#CryptoLending

[cryptonstocks]

Arcario AB Expands Its FinTech Horizon with Strategic Acquisition of Vanir

💥 Big news! #ArcarioAB (ARCA) just acquired Vanir, diving deeper into the world of crypto and DeFi. Watch this space! 🌟 #FinTech #CryptoLending https://crocon-media.com/arcario-ab-expands-its-fintech-horizon-with-strategic-acquisition-of-vanir/

[cryptoandbitcoinforall]

Diving into decentralized finance (DeFi): Revolutionizing traditional banking

With the introduction of decentralized finance (DeFi), the financial environment has experienced tremendous upheaval recently. DeFi is an innovative movement that uses blockchain technology to provide a rival to conventional financial institutions. DeFi creates new avenues for financial inclusion, transparency, and innovation by getting rid of middlemen and centralized agencies. This article delves deep into the realm of DeFi, examining its fundamental tenets, advantages, and potential to transform conventional banking as we currently know it.

I. Understanding DeFi

 A collection of financial services and apps created on blockchain networks like Ethereum is referred to as "decentralized finance," or "DeFi." DeFi solutions work without centralized management, in contrast to traditional financial systems, allowing peer-to-peer exchanges and interactions. Lending, borrowing, trading, and yield cultivation are just a few of the many financial operations that can be automated thanks to smart contracts, which are self-executing sections of code. Users now have more freedom and control over their money because of this.

Decentralized exchanges (DEX), lending platforms, stablecoins, asset management protocols, and more fall under the umbrella of DeFi. Each of these applications is made to function without the use of middlemen, relying instead on the security and transparency of the blockchain to uphold participant confidence.

II. Fundamentals of DeFi

a. Decentralization

Decentralized networks, on which DeFi systems are built, ensure that no one organization has complete control over the system. This lessens the possibility of censorship or manipulation. Greater resilience is another benefit of decentralization because there is no one point of failure.

b. Open source

The majority of DeFi protocols allow anybody to view the source code, suggest changes, or create new applications, encouraging community creativity. The DeFi ecosystem benefits from openness, trust, and cooperation fostered by this open strategy.

c. Interoperability

DeFi projects can communicate with one another using smart contracts, resulting in a seamless environment that is interconnected. Users can access a variety of DeFi services thanks to this interoperability without switching platforms or juggling various credentials.

d. Transparency

Since blockchain transactions are visible and openly verifiable, they foster user confidence and lower the likelihood of fraud. Each transaction can be examined by participants to make sure the protocol is operating as planned.

III. Advantages of DeFi:

a. Financial inclusion

DeFi eliminates the requirement for traditional banking infrastructure, allowing individuals with restricted bank access to engage in a range of financial activities with just a smartphone and an Internet connection. DeFi can be a lifeline for consumers looking for basic financial services in places where banking services are expensive or infrequent.

b. Lower barriers

DeFi platforms typically feature reduced entry barriers, making it possible for anybody to lend, borrow, trade, or invest without having to go through a lengthy approval process. Individuals may manage their finances and take part in the global economy because of this inclusion.

c. Global accessibility

DeFi runs on a network with no physical borders, allowing users to conduct financial transactions from anywhere in the world. This accessibility on a global scale encourages new levels of financial inclusion and cooperation.

d. Enhanced security

Compared to conventional banking systems, DeFi lowers the danger of fraud and piracy due to cryptographic security mechanisms used in blockchain technology. Smart contracts eliminate human mistakes and potential manipulation by running exactly as intended.

e. Opportunities for earning returns

Users can engage in profitable activities like yield farming and liquidity provision, which frequently provide returns that are larger than those of conventional savings accounts. The open and competitive nature of DeFi may inspire new strategies for making passive income.

IV. Challenges and risks

a. Security vulnerabilities

Although blockchain technology is thought to be secure, smart contract faults and vulnerabilities have in the past resulted in large financial losses. In-depth security audits and assessments must be performed on DeFi protocols to reduce risks and safeguard user payments.

b. Regulation and compliance

 Because DeFi is decentralized, it can be difficult to comply with regulations, which could cause problems with conventional financial systems. DeFi's long-term success depends on finding a compromise between regulatory compliance and upholding its fundamental beliefs.

c. Scalability

Due to the present constraints of blockchain networks, DeFi platforms may not be as effective or scalable, which could result in increased transaction costs during busy times. To solve these problems, Layer 2 scaling and advancements in blockchain technology are being investigated.

d. User experience

For non-technical users, DeFi platforms might be daunting and difficult. For adoption to become widespread, user experience must be enhanced and user interfaces must be made more approachable.

