With the explosive growth of the decentralized economy in mid-August, Ethereum co-founder Vitalik Buterin warned his supporters of the crypto frenzy: “If you * really * don’t understand what’s going on, it’s best to sit down or participate in very small amounts.”
This was Buterin’s direct consent – not least because the Ethereum blockchain dominates the DeFi industry despite scalability issues. However, his tweet was an admission that these protocols can be very difficult for average investors to understand. Complex concepts and tokens that generate huge returns are often a powerful combination, and many investors have their fingers burned.
ECOChain Financial Growth (EFG) approves. The project says the goal is to make DeFi “easy and accessible for everyone, even beginners, for digital assets.” He also warns that if weaknesses in the industry’s economic cycle are not addressed, the death cycle could cause economic damage to a large sub-sector of users.
EFG’s dApp aims to address the gaps in behavioral investing that can lead people to make decisions that are contrary to their interests.
Because these biases are an important part of human nature, they affect all types of investors, whether professional or private. However, if we understand them and their consequences, we can reduce their impact and work on a solution, ”the company said.
EFG refers to the BSV model, which states that two forms of bias often change investment decisions. The first is an imbalance in representativeness, as investors pay too much attention to changes in the latest data and are not sufficiently aware of the common factors that led to these changes. The difference in storage is also an issue, and this is where investors do not immediately adjust their forecast models based on changed conditions.
The DeFi platform for this project aims to counter this by providing accurate and up-to-date technical analysis data. The Oracle system receives real-time exchange rates from various reliable sources and pumps them into smart contracts, ensuring the decentralization of the system. EFG also states that the dApp excels in this busy area due to its lower gas charges and faster transaction times.
EFG also states that the DeFi industry needs to provide lenders with a more reliable credit channel, but it will take time to create stable and reliable monetary attributes.
This is consistent with arguments put forward by Messari researcher Jacques Pardee, who said the sector is desperate to offer more fixed-rate loans. These rates provide security for lenders and borrowers looking to accurately predict costs and return on equity. Purdy went on to characterize fixed-rate lending as “one of the most fundamental elements of the global financial system.”
More information from EFG here
The EFG dApp, built by ECOChain, is based on the smart contract architecture. All tokens on the DeFi platform are ECRC-20 standard tokens, which are advertised as being similar to the ERC-20 standard found on the Ethereum blockchain.
DApp also aims to be cross-platform through “encapsulated tokens,” which means coins and tokens can be exchanged across multiple blockchains in a decentralized way. These assets have been gaining in popularity lately, as evidenced by the fact that Wrapped Bitcoin (WBTC) recently hit an all-time high with a market value of $ 1.6 billion.
ECOChain, the parent company of EFG, says the blockchain operates with Proof-of-Stake compatibility and supports up to 560 transactions per second. Blocks are also generated every 32 seconds, which helps validate transactions much faster than competing networks.