Democratizing Finance.

I'm not from finance background but due to the overlapping nature of blockchain, cryptocurrency and token economics 'tokenomics', there is a need for me to seek an understanding in this field. What I know is only the surface and do pardonme for that.

The subject isn't just entitled to blockchain but includes traditional financing. Ultimately, enables a way to adequately fund activities for the cause of nation building, philanthropy or in more laymen words 'make the world goes round', so to speak.

My last post was explaining the probability of this year focus would be on stablecoins. And that brought my attention to MakerDAO DAI. This link explains it quite well, https://hackernoon.com/whats-makerdao-and-what-s-going-on-with-it-explained-with-pictures-f7ebf774e9c2

The article explains how DAI is generated, but you too can buy DAI in open markets or through decentralize exchanges (DEX) like Bancor or Kyber.

What can I do with DAI? Those who generated DAI using CDP can compound their wager by buying more ETH. Some wants to stabilize (less volatile) their position can use DAI as alternative to USDT, USDC, TUSD, PAX or Gemini USD. What else can we do with holding DAI? This brings me to the subject of this post, put into a 'bank'. Not the actual bank but a facility that acts like one with minimal to no barrier of entry.

I've been using three recently; 1)Celsius.network 2) https://compound.finance/ and 3)
https://nexo.io/earn-interest . Unfortunately, at the time of writing this, NEXO has not yet enable DAI acceptance. Recently, Alex Mashinsky (founder of VoIP) been aggressively marketing Celsius to plenty. There was even a comparison article of Celsius vs Nexo

Celsius and Nexo both are quite similar as they use BitGO as custodian. In fact I find compound.finance to be most interesting of the lot. This is because they use smart contract on Ethereum to emulate deposit, lending and interest sharing. The downside is possibility of contract code being hacked or fails, therefore I don't recommend to put your life savings. (Experiment)

Having witness these three (3) examples, I'm convinced the next wave rise & appreciation will be this. In fact, another generation of young entering the work force with different mindset will propel the adoption rate pass 100 million.

To top this off, the brutally straight shooter Richard Heart shilling his BitcoinHEX - high interest for Bitcoin holders. Airdropping with a twist, relying on the current account holders to bootstrap adoption mass. Check that out if you're interested but I'm still 'blur' of his idea.

Has been awhile since my last post as I was researching for material, with a day job to feed the kids and age. Furthermore before I draft them, will need certain degree of comprehension by literally trying these instruments myself. DAI interest been rising as the demand is higher than supply as the stability fee is the highest since inception. Do check them out or drop me a question in the comments, I'll be glad to reply. Coming up next I'll write about my experience with each facilities.

Oh by the way, at the moment the market rise is not a bull run yet, as according to many seasoned analysts claimed.

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Posted from my blog with SteemPress : http://joebabana.vornix.blog/2019/04/12/democratizing-finance/

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