V. Traditional banking and DeFi

a. Disintermediation

By doing away with middlemen like banks and financial organizations, DeFi lowers costs and boosts the effectiveness of financial transactions. Smart contracts allow for direct user interaction, doing away with middlemen and their related expenses.

b. Cross-border payments:

 Due to DeFi's borderless nature, cross-border payments and fund transfers are simple and quick without the use of intermediaries or currency changes. This can considerably lower the price and duration of international transfers.

c. Financial services access

DeFi can give underbanked and unbanked populations access to financial services, promoting greater financial inclusion. People who live in remote locations can use DeFi applications because all they need is an internet connection and a digital wallet.

d. Finance that can be programmed

DeFi's programmability enables the development of high-end financial goods and services. Smart contracts enable users to customize financial strategies, automate investment choices, and carry out complicated transactions.

CONCLUSION

Decentralized finance (DeFi) is a force for disruption in the financial sector, upending conventional banking practices and providing a viable future alternative. The way individuals interact with money, assets, and financial services is going to undergo a radical change as decentralized finance advances and gains popularity.

To fully utilize DeFi's potential to improve traditional banking, it is crucial to find a balance between innovation and security while navigating the regulatory environment. DeFi can transform the global financial environment and provide people with unmatched access to a wide range of financial opportunities by encouraging financial inclusion, transparency, and autonomy. Collaboration between the crypto community, authorities, and established financial institutions will be essential to building a peaceful and successful future for decentralized finance as we advance in the field of DeFi.

If you're interested in learning more, you can check out my recommended “Course of Crypto and Bitcoin”

"Disclosure: This article includes affiliate links. If you click on these links and make a purchase, I may earn a commission at no additional cost to you. I only recommend products or services that I have personally used and believe will add value to my readers. Your support through these affiliate links is greatly appreciated and helps me continue to provide valuable content on mastercryptoforall.blogspot.com. Thank you!"

[iampjr]

$XVS.X #VenusProtocol's governance token is looking at its 11th straight higher close on the daily Heikin-Ashi chart. Highest close since August. #cryptolending #defi #web3 #BNB https://t.co/V6CJW111vh

$XVS.X #VenusProtocol’s governance token is looking at its 11th straight higher close on the daily Heikin-Ashi chart. Highest close since August. #cryptolending #defi #web3 #BNB https://t.co/V6CJW111vh

$XVS.X #VenusProtocol’s governance token is looking at its 11th straight higher close on the daily Heikin-Ashi chart. Highest close since August. #cryptolending #defi #web3 #BNB https://t.co/V6CJW111vh — Patrick Rooney (@patrickrooney) Oct 3, 2022 https://platform.twitter.com/widgets.js from Twitter https://twitter.com/patrickrooney

[bitcoincables]

Bitcoin ETFs in U.S. to Require Cash Transactions, Higher Costs for Retail Investors

Bitcoin exchange-traded funds (ETFs) are expected to launch in the U.S. in mid- to late-January 2024. However, the Securities and Exchange Commission (SEC) is imposing a requirement that could increase costs for retail investors. The SEC wants ETF issuers to conduct transactions using cash instead of Bitcoin, which will result in additional expenses for the issuers. This decision is unusual as in-kind transactions are typically used in other ETFs. Both Fidelity and BlackRock have reportedly requested the option for both cash and in-kind redemptions.

The rationale behind the SEC's decision is not entirely clear. It could be an effort to minimize potential market manipulation or self-dealing among market makers and ETF issuers. However, the likelihood of such manipulation is seen as low. Another possibility is that the SEC wants to impose stricter conditions to make Bitcoin ETFs more expensive and less attractive for investors. Coinbase, meanwhile, plans to appeal the SEC's rejection of its proposal for a new framework for digital assets.

Crypto lending has seen a resurgence, with the number of companies offering blockchain-based loans increasing by 55% in 2023. Despite this, Coinbase's petition to create a new framework for digital assets has been rejected by the SEC. In preparation for the upcoming U.S. election, three crypto Super PACs have raised $78 million to lobby for the industry. Solana's Saga phone, initially considered a failure, is now in high demand due to speculators hoping to receive airdropped BONK tokens. Finally, after 11 weeks of consecutive inflows, Bitcoin saw a slight price decline resulting in an outflow of new funds.

Continue reading the original article on Fortune

Related Hashtags:

#BitcoinETFs #CryptoLending #Coinbase #Solana

[ladookhotnikov]

FTX vs Genesis: Great debt reduction

A notable event occurred in a bankruptcy trial between two bankrupts. FTX was suing cryptolender Genesis.

The plaintiff’s lawyers initially demanded $3.9 bln from lender, arguing that this was the amount of the defendant’s debt. Genesis claimed to disagree with this amount.

As a result, the parties agreed to reduce the amount of debt to $2 bln.

The creditors of cryptolender breathed with relief, they expected long court proceedings and, accordingly, no chance of getting something.

