It’s been a tumultuous year for crypto, but there are a few things to celebrate!
It’s Thanksgiving Day – a holiday to reflect on the past year’s blessings and express gratitude for the opportunities.
A federal holiday in the United States, there are variants of this day worldwide, but the essence revolves around gratitude.
On this Thanksgiving day, we take a moment to acknowledge and reflect on things we are thankful for in the Decentralized Finance (DeFi) world.
It has been a seismic year for the cryptocurrency industry with the prolonged bear market and bankruptcy filings of a few centralized exchanges and services. Still, there are a few things to celebrate.
The decentralized finance (DeFi) space encountered hacks, exploits, and scams this year, but 2022 also has been a year when DeFi products went mainstream.
Let’s look at the four things we are thankful for in the DeFi space:
1. A new era of decentralization
DeFi technologies challenge the monopoly of traditional financial approaches. The recent illiquidity of the centralized exchange (CEX), FTX, followed by other centralized entities like BlockFi, and Genesis, has enlivened the anti-CEX narrative. The long-term effects of the FTX crash on the integrated crypto ecosystem have led users to recognize the need for DeFi & DEXs like GammaX as a reckoning force.
Related: Decentralised Exchanges are the future of trading
2. Participatory Democracy:
DeFi reduces the entry barrier and enables more participants to join the financial revolution. Anyone with a smartphone and internet connection can participate in DeFi opportunities, making it more accessible than traditional finance.
Estimates by the World Bank suggest that around 1.7 billion adults are unbanked globally with no access to loans, credit cards, or bank accounts to avail of financial services. DeFi technology offers the opportunity for financial inclusion to the unbanked through alternative, decentralized financial services.
3. Financial Freedom:
DeFi allows more participants to join in financial transactions at a cheaper cost. Investors with a smaller capital base can participate in DeFi by investing in affordable Altcoins or trading in cryptocurrencies responsibly using leverage. With DeFi, investors can reap big rewards by lending crypto or borrowing crypto loans with a trustless approach. Simply put, DeFi allows investors to enter with limited capital and enjoy higher yields on different products.
Related: How to use leverage for Crypto futures trading
4. True Ownership:
DeFi protocols and platforms are non-custodial, which means users always have control over their crypto assets. At GammaX, the order book and matching engine are kept off-chain, while settlement and custody of user funds are handled on-chain through smart contracts. Unlike centralized crypto exchanges, a decentralized exchange DEX like GammaX doesn’t hold your funds, helping protect you from the risk of losing them.
As DeFi runs on a blockchain, there is no middleman or gatekeeper managing the ecosystem. The decentralized nature of blockchain makes DeFi transactions more secure and transparent than services offered by centralized finance.
DeFi has come a long way from replacing the middleman by creating a global, open alternative to the traditional centralized financial services we use today. The services include trading, insurance, investments, loans, and more.
Related: How GammaX’s order book exchange has the best of DEX and CEX
With the recent centralized exchange crisis, there is heightened awareness around DeFi exchanges, protocols, and services among investors. It is only a matter of time before this awareness translates into mass adoption.
GammaX is an order book-based decentralized derivatives exchange with an on-chain transaction settlement layer and an off-chain order book and matching engine to provide the best user experience. And to ensure Ethereum compatibility at a low cost, we’re partnering with StarkWare’s Layer 2 scaling solution.