Decentralized Finance (DeFi) Development empowers the Fintech arena on the whole. How so? You may be surprised! The most spoken Decentralized Finance can be mentioned as a combination of financial services in Decentralized environment. The Smart contracts integrated DApps makes the DeFi system one of the most transparent, secured, trustworthy and efficient system.
We, Pulsehyip one of the most experienced DApp and Smart Contract Development Company is now ready to extend its services in the FinTech sector by providing solutions for Decentralized Finance Development.
Our experts help in creating Industry-specific Financial applications such as DeFi Protocols and DeFi Tokens. Also our expertise in the Smart contract Development make sure that all the existing vulnerabilities in straightened up to produce a seamless user experience.
Book a free demo from our experts and start with your DeFi project!
We cover DeFi Development services for Lending and Borrowing, Insurance, Stable coins, Asset Tokenization, Asset Tokenization, Synthetic Assets Creation, DEX Trading, Asset Management and Derivative Protocols.
Before getting into the details of the services that we provide, let’s clear the air about DeFi and how it can change the financial system.
Decentralized Finance (DeFi) can be said as an advancement in the traditional bank services because of the inclusion of Decentralized technologies called the Blockchain. DeFi can also be called as the Open Finance because of its inclusive format.
Presently, it is to be noted that the DeFi community is trying to provide alternate solutions for every existing financial service. The major services that is focused include savings, checking accounts, loans, asset trading, insurance etc.
DeFi can be simple explained as the shift from the centralized Financial systems to peer to peer finance with Blockchain technology build on Ethereum Network. The Decentralized finance has emerged as an active sector in the Blockchain space with various use cases for individuals, developers and financial institutions.
The existing traditional financial system involves tedious processes due to which there is a need for a New Financial system named DeFi- Decentralized Finance. It eliminates any intermediates involved in the financial processes.
Immutability- No changes can be done once a process is carried out
Highly programmable- Involves computerized codes
Ultra transparency- Involves open source permissionless blockchain network.
Decentralized process- Absence of involvement of any central entity.
Permissionless- Does not require KYC, Credit scores etc.
Borderless- Any one having access to internet can get involved in Decentralized Finance.
Security- Assets and all the DeFi platforms are unhackable.
Finally, it includes self custody and Interoperability.
Use Cases of DeFi
Below are the list of use cased of Decentralized Finance.
Borrowing and Lending
In the DeFi system the peer to peer Borrowing and Lending is most widely used as it allows the users to take up loan without any applications review. In some of the DeFi DApps, the Smart contract itself acts as a lender and the interest will be calculated based on supply and demand.
The user will be the soul custodian of her/his own crypto assets. One can easily interact with Decentralized applications for buying, selling and transferring the cryptos in the crypto wallets such as Meta Mask.
The Ethereum based games has become more popular recently and the use of DeFi protocols directly in the Gaming DApps has made it more approachable. Eg- PoolTogether
This provides solution to the data privacy of personal information along with open access. User with the interent can access to the information from anywhere around the world.
The involvement of DeFi in the Insurance assist the users in buying coversage and protecting their holding.Eg- Nexus Mutual
The DeFi involves Decentralized predictive markets, insurance and on-chain that is fully automated. For Eg- Augur- a betting platform with prediction markets.
The Stablecoins has now found a significant place in the DeFi system for lending, borrowing, remittance payments and also for institutional applications like Central Bank Digital Currency. It was initially developed to to decrease the price volatility of Cryptocurrency and to make blockchain a user safe payment method.
These are the crypto assets that offers exposure to other assets like gold, cryptos and fiats. These synthetic assets are collateralized by tokens which are locked into Ethereum based smart contracts which comprise of built in agreements and incentives. Eg- Synthetix
As we know that the Decentralized Exchanges involve peer to peer transactions of funds without a central authority. The Assets are not in the custody of exchange platform because of which the risks such as hacking, price manipulation an thefts are reduced. G- Uniswap, Liquality etc.
Tokens are assets issued on a blockchain network that proposes security and instant transfer of funds. These tokens are like fuel to the network, helps in reducing the transaction fees while using them and also unlocks various other economic possibilities.
Top DeFi Project in 2020
Uniswap- Its one of the major DeFi Projects that’s in its fastest growth phase. It stores massive amount of Ethereum tokens. The DEX protocol Uniswap is is presently the most dominant trading platform. It has eclipsed other DEX contenders with over 71.9% of the aggregate dex trade volume globally. Also Uniswap has dominated over other DeFi economy by 18% with over $1.3 billion total-value locked at its heights.
FalconSwap- It’s a layer-2 scaling solution built on Uniswap. It is further extendable to aggregate other DeFi platforms also. This platform overcomes the drawbacks of Uniswap saw low Transaction speed, less privacy, high Transaction fees, Bad user Interface. It is also to be noted that, it has joined hands along with DEXTools to improvise the working process. FalconSwap solves the gas and slippage issue by following a method of aggregation of orders before sending them to underlying liquidity pools.
Yearn Finance- Its an ecosystem of protocols that aims to simplify the user interaction with popular DeFi protocols and maximize the annual percentage yields of cryptocurrencies deposited into DeFi. It moves the user funds automatically between the DeFi lending protocols such as Compound, Aave, and Dydx to maximize APY.
