The existing financial system has a lot to offer, but not everyone has access to it, and sometimes its effectiveness leaves much to be desired. The DeFi industry is gaining more and more popularity.
Thanks to decentralized finance (DeFi), people around the world have access to financial services. DeFi reduces the risk of losing hard-earned money due to financial institutions ‘ risk appetite, mistakes, and fraud. In addition, people can avoid the problems that the centralization of such organizations entails.
What is DeFi?
The DeFi industry strives to provide alternatives to many traditional financial products and services: trading, lending, investment opportunities, eliminating their shortcomings and opening access to the system for everyone.
DeFi creates an infrastructure for crypto assets that can be used and generate revenue, instead of just lying in users ‘ wallets. The main feature of DeFi projects is to rethink the basic mechanisms of financial decisions and increase their efficiency through decentralization and advanced technologies. Here are some of them:
Optimization of risks and benefits at the expense of decentralization and automation. In DeFi, users have full control and transparent information about their assets. This means that money cannot be invested in risky initiatives without the owner’s knowledge. Money cannot be blocked by the decision of a centralized organization or government. Users receive transparent data about financial products on the blockchain and make optimal decisions about how to use their money.
Numerous ways to make a profit and use cryptocurrency. DeFi offers a lot of opportunities to profit from crypto assets, without the need to sell them. At the same time, to access such services, you do not need to comply with strict requirements, as in the traditional finance industry. Therefore, 1.7 billion people around the world who are deprived of access to banking services can use DeFi products.
The opportunity to become shareholders, rather than passive users of the DAO. Many DeFi projects launch DAOs – decentralized autonomous organizations based on the blockchain, which give users the opportunity to become a kind of shareholders and vote on how the DeFi protocols will work and develop, as well as receive income from the operation of these platforms.
DeFi offers users more freedom to participate in interesting projects on their chosen terms and in a decentralized manner, without hidden risks and intermediary fees.
Why are people slow to switch to DeFi
For now, DeFi remains a new concept. The industry will need to better adapt to customer needs and address several issues on the way to maturity:
Only a few DeFi projects offer users realistic revenue models. Many projects offer to make money out of thin air, for example, using game theory. The user invests money and gets more money without understanding how the amount has increased. Such revenue generation models may not be sustainable in the long run, and they put off many users.
DeFi does not have a holistic and user-friendly ecosystem. While one bank can offer a package of solutions for working with money and multiplying it in different ways, such offers in DeFi are not so common yet. Users have to switch between different platforms and pay double fees, spend time studying the services and registering, and bear the risks associated with leaving confidential information on multiple sites.
Only a few Defi projects have been fully audited and operate in accordance with the law. Since all financial products in DeFi are based on smart contracts that automatically execute transactions, it is worth making sure that they work correctly. In addition, users want to be sure that the DeFi project works in accordance with the law and no one will harass the development team, and customers will not leave the platform overnight, which will lead to its collapse.
Nimbus – The new DeFi Ecosystem
Nimbus is a fintech company with a reputable team and many years of experience in providing blockchain-based financial solutions to 50,000 users. In the coming days, the company is launching a new DeFi ecosystem that could well be the industry’s leading solution for years to come. Nimbus combines the best practices of both traditional and decentralized finance and comprehensively solves the key problems of DeFi users.
Nimbus launches the DeFi ecosystem, which offers ten earning strategies based on real-world use cases-from P2P loans to IPOs and crowdfunding. On December 21, Nimbus launches an ecosystem of four decentralized applications and three tokens managed by the DAO, which gives users the opportunity to extract maximum profit from the project.
In Nimbus, there are no implausible models for generating rewards that are not trustworthy and are not widely understood. Each Nimbus decentralized application has a clear revenue generation process. Most decentralized applications are tied to traditional financial instruments and products, the effectiveness of which has been proven for decades. With Nimbus, these products will become available to the cryptocurrency industry for the first time, and their risks will be reduced thanks to DeFi mechanisms.
Once fully launched, the Nimbus ecosystem will consist of four decentralized applications. Two of the most promising ones are:
Nimbus IPO hub dApp. Through the decentralized application, users with any number of crypto assets will be able to participate in the IPO through the liquidity pools. The IPOs will be scrutinized and the Nimbus DAO participants will vote for them. All relevant IPO analytics will be collected in one place so that users can make their own decisions. Users will need to select the amount in the crypto asset that they want to invest in the IPO and start earning their interest. There are no additional fees for brokerage services and no additional registration requirements.
Nimbus Crowdfunding dApp. A unique decentralized tool that will allow anyone who owns a cryptocurrency to participate in the financing of startups in accordance with legal requirements. Users around the world will have access to convertible loans and start-up capital, regardless of the amount they have. Thanks to the mechanics of the liquidity pool, the risks and profits from such participation in crowdfunding will be optimized. Since the money will be distributed among startups automatically under certain conditions, the risk of unsuccessful startup financing is also reduced.
Nimbus will also launch two more decentralized applications. Crypto Arbitrage-Trading DApp, the centralized version of which is already used by 50,000 people, as well as the P2P Lending DApp application, which provides more flexibility and more risk management capabilities for users than many other dApps for lending.
All decentralized applications will be hosted in the same ecosystem and will use a single NUS token, providing access to all of them. In 2020-2021, Nimbus users will have access to ten pools and products with different earning strategies in one place through the NUS token, which will be launched in December 2020.
Nimbus plans to obtain a broker-dealer license from the US Financial Institutions Regulatory Agency (FINRA), licenses from the US National Futures Association (NFA) and the US Securities and Exchange Commission (SEC). With their help, Nimbus will be able to give users access to additional asset classes and investment products. For example, to share participation in secondary markets before an IPO, to which no ordinary person has access today.
However, the use of decentralized applications is not the only opportunity for users to participate in the Nimbus ecosystem. To provide true user control over the Nimbus platform and additional revenue opportunities, Nimbus launches the Nimbus DAO and the GNUS management token.
With the GNUS token, any user will have the opportunity to participate in making decisions about the operation of the Nimbus platform and receive a share of its revenue. Only 10% of the management tokens will remain with the Nimbus Organization, which will ensure true decentralization of management.
Nimbus has been around for a year and already serves 50,000 users. The international team of the project consists of well-known professionals with an excellent reputation, including former top managers of the largest modern international corporations, for example, Huawei. Together, they cover all areas of knowledge necessary for a successful project launch, including cryptocurrency, blockchain, DeFi, artificial intelligence, finance, and cybersecurity.
The company also expects to be audited by leading smart contract audit firms, such as Zokyo, to enter into agreements with liquidity providers, and to obtain a crowdfunding license in the EU.
Launching a DeFi ecosystem for Nimbus is not a way to play on the popularity of the industry or quickly gain benefits for its employees. This is the way to fulfill the Nimbus mission in the most efficient way, and the project team maintains high standards of performance.
The Nimbus DeFi ecosystem will be launched in December 2020, and anyone can participate in its work. Nimbus is currently finalizing the development and audit of DeFi functionality and is preparing for a launch scheduled for December 21.
During the launch, one of the three Nimbus tokens, NUS, will appear in the Uniswap listing. This token will be required to access any other features of the platform, whether it is two other tokens or four decentralized applications that will be launched in December 2020 or in 2021.