DeFi Exchange Platform Like Bakeryswap on BSC

DX Business Group is a pioneer in Swap Exchange Development, with a team of versatile and agile developers eager to provide you with the finest experience possible. We create a world-class exchange platform that is coupled with an effective Automated Market Maker mechanism in the digital market. Allowing users to trade against liquidity pools can reduce time and eliminate the need for order books. Join us in creating your own Native Tokens, which will be utilized on exchange platforms to trade cryptocurrencies. You can create your own swap exchange with additional features using our great bitcoin exchange development services.

Develop your decentralized exchange platform like pancakeswap

Choose from Bancor, Pancakeswap, Uniswap, Sushiswap, and Curve depending on your needs if you want to turn your financial troubles into a balanced stage with our white label swap exchange development services. Instead of starting from scratch, which takes a lot of time and effort, use one of our ready-made solutions to launch your business as a white label with few changes.

Why A Swap Exchange Development?

Currently, several countries have legally begun to allow cryptocurrency transactions, and a few have agreed to use their preferred cryptocurrency as their national currency for economic growth. Many people neglected blockchain as a means of business administration during the time of its failure, but the use of bitcoin has now strengthened the Blockchain network. As a result, Bitcoin has become an important aspect of the digital world, which will continue to develop as Artificial Intelligence advances.

Reasons To Start A Swap Exchange:

• Many advantages elements provided by the cryptocurrency sector have attracted investors and entrepreneurs, prompting them to develop something to deal with cryptos in their businesses.

• As a result of the massive bitcoin usage, various decentralized exchange platforms have evolved to suit the needs of entrepreneurs and startups for revenue generation.

• Decentralized Finance systems are becoming increasingly popular as a result of their novel financial management philosophy.

• Popular swap exchanges such as Pancakeswap, Sushiswap, Curve, Bancor, and Uniswap have influenced the crypto audience to consider creating their own swap exchange platform due to the benefits it provides to company owners.

Benefits of a Swap Exchange Development Platform:

DX Business Group will supply you with a fully functional and trouble-free white label swap exchange development platform that is designed specifically for investors and entrepreneurs as a market-ready solution with several features and benefits.

Tracking Transactions – Our Swap Exchange software allows you to track and analyze transactions in real-time, which aids in market analysis.

Efficient Swapping – With the support of liquidity pools, you can effortlessly swap your Cryptos for others with a similar value.

Staking – Earn big rewards in your account by participating in a staking system that will help users earn more money in the future.

Secure Wallet – Our swap exchange development platform is highly secure in order to give customers a hassle-free environment for wallet transactions.
Flexi – Pay – To ensure a smooth transaction process, we’ve included a flexible payment gateway for consumers to enjoy.

Don’t wait to start your White Label Exchange Platform Development with us since we offer the best crypto exchange platform development solutions to keep up with the latest coin developments.

You can build your own white label swap exchange platforms using various blockchain technologies, such as Pancakeswap, Uniswap, and Sushiswap, with all of the main capabilities, incorporated. With all of the resources available to you to create and launch your own White Label Swap Exchange Platform.

Famous Swap Exchange Platforms:

PancakeSwap- It is a decentralized crypto exchange platform that trades cryptocurrencies and is based on the Binance Smart Chain. This platform makes use of its fundamental features, obviating the need for order books and incorporating an AMM mechanism. This technique enables users to place buy/sell orders with other LP members.
If you want to create DeFi Exchange Like Pancakeswap, Just click and explore Develop your decentralized exchange platform like pancakeswap

Sushiswap- is a new Decentralized Swap Exchange based on the Ethereum Blockchain network, featuring key functionality similar to Pancakeswap and Uniswap. Even while it has several characteristics in common with its competitors, it has some advantages, such as yield farming, providing effective LPs for the liquidity pool, and upgrades for token holders.

Uniswap- is one of a kind in that it uses a method called “Constant Product Market Maker” to fix pre-determined pricing based on asset quantity availability. It is based on the Ethereum Blockchain, just like Sushiswap, to trade cryptocurrencies with the same functionalities as other swap exchanges, such as the Automated Market Maker.

How DX Business Group Software Solutions Help Your Business with Our Swap Exchange Development?

