DeFi or Decentralized Finance is the name that defines the megatrend that has emerged around blockchain technology in recent years.
Decentralized finance is a set of financial applications based on blockchain networks that, in principle, do not need intermediaries to function. The rise of these financial products, which have characteristics similar to traditional products, could change the finance sector to some extent and brings with it opportunities and challenges.
DeFi seeks to develop traditional financial products, but with a higher degree of transparency and decentralization. These products are like lego bricks and can be combined with each other to develop an entire ecosystem of solutions that together form a great financial solution, making centralized and opaque financial institutions obsolete.
This is the idea that drove the term “DeFi” and the idea that led to its evolution to what it is today. In fact, it is impossible to ignore the huge impact of DeFi on the world of cryptocurrencies right now. For this reason, we have opened a space to understand what DeFi is and how this idea can change the world of finance.
The main reason to talk about Decentralized Finance on EOS is because of its technology. The EOS blockchain is capable of processing thousands and even tens of thousands of transactions per second, while other networks suffer from congestion with a maximum of 15 transactions per second.
Another fundamental and very prominent reason is that Dapps that are developed on EOS provide the user with free transactions. Compared to other networks where users pay high fees to transact, users on EOS do not have to pay network fees and in the case they do, the network fees are very close to 0.
Another cool addition is that two teams of Latin American developers from the EOS blockchain joined forces to boost the DeFi ecosystem within the network. EOS Costa Rica and EOS Argentina partnered up to continue promoting the DeFi ecosystem on the EOS network. They seek to support the development of DeFi applications and foster their growth within EOSIO, the base protocol of EOS.
Let’s start with DefiBox because it is practically the largest of the decentralized finance DApps within EOS due to its volume, liquidity, number of daily users and the variety of finance protocols it offers.
In the Swap section we are going to find a fairly busy market, with access to practically all the tokens that are traded on the EOS network. You can come here and quickly “swap” or exchange one token for another.
You can also obtain some earnings with DefiBox Swaps by providing liquidity of a pair of tokens (for example 50% EOS and 50% pBTC) and everyone who makes a swap between that pair will pay a commission from which you will earn a share. In addition, you will earn a portion of the platform’s own BOX token every second for being a liquidity provider (LP).
Also, to promote the use of the platform, some pairs like EOS/USDT reward you with a portion of BOX each time you make a swap between that pair of tokens.
Defis Network is another platform available to swap tokens. It is one of the DeFi platforms with the highest volume within the EOS network. It has a similar user interface with DefiBox. However, its main target audience seems to be focused on the Chinese community.
Defis Network has its native token DFS and has been home of several yield farming projects that at the time, generated a lot of movement during what is known as the DeFi Summer of 2020, when all this yield farming theme had its explosion of fame in the media.
You can earn some profit on the platform the same way as described above when we explained DefiBox. All things considered, they are quite similar.