Decentralized Finance, or “Defi” in the crypto space, is currently one of the hottest trending cryptocurrency innovations that yield investors. Defi is designed to provide decentralized financial services to underserved markets. All that is needed is to have cryptocurrencies and Internet access. While the traditional centralized banks initially provided these financial services, that business model does not serve everyone who needs it.
There has been a tremendous amount of funds flowing into DeFi, and the reason is that its popularity has grown in the past year. DeFi has increased its total locked value to an unprecedented $13 billion and is predicted to continue to rise to new heights. The secret to DeFi’s success is that it offers trustless and borderless access to everybody.
The DeFi approach offers a new age in banking services and is expected to contribute to further innovation and development in the financial services space. Hence, DeFi’s future is looking positive, and due to its infancy, it has its fair share of growing pains. The pre-meditated launch of scam projects, or “rug pulls” as they have come to be known, as well as hackers looking for protocol vulnerabilities, are some of the challenges currently plaguing the industry.
As news of new hacks and exploits occur, people can become Leary of investing in the market as they perceive it as a digital minefield. DeFi has the reputation of being the wild west of the crypto space. These questionable projects and activities continue to grow, along with DeFi’s popularity.
Fortunately, YFDAI has been setting a new standard in DeFi by using the “best practices” approach to help eliminate much of the sector’s risk.
How Does YFDAI Revolutionize The DeFi Industry?
YFDAI has opted to take a different path to DeFi. Rather than following an inefficient and unsustainable business model like many projects are being rushed to market, YFDAI has done things the right way by methodically building out the YFDAI ecosystem of products and services and self-regulating their project.
YFDAI has locked liquidity and team tokens in time-locked audited smart contracts, thereby laying a solid cornerstone as their foundation. The Blockchain Consilium, a renowned blockchain auditing company, has audited YFDAI’s contracts and the protocol.
The team is public. Their names, wallet addresses, and social accounts, have all been disclosed. They regularly interact with the community to discuss the fundamental aspects of the project. The DAO will be launched soon, and governance will be turned over to the community so that the DeFi aspects of the project remain sufficiently decentralized.
In choosing this solid foundation of transparency, professionalism, and dedication to setting these new standards in the industry, YFDAI stands out to introduce a safer and more trustworthy example for other projects to follow.
YFDAI’s security and accountability position has improved the safety of its own protocol and gained considerable attention from the DeFi community as being one of the few projects that look out for the investor’s best interests.
YFDAI – Above The Basics
As a leader of DeFi, the YFDAI team recognizes that the project has to continue to strive for further innovation to achieve sustainability and lasting success. The YFDAI project is being developed by a Singapore-based company and has been authorized by regulators in Estonia to deploy a centralized Crypto Exchange and wallet licenses.
This is an enormous accomplishment since YFDAI’s licenses enable new services and financial instruments to be launched, such as a Fiat - Crypto on/off-ramp, a debit card, and an e-commerce suite, all coming in Q1 2021. Furthermore, as part of their ongoing efforts to remain fully compliant, YFDAI has obtained legal opinions on SEC guidelines and other regulations.
It is essential for YFDAI to set a path to a better DeFi future. This is why it has implemented the same criteria for other DeFi projects wishing to use the YFDAI LaunchPad and SafeSwap DEX to follow as a benchmark.
Security and regulation, particularly in the case of DeFi, are often believed to be sacrificed for independence and decentralization. In practice, YFDAI has not compromised decentralization and has always strived to maintain a balance.
Further, YFDAI has never failed to comply with existing regulations by adhering to industry standards of self-regulation through its safe and open business model. The primary objective of DeFi protocols should always be to follow the correct policies in security and accountability.
This is YFDAI’s primary objective, and it should be the primary directive of all projects in the DeFi space. By championing the investors’ interests, YFDAI will ultimately encourage new waves of creativity and innovation and open up new possibilities in DeFi.
In its ongoing effort to set new standards in the industry, YFDAI is the lead sponsor of the Global DeFi Summit, scheduled for 6th January 2021. To learn more about DeFi, click the following link to register.