With our unique team of specialists, DX Business Group has been acknowledged and named as the top-notch Blockchain Application Development Company. We provide you with the ideal atmosphere for turning your ideas into an application that displays your achievement in achieving your goals. Prepare to launch a powerful Whitelabel Swap Exchange Platform on Ethereum, Tron, Binance Smart Chain, and other blockchain platforms.

With some of our unique features, DX Business Group gives the greatest service for our White Label Swap Exchange Development.

• Multi-Level Security
• Amazing UI
• Instant Deployment
• Cross-Chain compatibility.

In a word, we guarantee that with our support and direction, we will offer you additional development experience to help you take your business to the next level.

The post Develop and launch your swap exchange platform to elevate your business appeared first on DX Business Group Software Solutions - Blog.

A decentralized exchange (DEX) is a partly automated cryptocurrency exchange network where customers’ personal records, account balances, portfolio allocations, and fund positions are never held by a third entity. In other words, there are no servers operated from a central location, removing a single point of failure. Trading any cryptocurrency on a decentralized exchange is uncommon because it avoids the limitations of centralized platforms. They allow users to buy and sell cryptocurrencies directly from one another, eliminating the need for a middleman.

Until users may begin trading on a decentralized cryptocurrency platform, they must first create an account. However, after they’ve completed the account creation process, they will almost automatically list cryptocurrencies to sell or purchase from others.

A blockchain network is usually used for the most popular Decentralized exchange. With blockchain’s growing usefulness, the world is heading toward a trustless economy, eliminating the need for a middleman to share goods and services. The blockchain group recognizes the dangers of cryptocurrency dealing and uses Decentralized Exchanges to improve the trading experience. The key concept here is that traders should keep control of their funds.

Decentralized Exchange Script

Since centralized exchanges struggled to resolve any pressing problems, decentralized trading networks arose. Decentralized exchanges allowed true peer-to-peer transfers, removing the need for third-party intervention and institutionalized (centralized) regulation. This app allows you to transfer money electronically without having to worry about centralized power. DEX allows for trading between two related cryptocurrencies and is tightly controlled by Smart contract triggers.

Our team of experts has been delivering exclusive DEX tools to assist businesses and startups in trading more effectively and safely. Our in-depth knowledge of the topic qualifies us to create decentralized exchange networks that are highly scalable, efficient, and safe.

How does Decentralized Exchange work?

The program that drives a P2P decentralized exchange is entirely reliant on it. Cryptography verifies all transactions in a decentralized platform, without the need for a third-party intermediary.

A decentralized market, in general, is a network that allows both buyers and sellers to perform transactions. For example, if someone wants to purchase or sell something on the market, they will deposit money and use it to swap crypto coins with sellers in the future. This allows for a direct customer-merchant relationship without the need for a centralized government authority. The elimination of the requirement for an agent resulted in considerably lower payments. As a result, DEX is gaining in popularity as more people become interested in learning more about this fresh and exciting idea.

Advantages of Decentralized Exchange:

1. No single point of failure: Centralized markets act as the legitimate custodians for each trade, which are all held on centralized servers. As a result, centralized exchanges have been a very appealing option for hackers. Decentralized markets, on the other hand, operate on a public ledger and thus avoid the risks associated with centralized exchanges. keep their users’ money and personal information secure

2. No single point of control: There is no way for someone to “take control” of the trading system/funds in a decentralized exchange, making it far more vulnerable to censorship, political intervention, and power games.

3. Secure: Another significant benefit of DEX is that it is spread worldwide, reducing the chance of server downtime and hacking.

4. Low Fees: When compared to centralized markets, trading rates on decentralized exchange sites are considerably lower. Some DEXs, on the other hand, are also free. Just the burden of transmitting transfers over the blockchain is borne by the consumers.

5. Government-Resistant: Since DEXs are open-source programs that run on a public network, it is incredibly difficult for any government to regulate them. Since no authority has the ability to close down the laws that control decentralized exchanges.

6. Trustlessness: The most significant benefit of a DEX is its “trustless” existence, which allows for an over-centralized exchange. In a centralized structure, the whole system requires confidence. When it comes to DEXs, there’s no reason to trust the business behind the decentralized because everything is done in a straightforward and automatic environment.

7. Privacy: In a centralized exchange, the privacy features offered by decentralized exchanges are becoming extremely scarce. Trading on DEXs does not require personal information, unlike centralized markets, which require KYC procedures.

