DeFi offers investors the authority to protect their wealth from the hands of capital control while discarding the arduous KYC (Know Your Customer) mechanism. Finally, it makes the process of remittance quicker, more effective, and simpler. In this article, we will see how a user can gain DeFi exposure to the broader crypto market.
But the main reason for the rising popularity of DeFi coins is that there are very few restrictions that allow anyone to take part. This feature of DeFi makes it more appealing to those who do not have access to the traditional financial services, either because they do not have adequate formal documents, or because traditional services do not exist in their country.
How To Gain Exposure In The Best DeFi Projects?
Now you may wonder what is DeFi? DeFi, which is also known as decentralized finance, is a new and great way to perform financial transactions via applications. It discards traditional financial institutions and mediators and is directed over the blockchain. Think of it as eliminating exchanges, brokerages, banks, and other mediators from the equation. In place of that, there are DeFi exchanges that serve the purpose.
So without any further delay let us have a look at the products that will allow any user to gain DeFi exposure in the crypto space.
Making Investments Using Balancers Diversified Pool Via Polygon
The Balancer is a programmed trading platform and portfolio manager. It offers the users the chance to put their digital currencies to operate and receive the best value in trade.
For investors, this tool essentially turns 5the idea of an index fund on its head by enabling the users to accumulate from the traders who equilibrate their portfolio by following opportunities of arbitrage. Basically, it allows you to take care of your portfolio like an advanced player, without actually being a pro.
By depositing the assets into the liquidity pools that are incentivized, the user can even claim the $BAL token by Balancer every week on Tuesdays.
For traders, this pool crowdsourced the liquidity from the portfolio of the investors and evaluated the optimal trading that is available. Presently, Balancer allows the exchange of any ERC-20 token. It is easy to initiate, the user will not need to even get an approval or create an account.
DeFi Pulse’s DPI Allows User To Benefit From Its Biggest Token
The DeFi Pulse Index (DPI) token is a DeFi (decentralized finance) index token. The DeFi Pulse Index is a market cap weighted index that is created of the ten most famous Ethereum-based DeFi tokens.
Basically, the DPI token enables you to gain DeFi exposure to the largest tokens in the decentralized finance space.
In place of purchasing these DeFi tokens yourself and having to continuously handle your portfolio, you can just purchase a single DPI token that offers you a revelation to the top 10 tokens. Every month, the token rebalances itself to portray the state of the market.
MakerDAO Offers Intermediary-Free Collateral-Supported Loans
MakerDAO is a decentralized lending platform that is based on Ethereum, created to allow its users to lend and borrow without the risks related to fluctuations. One of the most functional protocols across the crypto space, it issues the Dai stablecoin and promotes loans that are backed by the collaterals.
This token is a stablecoin. Through demand and supply, it focuses on being pegged to USD. You can borrow via the platform by depositing other digital currencies as collateral, and then getting your loan in Dai.
The other token related to the environment, known as MKR, is formulated to offer backstop liquidity in case the system adopts on bad debt. MKR token holders have a part in the operation of the protocol.
Now that you know the ways to gain DeFi exposure, it is important to state that this is a great way to get a good income but for beginners, it can to some extent feel intimidating, especially if you are new in the crypto space. It is a great way for money making but it is crucial to have a concrete understanding of the DeFi crypto meaning and also about the platform before you dive in.