If you acquired a little cryptocurrency last year, you might be asking yourself, what’s the big deal? All you’ve seen is the value rise, then fall, sputter and try to claw its way back. It just looks like a fad. You might have a point: the total cryptocurrency market value plummeted from $3 trillion in November to $1.2 trillion in just two months, and now is at $2 trillion. But don’t forget, it was only $155 billion two years ago, which means it increased almost 1200% in value, which is a big deal.
That makes you think twice about getting out, but do you just hold on, sit back and watch your crypto ride the waves of volatility? Actually, that’s like putting your new currency under the mattress hoping that it will somehow multiply its worth. A better plan is to put it to work earning more assets for you with decentralized finance.
DeFi is a new industry that provides crypto owners with earning strategies for their crypts assets, like those traditional financial institutions provide for fiat currency. Evolving every year, the best DeFi platforms have refined their business models and user experience over the last few years to attract wider markets. However, newcomers might still find their vocabulary and strategies too complex and overwhelming for those not versed in tech or finance. More importantly, it’s difficult to tell which works the best and which have the best products. Let’s review some basics, and see how one innovative platform, Nimbus, resolves these issues.
Like cryptocurrency itself, DeFi utilizes blockchain technology that securely verifies, executes and records transactions on decentralized ledgers. These transactional functions are not performed by some teller, accountant or lawyer, but by smart contracts. At the core of blockchain and DeFi, smart contracts are computer algorithms to automatically execute transactions.
On many platforms, including Nimbus, not all smart contracts are unique since they use parts of the same logic that other functionalities have, such as the popular token exchange Uniswap. Nimbus is unique in that it assembles all of these parts in one place and combines them for their users. Most users don’t want to visit numerous different platforms or learn how to use multiple tools. Rather, they want the ease and efficiency Nimbus offers with all their products and a simple, easy-to-use interface.
Furthermore, Nimbus does have unique products and is developing more. Nimbus created the first yield-generating NFT. The n-NFT functions like a personalized financial strategy, automatically distributing assets across products. This product mitigates risk and optimizes yields while saving their users time and fees. In addition, Nimbus will be offering a unique IPO hub that will allow users to use digital assets for acquiring IPO shares without a brokerage license or fees. This IPO Hub will provide sophisticated evaluation mechanisms and relevant analytics for users to research all in one place.
Whether they’re shared, combined or created, smart contacts are built by a development team of computer programmers with blockchain expertise. DeFi start-ups often outsource this task to smart contract development companies, but it may be one of their most costly mistakes. Nimbus admits that there could be a few instances when they need to outsource temporarily, such as outsourcing the initial stage of a new concept to see if it will work in the market. A company may also need to launch something quickly, or outsourcing could be necessary for legal issues. However, Nimbus avoids outsourcing for several reasons. First, if the products of a company are held by the outsourced technical team, the company doesn’t really have the technology and they don’t have control of the products. Second, a carefully assembled, dedicated in-house development team in a productive environment can work together synergistically within an organization over the long term.
Nimbus Platform carefully assembled a dedicated in-house development team to prevent errors and loss of control. They know it’s critical that smart contracts are analyzed and thoroughly tested to ensure they work effectively, and developers must be aware of the vulnerabilities of smart contracts to counter any weaknesses. Nimbus emphasizes that its smart contract developers should know financial basics, but they don’t need a background in finance because multifaceted perspectives are more important for the company.
Ready to take that cryptocurrency out of hibernation? Then make sure you investigate the opportunities DeFi offers, and use a reputable platform like Nimbus.