The post How to build a decentralized cryptocurrency exchange (DEX) platform? appeared first on DX Business Group Software Solutions - Blog.

In recent years we’ve been witnessing how the previously unknown and mysterious crypto space has shaped almost every aspect of our lives and caused a shift in our mindsets. Those who used to perceive bitcoin as a come-and-go trend now seem to be bitterly regretting not buying it earlier. On the other hand, those luckies who managed to buy bitcoin at a reasonable price are anxiously waiting for its value to go up every single day.

However, crypto space is not only about bitcoin. New multiple strategies and techniques have appeared within the decentralized finance (DeFi) infrastructure aimed at providing users with more opportunities to generate larger incomes. Currently, one of the hottest crypto trends is yield farming, which seems to have taken DeFi by storm.

Yield farming is about lending your funds to others with the help of ingenious computer programs called smart contracts. As a result, you earn fees in the form of cryptocurrency in exchange for your services. Sounds simple enough, right? But let’s not rush — there are a lot of pitfalls and complexities that you might encounter during the process. That’s why it’s important to ensure you have enough background knowledge before you get started.

Read this article to discover all the ins and outs of yield farming, how it differs from other crypto strategies, and how to farm cryptocurrency correctly.

What is yield farming?

Yield farming is one of the latest trends that has rapidly forced its way into the decentralized finance (DeFi) world. It’s viewed as an effective strategy that investors turn to when they want to increase their profits. According to CoinMarketCap data, the total locked value of liquidity pools in yield farming projects exceeded $13 billion as of 10th March 2021 (note that the statistics are constantly updated).

Thanks to yield farming, crypto holders can lock up their holdings in return for rewards in the form of additional cryptocurrency. To be more specific, this process allows investors to earn fixed or variable interest by investing cryptocurrency in a DeFi market.

Nowadays almost all yield farming transactions are carried out within the Ethereum ecosystem and its ERC-20 standard, as the rewards usually belong to the Ethereum ecosystem too. However, it’s expected that cross-chain advancements will soon allow DeFi apps to run on other blockchains, as the demand in yield farming is constantly increasing.

How does yield farming work?

First of all, it’s worth noting that to function, yield farming requires liquidity providers and liquidity pools.

To become a liquidity provider, all you have to do is to add your funds to a liquidity pool (smart contract), which is responsible for powering a marketplace where users carry out several procedures with their tokens, including borrowing, lending, and exchanging. Once you’ve locked up your funds in the pool, you’ll get fees that have been generated from the underlying DeFi platform or reward tokens. In addition, some protocols can even provide payouts in the form of multiple cryptocurrencies, allowing users to diversify their assets and lock those cryptocurrencies into other protocols in order to maximize yields.

As well as this, since professional yield farmers are knowledgeable about the Ethereum network and its technical aspects, they prefer to move their funds around various DeFi platforms with a view to getting the highest possible returns. This can prove to be a tall order. Those who provide liquidity receive rewards too, depending on the amount of liquidity provided — that’s why those who obtain the highest rewards possess the largest amounts of capital.

What should you remember?

Before getting into yield farming, make sure that you’re fully aware of the following basics:

• Liquidity providers deposit their funds into a liquidity pool.
• Deposited funds are stablecoins related to the USD such as DAI, USDC, USDT, etc.
• Your returns depend on how much you invest and what rules the protocol is based on.
• You’re able to create complex chains of investment once you decide to reinvest your reward tokens into other liquidity pools, which in turn offer various reward tokens.
• You should be aware that simply investing in ETH itself, for instance, isn’t considered to be yield farming. Lending out ETH on a decentralized non-custodial money market protocol and receiving rewards afterward — that’s yield farming.

What makes yield farming so popular?

It goes without saying that the key advantage of yield farming is that it can bring investors a good profit. As of today, yield farming has the capacity to provide more attractive interest rates than traditional banks, though there’s no denying that there are some potential risks too.

What’s more, 2020 witnessed a surreal upsurge in yield farming’s popularity. A huge amount of money was made via the Ethereum network, as yield farming platforms run on Ethereum and even DeFi tools tend to use the Ethereum platform too. In addition, yield farming grants benefits to various protocols, most of which are just nascent. When they have an active and growing base of enthusiasts, it’s much easier for them to draw stakeholders’ attention.