At the same time there is a reasonable question: what arguments forced the representatives of FTX to reduce almost in half their requests and to give 2 billion to their debtor? What is it - a mistake in the exchange’s accounting or an understanding of the impossibility of getting more? The details of the settlement are unknown, so there are no answers to these questions.

Lado Okhotnikov, CEO of Meta Force commented on the settlement agreement:

«On the one hand, the agreement is good. The sooner this story will be closed, the better it will be for the entire crypto community. On the other hand, a $2 billion gift seems overly generous. There were reports that FTX accounting was far from perfect, some inaccuracies were possible, but inaccuracy of this size is too much for even the most frivolous accounting. Perhaps there was a price recalculation of the crypto, or maybe just understanding that Genesis simply has no more funds...»

[blockas46]

Know Blockas A crypto lending platform

Blockas Cryptolend is a secure and innovative crypto lending platform that empowers individuals and businesses to unlock the potential of their digital assets. Seamlessly navigate our platform to lend or borrow cryptocurrency, enjoy competitive interest rates, and maximize your financial opportunities with ease. Trust in Blockas CryptoLend for a seamless and secure lending experience in the world of cryptocurrencies.

[coinexpansionblog]

CRYPTO LENDING PLATFORMS AND THEIR POTENTIAL RISKS https://coinexpansion.com/cryptocurrency-lending-platforms/ https://youtu.be/tGkdsdthkm4 #lendingplatforms, #cryptolending, #crypto, #cryptonews, #cryptoupdates

[surveycircle]

Tweeted

Participants needed for online survey! Topic: "Banking services for web3, based on principles of Islamic finance" https://t.co/VAXRRiVRvI via @SurveyCircle #crypto #blockchain #EthicalFinance #web3 #CryptoLending #lending #survey #surveycircle https://t.co/tQOnBQSstQ

— Daily Research @SurveyCircle (@daily_research) Dec 30, 2022

[cryptograndeenews]

Crypto Landing Platform Hodlonaut Owes Algorand Foundation $35M.

Cryptolending platform Hodlnaut owes the Algorand Foundation $35 million in USD Coin (USDC) stablecoins. The non-profit organization said it was using "all legal remedies" to recover assets… Detail: https://bitcoingrandee.com/news NEWS

[nerdforcrypto]

Can You Use Cryptocurrency as Collateral for a Business Loan?

Can You Use Cryptocurrency as Collateral for a Business Loan?

– Cryptolending is the process of using crypto currency, such as Bitcoin (BTC), as collateral, as you would with a secured loan. – It’s a decentralized finance (or DeFi) service that uses the blockchain to lend crypto assets to borrowers and then get crypto interest. – Both lenders and borrowers use a crypto platform or exchange as a lending marketplace. – Lenders may get a higher annual…

[znewstech]

US Securities' Watchdog Working To Register Crypto Lending Firms

US Securities’ Watchdog Working To Register Crypto Lending Firms

US SEC working to register crypto lending firms The US Securities and Exchange Commission (SEC) is working to get some cryptolending companies properly registered if they operate more as investment firms, the head of the Wall Street regulator told CNBC in an interview on Thursday. SEC Chair Gary Gensler also said it was up to large financial institutions to decide whether they want to include…

[iampjr]

Venus has a new website highlighting our ambassadors who represent us around the globe. Check out the calendar to find an event near you! #moneymarkets #cryptolending @VenusProtocol https://t.co/RECOic9h2d

Venus has a new website highlighting our ambassadors who represent us around the globe. Check out the calendar to find an event near you! #moneymarkets #cryptolending @VenusProtocol https://t.co/RECOic9h2d — Patrick Rooney (@patrickrooney) Apr 1, 2023 https://platform.twitter.com/widgets.js from Twitter https://twitter.com/patrickrooney

[techfeeddata]

Clients of cryptolender Celsius face a long wait for the fate of their funds

Clients of cryptolender Celsius face a long wait for the fate of their funds

Customers of crypto lender Celsius are facing a long and anxious wait to know how, when and if they will ever get their money back after the company filed for bankruptcy and became one of the biggest victims of the collapse in crypto markets this year. Citing extreme market conditions, Celsius froze withdrawals in June, which reverberated across the crypto world and beyond, sparking a $300…

[nigeriabitcoincommunity]

Top Crypto Lending Platforms (Celsius) On The Brink Of Collapse

Top Crypto Lending Platforms On The Brink Of Collapse 1. What happened to Celsius? 2. Voyager and BlockFi are they set to implode? 3. Should you pull your funds off lending platforms? #cryptolending @CelsiusNetwork @coinbureau @investvoyager OBIdient

Sadly, it has been a turbulent ride ever since the 2021 bear market started. And one of the unlucky outcomes has been the failure of major crypto lending platforms with billions of dollars in assets under management. A minute of silence for investors. In this post, I am going to be sharing with you the top crypto lending platforms that got severely hit by this bear market and the way…