Challenges in Real-Life Application of DeFi
Availability of Fiat on/off ramps
Lack of Identity
Lack of Privacy
Smart contract vulnerability
Here are the list of popular open-source DeFi protocols that are currently existing
For Lending purpose
Aave- Its an Open Source and Non-Custodial DeFi protocol to earn interest on deposits and borrow assets.
Compound- Its run on Ethereum Blockchain and it allows the users to lend and borrow the assets based on the collaterals.
Maker- Its a credit platform that supports DAI which is a stablecoin and is pegged to USD
For trading purpose
Uniswap- Uniswamp is a decentralized On chain protocol run on Ethereum network. It is designed for token exchanges on Ethereum which uses liquidity pools.
Tokenlon- It’s a decentralized exchange that supports off chain matching and on-chain settlement. (Here the on and off chain refers to Blockchain)
Augur- This is also a Decentralized Exchange along with Tokenlon that supports off-chain matching and on-chain settlement.
My crypto- Its an app that help the user to create, import and manage all the wallets.
My Ether Wallet- Its an easy to use open source interface that helps to interact with Ethereum platform.
DEXWallet-.Allows borrowing, lending, Exchange and Native in wallet Staking for users. It a DeFi mobile wallet.
Importance of StableCoins in DeFi
The Decentralized Finance Applications or DeFi application aim to democratize and disintermediate financial systems through the introduction of Decentralized layer. Alongside its usage for payments, the other use case of DeFi applications include stablecoins.
Stablecoin- Stablecoin provide price stability character, that makes it suitable for monetary functions such as medium of exchange, unit of account and value added asset.
Top DeFi Stablecoin Projects
Here are the list of Successful DeFi StableCoins projects-
MakerDAO- Its a Decentrlaized autonomous organization which is operated in Ethereum Network. The platform aims to bring stability to digital assets using the dual coin system, Maker (MKR) and Dai (DAI). MKR is not pegged to any specific price and DAI has a fixed price of 1 DAI = $1.
The advantage of DAI include security, transparency, liquidity, stability and trust. It has provided the DeFi community a level of boosting confidence in stablecoins and Maker protocols
USD Coin- The USDC is a stablecoin that was founded by CENTRE which is an open source project bootstrapped by the cryptocurrency exchanges. It’s a Ethereum based token with 1USDC equaling $1. CENTRE ensures that there is $1 for every USDC minted.
This model is known as IOU Issuance Model. The issued token represent the claim to the asset that’s stored in bank account or vault.
Tether- Its a token that’s backed with asset, it intends to serve as a gateway between fiat and cryptocurrencies. Each of the Tether has a value that equal to a single US dollar.
The other examples of DeFi StableCoins include Reserve (RSV), True USD (TUSD), Libra coin and more.
DeFi and its Future
The concept of DeFi is in the initial stage, but many existing DeFi protocols have proved to be promising. The Defi aims to provide a completely Decentralized Finance Environment without any involvement off third parties.
There is a prediction that the DeFi will be adopted widely by the Fintech companies, banks, government etc. There will be more demand The implementation of DeFi will make ensure the development of the effortless and open financial system.
The Decentralized Finance Solutions from the Defi Development company involves the development of DApps and smart contract that empowers the financial system with high transparency and security.
We, Pulsehyip provide Blockchain solutions for all types of industries. In addition to the various blockchain solutions that we provide, we also provide Decentralized Finance Solutions. We have extended our services in providing decentralized finance (DeFi ) solutions across all borders with complete consideration of the client requirements.
Our existing services include-
At present the DeFi Yield Farming has become a sensation. Its been noted that adoption of Yield farming is at its height these days. We at Pulsehyip, can help you create a system based on the concept of Yield Farming.
What is Yield Farming?
Yield Farming is a way to yield more returns for staking up cryptocurrencies or Digital assets. It’s a very new concept and it has risen from the Decentralized Finance sector. The actual idea is that the individuals can earn more tokens in crypto exchange for their usage of DeFi apps. This is called called as liquidity mining.
Here are the list of DeFi Solutions that we provide in order to help you create your own DeFi system.
DeFi Lending Platform Development- We help you launch Lending platforms based on open source DeFi protocols to provide easy and fast lending of funds.
DeFi Borrowing Platform Development- We also provide DeFi borrowing platform development services which can help the users avail easy loans.
DeFi Smart contract Development- Our adroit Developer help in developing DeFi smart contracts free from the vulnerability along with high solidity and encryptions.
DeFi Smart Contract Auditing- In order to fix all the errors and bugs we provide seamless auditing services for your DeFi smart contracts.
DeFi DApp Development- As a DApp development company we have carried out extensive Dapp development services to our clients. Now, we extend it to DeFi based Development that provide more transparency and security
DeFi based DEX platform Development- We also provide services in building decentralized exchanges by utilizing open source DeFi protocols.
DeFi Wallet Development- We now create Cryptocurrency wallets. We create cryptocurrency wallets with high security open source DeFi protocols. This will let the users store the private keys that will guarantee the asset security.
DeFi Token Development- Our experts help in creating token to reach out your Defi project to many.
DeFi Stablecoin Development- We help you launch a stablecoin with more liquidity and stability.
DeFi for Insurance- We, Pulsehyip also provide smart contract DApps and a unique platform developed to carry out the insurance processes.
We Pulsehyip, have more than +4 experience in Blockchain Development and we remain the Best DApp development and service providers until now. We have 150+ top blockchain Developers who are very well acquainted with Blockchain Development. Utmost importance is given to the requirement of our clients. So, begin with the DeFi based business protocol sooner with our help.