On the whole, yield farming is becoming immensely popular nowadays as it’s able to help a wide range of projects gain initial liquidity and is useful for lenders and borrowers. Yield farming also contributes enormously to greater efficiency when it comes to taking out loans.

What is DeFi and what role does it play?

DeFi stands for “decentralized finance”. The term is used to describe a variety of financial apps in the blockchain and/or cryptocurrency domain aimed to disrupt financial intermediaries. DeFi is often referred to as an unconventional financial system that functions independently, without relying on banks, insurance funds, or credit unions. It enables users to carry out various financial procedures with cryptocurrencies and other digital assets, including transferring, trading, investing, transacting via automated smart contracts, and so on.

DeFi runs on blockchain technology that will inevitably upend the existing financial order and contribute to a more transparent and secure financial system. As well as that, DeFi can boast another distinct feature — it’s able to expand blockchain capabilities to include more sophisticated financial use cases, like lending, derivatives, flash loans, and crypto yield farming.

Thanks to DeFi users are able to conduct trades and transactions whenever and wherever they wish. The only essential is a stable internet connection. Among the other substantial benefits of DeFi are blazing fast transfers and significantly reduced fees and charges. And not only that — DeFi lending protocols provide higher interest rates for deposits along with lower fees and more encouraging terms on loans as well as credit lines.

It’s also worth noting that DeFi grants equal and free access to financial services to a wider range of users who otherwise wouldn’t be able to participate due to lack of funds or political, social, and economic issues. Furthermore, DeFi allows for high yield trading — yield farming — that enables investors to borrow and lend their cryptocurrencies at considerably higher rates compared to traditional banking and investments.

Yield farming vs. other strategies

Those who’ve just entered the cryptocurrency world may not be able to differentiate yield farming from other concepts such as liquidity mining, crypto mining, and staking. Even though they all have something in common and may look the same, in reality, they differ from one another and follow totally different complex algorithms. We’re here to ensure that you won’t mix these concepts in the future and will be able to tell them apart.

Yield farming vs. liquidity mining

Sometimes yield farming can be confused with liquidity mining. Though they can be used interchangeably, differences do exist.

First, it’s necessary to clarify that both yield farming and liquidity mining operate on the DeFi sector that is able to increase returns on governance tokens. Yield farming uses several DeFi apps like fund leveraging, whereas liquidity mining operates on the Proof-of-Work (PoF) algorithm.

When dealing with liquidity mining, miners normally manage to earn a dividend swap equal to 0.3% as well as newly minted tokens once the transaction of each block has been successfully completed. In yield farming, though, liquidity providers resort to different DeFi platforms where they move their funds around in order to maximize yields. In addition, they can use DeFi mechanisms such as fund leveraging through both the borrowing and lending of stablecoins. As well as this, yield farmers can sometimes increase their gains by applying different strategies when moving their funds.

Yield farming vs. crypto mining

The key difference between crypto mining and yield farming is that the former runs on the Proof-of-Work consensus algorithm, while the latter is predicated on DeFi and heavily relies on the Ethereum network. In comparison with crypto mining, yield farming is viewed as an advanced way of earning rewards with crypto holdings via special permissionless liquidity protocols.

It’s also important to remember that both of them involve mining pools. However, liquidity providers belong to the yield farming process only.

Another fundamental difference between the two concepts lies in the fact that yield farming resembles the borrowing and lending plan that involves governance tokens, which enable you to yield rewards. As for crypto mining — it allows for the introduction of new coins and offers miners to earn their rewards by creating new blocks via verified transactions that occur in the mining pool.

Yield farming vs. staking

Staking chiefly operates on the Proof-of-Stake, or PoS, consensus mechanism, where a validator is responsible for creating a block via a random selection process and earning rewards that are paid by the platform’s investors. In this case, the higher the stake, the bigger the staking rewards. By contrast, yield farming enables token holders to generate passive income by locking their funds into a lending pool and earning interest in return.

What’s more, staking typically involves a more substantial amount of crypto in order to increase the chances of being chosen as the next block validator. And depending on how mature the coin is, it can take up to a few days to get the staking rewards.

Yield farmers, for their part, can move digital assets more efficiently and actively whenever they wish, with the purpose of earning new governance tokens or sometimes smaller transaction fees. Compared to staking, yield farming enables you to deposit different coins into liquidity pools across a number of protocols.

