The world of DeFi has taken the cryptocurrency space by storm over the past few months, with activity on Ethereum booming as it took the spot as the hub of DeFi. DeFi is short for decentralised finance and is essentially a number of automated smart contracts that allow users to use traditional financial tools in an entirely decentralised manner. Everything from lending/borrowing, to exchanging tokens, to margin trading and even decentralised analytics. Many people jumped on this new scene and profited greatly from it by staking tokens, lending, trading and much more.
However, until not too long ago this was unfortunately only limited to Ethereum and any tokens built on it, so other cryptocurrencies were left out of this rush. However, multiple services appeared in order to “wrap” tokens for use on Ethereum and therefore in DeFi platforms. Wrapped tokens are basically a 1-to-1 backed token on Ethereum that is backed by 1 of the original currency that is locked back on its native chain. This started with Bitcoin with tokens such as WBTC, renBTC and sBTC introducing Bitcoin on Ethereum. Over time, more coins were available in a wrapped version, and soon Dash will become one of those...
Read more: https://www.dashnation.com/media/news/is-defi-the-next-step-for-dash/
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