The concept of decentralized finance (DeFi) has become rapidly popular. The fast-paced adoption of decentralized finance is leaving traditional finance far behind. Growing from a simple Telegram chat room to a global financial system, it will soon revolutionize the financial mechanism we are aware of today.
Historical Development of DeFi
The term “DeFi”, was first coined in August 2018 in a Telegram private chat. The developers were debating the need for officially developing a system of finance that empowers the investors more without the involvement of any third party. The term emerged from defiance of centralized intermediaries that was the original idea behind the DeFi protocol.
The first alternative to centralized finance, mainly the central banks, was the launch of MakerDAO. It is believed to be the first DeFi protocol, established in December 2017. MakerDAO provides an opportunity for its users to trade in stablecoins, coins that are pegged by cryptocurrency.
Ever since the launch of the MakerDAO, the decentralized world boomed. It came out with many innovative protocols and expanded into several prospects. Apart from conventional lending and borrowing, it introduced derivatives, swaps, options, NFTs, smart contracts, digital wallets, and many more.
The Striking Feature of DeFi
In the traditional financial system, the investor had to compromise some of its funds in the form of facilitation fees to banks, to carry out the transactions. The banks act as an intermediary that charges a fee for integrating two parties. Apart from this fee, the intervention of other regulatory authorities makes a transaction a lengthy process.
On the other hand, decentralized finance eliminates the intervention of the third party and the direct contact between the trading parties with help of smart contracts. Smart contracts are automated programmed contracts that set the agreement between parties at the time of finalization of the contract. This feature saves the capital of investors and makes the transaction significantly short and efficient.
Emergence of EQIBank
As the world is witnessing the shift from banks to DeFi, EQIBank rode against the tides and introduced the world’s first licensed online bank which operates on the principles of decentralized finance.
EQIFI facilitates the creation of wealth for its users. The users of EQIFI tokens known as EQX will have an opportunity to avail themselves of fixed and variable rate products, interest rate swaps, and an automatic yield farming aggregator. Moreover, EQIBank will offer loans, custody, debit and credit cards, OTC, and wealth management tools in an accessible and integrated form that connects to the decentralized world.
Empire Token has engineered DeFiGram.io, specifically for DeFi projects and communities. It allows users to interact with DeFi projects and communities through a single, user-friendly interface DefiGram.io is an all-in-one app with the goal to bring all DeFi users under one umbrella. It has two major features–Community Management App and Wallet–which are directly linked to each other.
DeFiGram.io ties all the loops together and makes use of our protocols from both the NFT Marketplace and Goosebumps to offer our users a never-before-seen DeFi investing experience. Imagine an app where you can communicate in real-time, choose to invest only in trusted projects, and going further, invest in projects directly from verified project chat rooms, with in-app token purchases across different chains.
The initial idea for DeFiGram.io was born out of the problem DeFi investors face choosing projects to invest in groups on Telegram or Reddit, for example. Through lack of moderation and lack of trust, many investors lose money they can’t afford to lose, every day. With DeFiGram.io we propose to bring a DeFi investing environment freer of threats, spam, and scams, presenting the best that Blockchain technology and decentralized finance investing can offer.
DeFiGram.io development is nearing the end of the first phase, which is focused on determining the best user experience, and also offering a functional chatting system where users can sign up using two-factor verification, add friends, create or join communities, and of course sending and receiving of messages securely. The second development phase will be announced soon to the entire Empire Token community.
Although the DeFi world will completely overcome the traditional banking system yet there is hope the intermediaries will keep up their pace with decentralized innovations and come up with modern features that bridge the gap between advancing DeFi and the lagging banking system. It is time to accept the reality of the success of decentralized finance that will soon fade away from the conventional method of finance.