All things considered, yield farming is a more complicated process than staking, yet it brings a higher return rate.

As you can see, all the strategies outlined above may look the same, but each is based on its own unique complex algorithm.

Total Value Locked (TVL): what is it?

If you wish to assess the overall condition of the DeFi yield farming scene, then you should pay attention to Total Value Locked (TVL). This measures the amount of crypto locked in DeFi lending as well as other money marketplaces.

TVL is sometimes thought of as a smart and efficient way of aggregating liquidity in liquidity pools. It’s also a helpful indicator that reflects the state of the DeFi and yield farming worlds. What’s more, TVL is a powerful metric used to make comparisons between market shares of various DeFi protocols.

At DeFi Pulse you can track TVL and even take a look at the platforms with the biggest amount of ETH or other crypto assets that are locked in DeFi. Thanks to TVL you can easily get the most relevant information about the current state of yield farming. Normally, the more value that’s been locked, the better the crypto yield farming will get. In addition, you also have an opportunity to measure TVL in ETH, BTC, and USD. Each of them provides you with its own outlook for the state of the DeFi money markets, thus enabling you to assess the situation and help you make the right decision.

How to calculate yield farming returns

Estimating the returns from yield farming can be a bit complicated even in the short term because volatile fluctuations and intense competition create uncertainties. So, for instance, if one crypto yield farming strategy is too widely used, the returns will naturally decrease, and high returns can dry up.

But it’s still certainly possible to try and predict your returns. When you wish to calculate yield farming returns, you should use the most common metrics, which are Annual Percentage Rate (APR) and Annual Percentage Yield (APY).

Compared to APY, APR doesn’t involve compounding, which actually means that the calculation comprises simply multiplying the periodic interest rate with the number of periods within one year. The annual return rate is normally imposed on borrowers and is paid out to the capital investors. As far as APY is concerned, its return rate is imposed on capital borrowers but paid to the capital providers instead of investors.

All in all, the key difference between the two metrics is that APR takes compounding into account, whereas APY just describes the return rate with interest on interest.

Collateralization in DeFi: what is it?

Whenever you’re borrowing assets, you’ll have to provide collateral, which has to cover your loan and act as insurance for it.

Collateralization is when a borrower pledges their asset as a way for the lender to compensate their capital in case the borrower fails to pay back the loan according to the initial agreement. Lenders sometimes ask borrowers to put up their valuable assets as collateral, which lenders can possess if the loan defaults.

In DeFi, collateralization plays a huge role depending on the type of protocol you use. If the value of your collateral isn’t up to the standard required by the protocol, the collateral may then be liquidated on the open market. To prevent this from happening, you can simply add a bit more collateral. What’s more, to diminish the risk of severe market crashes, borrowers can deposit more value than they intend to borrow.

How risky is yield farming?

Yield farming can be enormously complex and sometimes risky. It also involves high Ethereum gas fees but can be worth trying if a relatively large investment capital has been provided. As well as this, there are other risks associated with crypto yield farming, including liquidation risk, impermanent loss, and smart contract risk. Let’s find out more about each and learn how to deal with them.

Liquidation risk

Liquidation normally occurs when a user’s collateral is insufficient to cover the amount of their loan. This can, unfortunately, result in a liquidation penalty charged to the collateral, which happens if the collateral value plummets or the loan value increases.

To reduce the likelihood of liquidation, it’s advisable to use less volatile assets and always track market conditions. Sometimes it’s better to use stablecoins for both the collateral and the loan, e.g. you can borrow USDC against DAI — their value is normally stable as they’re pegged to fiat currencies. Also remember that the more volatile the asset is, the bigger the chances of liquidation. That’s why it’s important to make sure that the collateral and the loans are less volatile assets or stablecoins — and you’ll considerably reduce the liquidation risk.

Impermanent loss

A lot of automated market makers (AMMs) order users to put their funds into liquidity pools so as to earn rewards and gain trading fees that are paid out by decentralized exchange users. It’s widely regarded as a nice way of earning passive income independently of market fluctuations. Nevertheless, when the market experiences sharp moves, users may lose their money. This risk is called impermanent loss, and liquidity providers should be aware of it.

