2021 — An Ox-picious Year for DeFi 2021年-DeFi吉祥的一年

Over the past few decades , we’ve seen poor decision making by centralised financial institutions and governance brought the world’s economy to its knees in the most major financial crisis. DeFi is the world’s answer to the financial crisis.

The concept of DeFi based on blockchain technology was designed to ensure financial transactions would be transparent and controlled by participants within the network and not by a selective group of individuals.

The macroeconomic trends of low and even negative interest rates globally will mean that DeFi will be increasingly relevant to people. While DeFi is still in its nascent phase, certain growing signs are indicating that it’s beginning to enter a phase of maturation.

DeFi has a lot of potential to make common financial processes like lending, borrowing, and earning interest more accessible to emerging markets. Most transaction volume and product development in 2021 will likely continue being centered around DeFi.

However, not many retail investors or users are comfortable with DeFi due to platform accessibility and barrier to entry for blockchain infrastructures.

If DeFi can build a comprehensive ecosystem and stake its claim in the realm of traditional finance or even coexist with traditional banking institutions for a more integrated and open financial ecosystem, this will further cement its essential role in the finance industry.

Bitcoin was created to form a decentralized and purely digital alternative to traditional money. Money, however, is only the simplest instrument within the modern financial armamentarium.

Crypto has had futures and options for some time, but only recently has it started developing its own versions of some of the more sophisticated structures in the traditional financial ecosystem. The DeFi sector has seen astounding growth recently. In early 2019, there was only $275 million of crypto collateral locked in the DeFi economy. By February 2020, it was $1 billion, and it eventually hit $4 billion by late July before reaching $41 billion in early 2021.

The majority of DeFi dApps (Decentralised Application) currently run on the Ethereum blockchain with Binance Smart Chain keeping up; this has greatly negatively impacted the cost and speed of Ethereum transactions, but these problems have, in turn, stimulated a flurry of creative development regarding layer 2 efficiency-oriented tools running on top of Ethereum, as well as alternative faster, cheaper, more scalable blockchains.

Projects such as Plutus Capital are building own proprietary blockchain that will be more scalable and sustainable as compared to Ethereum blockchain.

The ethos of the crypto and DeFi world has also recently leaked into the conventional finance arena, with the saga involving the traditional market drama; GameStop and WallStreetBets.

By this point, the question isn’t whether DeFi will become a major factor in the global economy, but rather how creatively it will be developed and to what extent it will emerge as a force for broad benefit.

One of the keys to guiding DeFi in a beneficial direction will be integrating advanced decentralized Artificial Intelligence (AI). So far, few DeFi projects have leveraged AI, but we may well see AI woven into the next burst of DeFi activity in 2021 — and maybe even in a way that enables DeFi to push startup decentralized tech projects forward much faster.

2020 also saw the emergence of “Meme DeFi” in the form of food-themed projects like SushiSwap, PancakeSwap, BurgerSwap, BakerySwap, YAM and more. Of course, traditional finance has also seen its share of dubious schemes, though generally with less creative names.

One of the revolutionary aspects behind the scenes of modern DeFi is its “noncustodial” nature. Noncustodial smart contracts eliminate the intermediary from complex multiparty transactions, using code that temporarily locks certain tokens until certain conditions are met — without the tokens needing to move from their owner’s crypto wallet to somebody else’s. These contracts frequently rely on decentralized, noncustodial crypto exchanges like UniSwap, which are relatively new but steadily grabbing market share from centralized exchanges such as Binance, OkEx, Bittrex and so forth.

The fully automated nature of DeFi protocols enables financial instruments not seen in the traditional, centralized financial sector. One such example is ‘flash loans,’ a unique form of loan that must be taken out and paid back within a single transaction. These loans allow a user to borrow funds, convert or trade them across different platforms using algorithms of their choice, and then pay back the amount borrowed, all in moments.

DeFi’s noncustodial aspect provides partial insulation from traditional financial regulations. But the European Commission plans to launch a comprehensive DeFi regulation scheme in 2022, which may provide some valuable legitimation to the sector while reducing the prevalence of pyramid schemes and such.

What, though, is the real importance of all this DeFi activity? Is it just about technical cool value, new toys for speculators to play with, and the provision of more sophisticated financial tools for those who prefer to keep their wealth outside the control of centralized authorities?

