This finance-focused startup aims to bring DeFi to the Bitcoin blockchain.

The crypto industry has a lot to offer the world, but there is no denying that decentralized finance (DeFi) is one of the most valuable innovations.

With the inherent decentralization of blockchain technology, DeFi offers users many of the benefits of traditional finance, such as: B. Generating passive income through lending, but with one major benefit: the elimination of the third-party intermediary.

By removing the middleman, DeFi users have more control over their financial processes. They can earn higher interest rates on lendable assets, facilitate a better deal on borrowing, or simply earn higher returns on their tokenized holdings. The possibilities are endless, but also limited by many of the leading DeFi networks.

Ethereum (ETH), for example, comes with transaction fees, long latencies, and other side effects of network congestion. However, a blockchain offers an alternative to Ethereum and other DeFi applications that use Bitcoin (BTC) for all things. This blockchain is DeFiChain.

Bitcoin-based DeFi
When it comes to decentralized finance applications, DeFiChain follows a completely different strategy than Ethereum or other famous blockchains. Rather than integrating a DeFi application onto the blockchain as decentralized applications (DApps), each DeFi-related use case is natively programmed on-chain itself.

Thus, every financial application is so deeply embedded in the blockchain that changes can only be made through hard forks. In short, DeFi protocols are more decentralized, native currency DFI serves as the government token for all DeFi applications, and no single developer can stand above individual masternode solutions.

DeFiChain brings together all known DeFi applications – staking, liquidity mining and lending – and offers decentralized synthetic stocks, commodities, decentralized stablecoin (dUSD) and precious metals in a single blockchain that is firmly embedded in the blockchain.

However, the DeFiChain network operates completely separately from Bitcoin, but uses the same tried and tested principles to ensure high security. DeFiChain has higher transaction throughput and lower fees, allowing users to enjoy truly decentralized finance applications. Unlike Bitcoin, this is a proof-of-stake protocol.

From there, DeFiChain uses the power of packaging to ensure interoperability. Users can leverage wrapped Bitcoins, Ethereum, or other supported crypto assets, allowing users to access decentralized finance applications while keeping Bitcoin or Ethereum in their portfolio. DeFiChain offers various gateways and bridges to exchange Bitcoin, Ethereum, USDC, Dodge and more for dBitcoin, dEthereum, dUSDC, dDodge.

master of finance
The team believes that focusing on one application type ensures they can offer their users the best possible experience. They don’t want to be a one-stop DeFi platform, they want to be a decentralized finance master.

According to one of the platform engineers, Prasanna Longanathar, “DeFiChain integrates all major DeFi applications on a single blockchain, offering its users the ability to create diverse portfolios covering nearly every asset class in a fully decentralized manner.”

The DeFiChain team works hard to create new offers for its users. Recent success is the introduction of decentralized assets such as stocks, commodities and indices. In the next update, DeFiChain will be able to offer its users decentralized futures and options trading.

Source: CoinTelegraph