DeFi has been going strong for almost a year already but there’s still no solution that would be able to entirely eradicate the problem of impermanent loss. A number of developers, though, have been doing their best to create new Decentralized Exchanges (DEXs) or make changes in the existing popular protocols to offer an efficient way of avoiding losses.

When participating in the liquidity pool, users can be faced with a problem when AMMs don’t automatically update their prices based on market movements. This leads to arbitrage opportunities and entails some risks for liquidity providers.

When a token price on centralized exchanges decreases by 50%, for example, this change won’t be reflected immediately in the decentralized platforms. Arbitrage traders, in their turn, can use this time to sell their ETH on DeFi platforms for an inflated price. The difference in pricing is then covered by liquidity providers who suffer losses when the price goes down and cannot benefit when it goes up since their capital has been locked in the pool.

To prevent impermanent loss issues, liquidity providers are advised to choose pools wisely and be aware of how they function. Besides, it’s worth asking other users’ opinions about the protocol and their experience of working with it. Some protocols can provide a solution to mitigate impermanent loss risk, and, as the industry is fully aware of the problem, quite a number of projects are working on various solutions that will help overcome this challenge.

Smart сontract risk

Smart contracts are a secure and reliable way of processing various deals and transactions. They assist in fighting corruption and avoiding human error as everything is carried out automatically in accordance with the terms and conditions provided to the smart contract in advance.

Examples of yield farming protocols

Several yield farming protocols are in existence, and each of them has its own risks and rules. Let’s take a look at the protocols outlined below and study their peculiarities.

Compound Finance

Being an algorithmic money market and one of the main protocols of the yield farming ecosystem, Compound enables its users to lend and borrow assets. Those who have an Ethereum wallet can provide assets to Compound’s liquidity pool and gain rewards that instantly start compounding. The rates are settled algorithmically depending on supply and demand.

MakerDAO

MakerDAO is considered to be one of the first DeFi projects. It’s a decentralized lending platform that supports the creation of DAI — a stablecoin pegged to the value of the USD.

MakerDAO also utilizes the Maker Protocol that provides users with an opportunity to borrow against collateral. The platform is built on the Ethereum blockchain and its crypto loans are managed by Ethereum smart contracts.

Synthetix

Synthetix is a synthetic protocol that allows for the issuance of synthetic assets on the Ethereum blockchain. It also supports different types of synthetic commodities including gold, silver, synthetic cryptocurrencies, synthetic fiat currencies — in other words, anything with a reliable price feed. Synthetix also enables anyone to lock up Synthetix Network Token (SNX) or ETH as collateral and mint synthetic assets against it.

Aave

Aave is an open-source and non-custodial decentralized lending protocol, which is widely used by yield farmers. Depending on relevant market conditions, interest rates can be adjusted algorithmically. Once lenders have contributed their funds, they receive tokens in return, which can earn and compound interests when deposited.

Uniswap

Uniswap is a decentralized exchange protocol that grants users an opportunity to handle trustless token swaps. With this protocol, it’s possible to conduct automated transactions with cryptocurrency tokens on the Ethereum blockchain with the help of smart contracts.

To establish a new market, Uniswap also allows liquidity providers to deposit an equivalent value of two tokens. Afterward, traders are enabled to trade against that liquidity pool, and LPs can gain fees from the trades that take place in their pool.

Curve Finance

Curve Finance is an Ethereum-based DEX protocol designed to enable users to efficiently carry out high-value swaps with stablecoins. Curve also supports DAI, USDC, TUSD, and BTC pairs, and allows users to trade swiftly and efficiently between these pairs.

Balancer

The balancer is a multi-token automated market-making protocol. It provides custom token allocations within a liquidity pool and offers liquidity providers the opportunity to establish customized Balancer pools and earn fees for the trades carried out in their pools. Due to its flexibility, Balancer has been widely adopted by yield farmers to optimize their work.

The prospects for yield farming

Right now, it’s almost impossible to accurately and reliably predict the prospects for yield farming. It’s undeniable that high rewards remain the chief motivating factor that makes investors and crypto enthusiasts embrace the liquidity mining market. For sure, large gas fees in the Ethereum network along with numerous risks may frighten inexperienced players. But despite this, most DeFi participants — 70% to be exact — express a strong desire to keep on yield farming, and their positive experience is bound to attract many more new players.

These days, yield farming is expected to become the new star of the DeFi universe and contribute enormously to the expansion of the industry as well as attracting financial capital and new participants to the field.