We at Plutus team believe that DeFi has the potential to be much more than this, but the key for it to achieve truly profound influence will be the extension of DeFi beyond Bitcoin and Ethereum to the broader scope of altcoins.

A significant percentage of the altcoins currently traded on crypto exchanges are utility tokens serving functions within innovative blockchain technology projects, across the gamut of vertical application domains. The market for altcoins has risen and fallen a few times, but generally, it lacks the liquidity and volume as compared to major cryptocurrencies such as Bitcoin and Ethereum.

DeFi on lower-liquidity altcoins could provide the altcoin market with massively greater liquidity, decreasing the volatility and increasing the financing options for the associated technology projects. A healthier altcoin ecosystem would make the decentralized sphere far more attractive to early stage tech entrepreneurs, potentially shifting the global tech world away from centralized control and toward participatory democratic public-blockchain-based dynamics.

But lending, trading, prediction and market-making on lower liquidity altcoins is harder than doing these things for BTC and ETH, which is where AI must come to the rescue.

Complementarily, many other projects are using DeFi mechanisms to democratize market-making across the altcoin spectrum by allowing token-based projects to offer token rewards to market makers who provide liquidity for their tokens. The core mechanism behind PlutusSwap and many other current DeFi projects is “yield farming” — incentivizing token-holders for staking their Liquidity Provider (LP) tokens in a way that allows tokens to be lent out via rewarding them with a special yield token.

With just a little luck, 2021 may be the year DeFi begins shifting from food memecoins to AI-fueled systems designed to radically empower decentralized tech startups and those who hold their tokens.

Our team has been working on updates and development based on the latest market trends and we will announce on our socials as soon as development is completed. Stay tuned!

PlutusSwap

Governed by yPLT token holders, PlutusSwap is built by the Plutus Capital dev community. Other than earning rewards on PlutusSwap, yPLT token holders have the right to vote on proposals and decide on future development within our ecosystem. PlutusSwap believes that the key to unlocking economic equality, prosperity and financial freedom lies in developing strong Fintech use-cases on cutting-edge DLT. Most importantly, PlutusSwap is neither a chef nor food. PlutusSwap aspires to bank the unbanked, bringing fundamental financial rights to billions of individuals across the globe. We want to unbank the banked, stripping away the financial prison that many in the first world are enslaved to.

We, are the followers of the great god of wealth, Plutus.

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About Plutus Capital

Plutus Capital is backed by a FinTech system built on a public blockchain, where an individual can enforce greater control of his own funds. The Plutus blockchain and token rely on the tamper-proof nature of ledger as well as smart contract and validation to ensure all processes are safe and secure.

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在过去的几十年中,我们看到集中式金融机构的糟糕决策和治理使世界经济在最严重的金融危机中屈服。 DeFi是全球应对金融危机的解决方案。
基于区块链技术的DeFi概念旨在确保金融交易是透明的,并由网络内的参与者而不是由选择性的个人控制。

全球低利率甚至负利率的宏观经济趋势将意味着DeFi将与人们越来越息息相关。尽管DeFi仍处于新生阶段,但某些增长迹象表明它已开始进入成熟阶段。

DeFi有很大的潜力使新兴市场更容易利用诸如借贷,借贷和赚取利息等通用财务流程。 2021年大多数交易量和产品开发将可能继续围绕DeFi。
然而,由于平台的可访问性和区块链基础架构的进入障碍,很少有零售投资者或用户对DeFi感到满意。

如果DeFi可以建立一个全面的生态系统,并在传统金融领域中占有一席之地,甚至可以与传统银行机构共存,以建立一个更加集成和开放的金融生态系统,那么这将进一步巩固其在金融行业中的重要作用。
创建比特币是为了形成传统货币的去中心化和纯数字替代方案。但是,金钱只是现代金融武器库中最简单的工具。

加密货币拥有期货和期权已有一段时间了,但是直到最近才开始开发自己的传统金融生态系统中一些更复杂结构的版本。最近,DeFi部门取得了惊人的增长。在2019年初,DeFi经济中只有2.75亿美元的加密抵押品被锁定。到2020年2月,这一数字为10亿美元,到7月底最终达到40亿美元,然后在2021年初达到410亿美元。

目前,大多数DeFi dApp(去中心化应用程序)都在以太坊区块链上运行,并且Binance Smart Chain保持同步。这极大地影响了以太坊交易的成本和速度,但这些问题反过来刺激了人们对以太坊之上运行的第2层以效率为导向的工具以及更快,更便宜,可扩展性更高的替代品的大量创意开发。

