funds happen in minutes.

Payments can take days due to manual processes.
Transaction activity is pseudonymous. Financial activity is tightly coupled with your identity.
DeFi is open to anyone.

You must apply to use financial services.

The markets are always open.

Markets close because employees need breaks.
It’s built on transparency – anyone can look at a product’s data and inspect how the system works.

Financial institutions are closed books: you can’t ask to see their loan history, a record of their managed assets, and so on.

What can you do with DeFi?

The goal of DeFi is to get rid of the third parties that are involved in all financial transactions. Users typically engage with DeFi via software called dapps “decentralized apps”, most of which currently run on the Ethereum blockchain and Binance smart chain.

Here are some of the ways people are engaging with DeFi today:

Sending money anywhere in the world

Stream money around the globe

Storing money using crypto wallets

Access stable currencies

Trade NFT

Borrow funds with collateral

Borrow without collateral

Start crypto savings

Trade tokens

Trade derivatives

Buy insurance

Grow your portfolio

Fund your ideas

Buy insurance

Play to Earn game

Manage your portfolio

How to Build DeFi?

DeFi is an open-source movement. The DeFi protocols and applications are all open for you to inspect, fork, and innovate on. Because of this layered stack (they all share the same base blockchain and assets), protocols can be mixed and matched to unlock unique combo opportunities.

A decentralized application (dApp) is an application built on a decentralized network that combines a smart contract and a frontend user interface. On Ethereum and Binance smart chain, smart contracts are accessible and transparent – like open APIs – so your dApp can even include a smart contract that someone else has written.

MetaMine is a new type of Metaverse game, owned and operated by its players. Earn MTM tokens by playing and use them to decide the future of the game!

MetaMine tries to work with DeFi technologies for accepting all kinds of businesses and services and has a very close relationship with its user.

MTM token and DeFi

In addition to being the native in-game currency, MTM token will also be used for participation in decentralized voting. Voting with your MTM will be incentivized, and many proposals will include aspects like development, operations, and optimization of the game itself.

Through the use of gamification techniques, stakeholders will be rewarded through the enjoyment of the Metaverse platform, creating a self-sustaining system for community expansion.

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