7 .Main features of Dapps

1. Transparency

DeFi offers the world a new level of transparency. Since most of DeFi applications work on public blockchains like Ethereum and Tron, all transactions are publicly available. In fact, all activities on blockchain are public. The main difference in this approach compared to traditional bank accounts is that the accounts are not tied directly to anyone. Instead, the accounts are pseudo-anonymous and only list one numeric address.

• In particular, although accounts are not directly linked to anyone's name, there are ways for researchers to find out who owns them if asked. Programs like block explorer can help people track and track the decentralized transactions of privacy-focused coins.

2. Open source

The DeFi application must be open source. Open source refers to the fact that encryption is public. This way anyone can test it and validate its functionality, security, and capabilities. Open source is much more stable and secure than native code because of this community interaction. Additionally, it provides more confidence in the platform as users can rest assured that no hidden malicious code is active in the background.

3 .Greater access to financial services globally

Dapps represent scalability in the way that developers envision financial platforms. Anyone from all over the world can join the DeFi platform. You just need a smartphone with internet access and you can join the DeFi community in minutes.

As a result, DeFi Dapps has the potential to provide those without banks around the world access to financial services for the first time in recorded history. This openness is a huge upgrade over the current banking system, where about 40% of the global population does not have any form of banking.

Importantly, when you think about bankless populations, you can easily picture a village somewhere in the tropics or a desert, but the reality is much different. For example, a recent study found that 25% of US households still do not have a bank. It is in these positions that DeFi has an immediate effect.

4. Interactive ability

Another pillar of the DeFi community is interoperability. Interoperability is crucial as it ensures that as more developers enter the space, all previous work is not lost. Instead, users can stack their DeFi products to expand their exposure to this new era economy. For example, typically a user uses stable coins, decentralized exchanges, and wallets together. This strategy was made possible by the seamless integration of DeFi applications.

5 .No permission needed

The DeFi industry operates without a gatekeeper. As such, anyone can develop a DeFi application and make it available to the world. Additionally, anyone can join DeFi Dapps without regard to approval. This strategy is far from today's financial system, which requires potential users to go through a myriad of regulatory verification systems before they can participate in the global economy.

6. Flexibility

Due to the open nature of the DeFi environment, developers can implement more flexibility within their platform. Significant options are available to users through third-party app integrations. In fact, users can even choose to build their own interface if they find the current options insufficient.

7. Decentralized exchange

Many see decentralized exchanges as the logical next step in the evolution of the cryptocurrency sector. These peer-to-peer transaction platforms provide users with a more streamlined UX experience, tighter security, and more flexibility. Traditional exchanges operate through a centralized institution that facilitates, monitors, and approves all transactions within the platform.

The problem with this approach is that it leaves too many attack vectors exposed. Hackers can target exchanges and earn millions of dollars. A quick Google search reveals many examples of exchange hacks in which the central organization suffered major losses. In many cases, these companies were forced to shut down due to losses.

Decentralized exchanges remove many of these concerns. When users exchange assets through a decentralized exchange, the platform never directly holds the asset. Instead, smart contracts are used to allow the simultaneous swaps of one wallet to another. This way, there are no major weaknesses in the platform for hackers to exploit.

8 .Yield farming

One of the new concepts that has emerged is yield farming, which is a new way of earning rewards from existing crypto assets using unauthorized liquidity protocols. Accordingly, anyone can earn passive income using the decentralized ecosystem built on Tron. Therefore, yield farming can change the way HODLing for investors in the future. Why keep your assets idle while being able to operate them?

a.What is Yield farming?

Yield farming is also known as liquidity mining, which generates rewards from crypto assets. In simple terms, it means locking in a cryptocurrency and receiving a reward.

b.Yield farming

In a sense, yield farming can be done in parallel with staking. However, there are many complications. In many cases, it works with users known as liquidity providers (LP) to add funds to liquidity pools.

c.What is a liquidity pool?

Basically, a smart contract contains money. In exchange for providing liquidity to the pool, LP will receive a reward. That reward could come from fees generated by the basic DeFi platform or some other source.

Some liquidity pools pay rewards in different types of tokens. After that, the reward tokens can be deposited into another liquidity pool to earn the next bonus, ... You can see a lot of extremely complex strategies but basically, LP deposits money into a liquidity pool and in return, a reward is earned, seen as a profit.

Yield farming is usually done using a BEP-20 token on Binance Smart Chain and the reward is usually a BEP-20 token.

9. Governance Token

Farmers will receive "farm-cultivation" rewards including Transaction fees (1 part) and Token. These are usually Governance tokens (governance tokens).

With these tokens Governance, one can:

• Staking to increase the percentage of rewards.

• Voting to vote for changes and policies of that project.

• The need to own a Governance token keeps increasing.

10. Swap

Transactions in DeFi often use the word Swap

Money (token) users put in the Pool and exchange for another token. At the same time, another user will receive back the token that the user gave.

Swap-enabled exchanges need to know:

• Uniswap (Ethereum).

• JSBswap (Tron)

• Hora Swap (BSC)

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