Plutus Capital之类的项目正在构建自己的专有区块链,与以太坊区块链相比,它将更具可扩展性和可持续性。
加密货币和DeFi世界的精神最近也渗透到了传统的金融领域,其传奇故事涉及传统的市场戏剧。 GameStop和WallStreetBets。

至此,问题不在于DeFi是否会成为全球经济的主要因素,而在于它将如何创造性地发展以及在多大程度上会成为广泛受益的力量。

指导DeFi朝着有利方向发展的关键之一将是集成先进的分散式人工智能(AI)。到目前为止,很少有DeFi项目利用AI,但我们很可能会看到AI融入2021年的下一波DeFi活动中,甚至可以使DeFi更快地推动新兴的分散式技术项目前进。

2020年还出现了以食品为主题的项目“ Meme DeFi”,例如SushiSwap,PancakeSwap,BurgerSwap,BakerySwap,YAM等。当然,传统金融在可疑计划中也占有一席之地,尽管通常名称较少。

现代DeFi幕后的革命性方面之一是其“非拘禁”性质。非监管智能合约使用临时锁定某些令牌直到满足特定条件的代码消除了复杂的多方交易中的中介,而无需将令牌从其所有者的加密钱包转移到其他人的令牌。这些合同经常依赖于分散化的,非托管的加密货币交易所,例如UniSwap,这是相对较新的但从诸如Binance,OkEx,Bittrex等集中式交易所中稳步抢占的市场份额。
DeFi协议的完全自动化性质使金融工具无法在传统的集中式金融部门中看到。

这样的例子就是“快速贷款”,这是一种独特的贷款形式,必须在一次交易中取出并还清。这些贷款允许用户借用自己选择的算法来借入资金,在不同平台之间进行转换或交易,然后随时偿还借入的金额。

DeFi的非拘禁方面与传统的金融法规部分隔离。但是,欧盟委员会计划在2022年启动一项全面的DeFi监管计划,这可能为该行业提供一些有价值的合法性,同时减少金字塔计划等的普遍性。

但是,所有这些DeFi活动的真正重要性是什么?仅仅是技术上的超值,供投机者使用的新玩具,以及为那些希望将自己的财富保持在中央政府控制范围之外的人们提供更复杂的金融工具吗?

我们Plutus团队的人相信DeFi的潜力远不止于此,但实现真正深远影响的关键将是DeFi的扩展,从比特币和以太坊扩展到更广泛的代替币。

当前在加密货币交易所交易的代替币中有很大一部分是效用令牌,它在整个垂直应用程序域中为创新的区块链技术项目中的功能提供服务。山寨币的市场曾经历过几次涨跌,但总体而言,与主要的加密货币(如比特币和以太坊)相比,它缺乏流动性和交易量。

流动性较低的代替币的DeFi可以为代替币市场提供更大的流动性,减少波动性并增加相关技术项目的融资选择。更健康的代替币生态系统将使分散的领域对早期的科技企业家更具吸引力,从而有可能使全球科技世界从集中控制转变为基于参与式民主公共区块链的动力。

但是,对流通量较低的代替币进行借贷,交易,预测和做市要比为BTC和ETH做这些事情更困难,而这正是AI必须拯救的地方。

作为补充,许多其他项目正在使用DeFi机制,通过允许基于令牌的项目向为其令牌提供流动性的做市商提供令牌奖励,从而在整个山寨币范围内使做市民主化。 PlutusSwap和其他许多当前的DeFi项目背后的核心机制是“收益农业”-激励令牌持有者抵押其流通量提供者(LP)令牌,使令牌可以通过奖励特殊收益令牌而借出。

幸运的是,DeFi可能会在2021年开始从食品memecoins转变为AI驱动的系统,旨在从根本上授权去中心化的科技创业公司和持有代币的公司。
我们的团队一直在根据最新的市场趋势进行更新和开发,一旦开发完成,我们将在社交媒体上宣布。敬请关注!

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As devoted followers of the god of wealth, Plutus, we are here to disrupt the egregious abuse of financial rights by distributing wealth to the mass with $yPLT.

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PlutusSwap

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As devoted followers of the god of wealth, Plutus, we are here to disrupt the egregious abuse of financial rights by distributing wealth to the mass with $yPLT.

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