THE SOLUTIONS PRESENTED BY DEGO PLATFORM TO ENHANCE THE DEFI SYSTEM

flezy (40)in #dego • 4 years ago

I always believed that, for a project whether in the crypto space or not to stand out, there is a need for it to always present amazing products and services. Not only that but also coming up with good solutions which will solve current issues or enhance current existing systems, products and services. Without a project offering these, sooner than later, the project will come crumbling and then becomes obsolete. Sadly, this has been the fate of many projects in the world, which is also why there is every tendency for two projects which started development at the same time, where one will be growing massively the other will be struggling.

Nevertheless, when the crypto space is mentioned the first thing that always comes to the mind of most people is Bitcoin, that's true because Bitcoin is the first cryptocurrency as well as the first blockchain, but however in the crypto space today, there has been a massive record of cryptocurrencies and one of such is DEGO. DEGO is one of such cryptocurrencies which aims to bring about change as well as solutions to the DeFi system.

CURRENT DEFI SYSTEMS AND PROBLEMS

The Current Nature Of DeFi Systems
DeFi (Decentralized Finance) is commonly a set of smart contracts running independently on blockchains networks such as the Ethereum network. These smart contracts are built solid thus may or may not interact with other smart contracts and even other blockchains.

Also, as everything built has goals and objectives, that of DeFi is to enhance profitability for investors in DeFi systems through automated smart contracts which seek to maximize yields for the funds invested. In addition to this, with the idea DeFi presented, it is marked by rapid innovative growth and testing of these ideas and concepts.
Another aspect of Defi projects is Yield Farming. This Yield Farming concept has recently been the focus of interest and investment for many people in the crypto community, thus setting up an entirely new era for DeFi via liquidity mining.

Problems
Nevertheless, the current DeFi system often involves high risk investing which has proven to involve smart contracts sometimes, that is, smart contracts that have not been audited or even thoroughly reviewed, that is lacking a comprehensive review as an audit. Hence, due to this audit issue and other reasons (high fees etc), DeFi is most of the times considered to be riskier than traditional investing or centralized finance.

Like earlier stated, another aspect of Defi is Yield Farming, but however, under this particular model, those who hodl (hold) large amount of funds commonly called whales seems to become the top winners always. This is because they can easily take away a big chunk of all liquidity rewards and thus turning to sell out their yield. Therefore, without being told, it can be seen that the investors with little funds are left with little to nothing.

THE SOLUTION PRESENTED BY DEGO

Amidst all the issues in DeFi systems, but not forgetting the advantage of DeFi, the team behind DEGO believes something can be done to solve these problems.

Owing to the fact DEGO believes everything would be different, the team adopted a modular design. Modular design or Modularity, points to the combination of various elements, factors, features or settings of the product to form a subsystem running with specific functions. DEGO combines these subsystems as a universal module with other modules therefore creating a new system having multiple efficient functions and high performances.
In addition, DEGO makes it possible for each product to be regarded as a module, thus after a combination of different modules, a new product comes out.

Another solution presented by DEGO is known as LEGO or LEGO bricks. These LEGO bricks are the best example and motivating factor for the modules within DEGO. They are developed in such a way that every brick is plain and ordinary while leading to or generating a high possibility of achieving a lot when they are brought together.

The DEGO team also presented another solution such that DEGO equals to LEGO in the DeFi world. That is, with each DeFi protocol being regarded as a brick, such as in the case of Stable Coin (DAI), Lending (Aave, Compound), DEX (Uniswap and Balancer), Derivatives (Synthetix), Insurance (Nexus Mutual), the team ends up developing a new dApp (Decentralized Application) that will;
a. Perfectly enhance the value of DeFi,
b. Create diversified investment portfolios,
c. Generate substantial financial returns for users or investors.

With all these in place, DEGO platform will usher a new future of financial services based on blockchain technology.

As for Yield Farming, the team believes that, in order to move towards a more sustainable ecosystem of DeFi which will make all investors equal, there is need to create a Liquidity Mining with algorithmic adjustment or adjuster.
Thus, DEGO uses these sets of deterministic algorithms for liquidity mining, hence converting the LP or Liquidity Pool token staked by users into POWER or hashrate if talking about mining, therefore getting earnings through them.

One can wonder what manner of a team is the DEGO platform made up of, to come up with such an idea.
The DEGO team members are from different backgrounds and settings across the world, having common interest, values and vision, thus having the idea to create a decentralized platform as well as achieving openness and transparency. Talking about openness and transparency, when it comes to the decision-making process, the team elects 5 representatives to jumpstart the operation of DEGO project.

CONCLUSION

DEGO is the ticker of the token in DEGO platform, in addition to being an ERC 20 token, it is also a governance token for the sustainable Decentralized Finance (DeFi) ecosystem with a total supply of 21,000,000. As DEGO is an ERC 20 token, that also means, it is based on the Ethereum blockchain.
To show that the DEGO system is different, the team will set the Governance permissions of each smart contract as a multi-signature wallet, and will only make adjustments and decisions if 3 votes out of 5 representatives on one proposal are achieved.

Additionally, after the successful launching of the project, the community have the power to re-elect the co-holders of the multi-signature wallet through the mechanism of the proposal and/or voting. This power found in the community is owing to the fact that DEGO DAO is designed to be run by community members in a clear and transparent manner.

Furthermore, In DEGO platform, NFT (Non-fungible token) can be claimed and depending on what was claimed, it can be traded on various exchanges like Hoo exchange, opensea etc.