The yield farming sector is gradually getting more robust and its architects are coming up with various approaches to enhancing liquidity incentives and guaranteeing better security to all users. But as of today, we’re yet to carry out the necessary research and risk assessments to ensure the smoothness, safety, and efficiency of yield farming and provide the desired levels of confidence in it.

Conclusion

Yield farming is a new financial incentive within the DeFi infrastructure, capable of both incentivizing liquidity and enabling fair distribution of tokens. This activity has also brought significant benefits to DeFi stakeholders, by decreasing the slippage for token swaps across multiple DeFi apps and bolstering the growth of strong communities, which otherwise wouldn’t exist. In addition, yield farming has allowed numerous projects to get off the ground, which can now secure billions in users’ funds at short notice.

It’s evident that yield farming will continue to evolve. Technological advances and breakthroughs within the DeFi infrastructure have become a common occurrence, and yield farming is bound to stay with us, though it may undergo some transformation and change.

DX Business Group always keeps abreast of the latest developments and trends in the DeFi and cryptocurrency space. Once you decide to get started with yield farming, reach out to our team of top specialists first.

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Lending and borrowing crypto-assets is the major business among decentralized applications. Using ethereum wallets, users can share and borrow from anyone and anywhere on decentralized lending platforms. DeFi lending platforms implement the security and trustless benefits that blockchain and cryptocurrency provide and serve as the newest financial service provider.

Through a distributed and decentralized system, DeFi lending allows investors and lenders to issue loans or deposit fiat for some interest rate. This option benefits users because it allows them to earn a relatively low-risk interest on current holdings without the intervention of third-party services.

Defi lending marketplace has been considered as a more valuable and innovative platform creating a fundamental breakthrough for the future of finance and cryptocurrency.

What Is A DeFi lending And Borrowing Platform?

A decentralized Finance (DeFi) lending and borrowing platform take over all the drawbacks that traditional banking had and fills the rift that traditional banking lacks.

It offers its investors or lenders loans or lets them deposit their currency in return for an exact amount of interest in a very decentralized application. DeFi lending and borrowing platforms are integrated with all the DeFi protocols like DApps and smart contracts.

Workflow of DeFi lending work:

Users can lend their crypto assets to others and get interested in the loan amount. Anyone can become a lender within the realm of DeFi. A lender can loan their cryptos to other users on the DeFi platform and obtain the interest as mentioned in the contract through lending pools.

By using smart contracts, Clients can pool their crypto assets and distribute them to borrowers. Each pool has its own methodology for both lending and borrowing.

The borrower should offer collateral higher than the loan amount to borrow. Smart contracts are used to store this amount of currency of equal value to the sum of the loan. To trade borrowed cryptocurrency, any token can be used. For example, if a client wants to borrow one bitcoin, he should store the equivalent value of one bitcoin in DAI.

A situation may occur when the collateral cost comes under the cost of the loan because of fluctuation in Bitcoin prices.

Decentralized lending is like taking your money from your pocket to lend someone. Both smart contracts and decentralized applications replace the need for mediators and negotiators. For example, if you want to give a $30000 loan via DApp, you would have to do a few clicks.

The entire process is straightforward and simple. Users can select any DApp application that supports a smart contract and borrowers. They can decide the interest rate for the lending amount, update it in the app, and lend it straight away. A smart contract automates both the lending and borrowing agreement once a suitable borrower is found.

Key features of DeFi lending platforms:

• DeFi lending platforms allow its users to lend their assets to other users for interest like traditional lending platforms. DeFi platforms function without any intermediators and users receive their financial rewards in cryptos directly.
• Users can avail of a loan without undergoing any KYC or AML checks, without disclosing their identity to a third party. This makes financial services more simple and accessible.
• The main advantage of DeFi platforms compared to centralized lending platforms is their high-level security because of the blockchain applications.
• DeFi platforms are anonymous and users are required to provide collateral higher than the loan amount.

Why is Decentralized lending better and more convenient than the traditional system?

DeFi platforms offer a lot of lending opportunities and attractive benefits to lenders and borrowers, giving this service a new meaning. The main advantages of decentralized lending are described below:

Transparency- All transactions are recorded on the blockchain system and available for verification on the blockchain network. This increased transparency guarantees effective data analysis and verified access to all users on the system.

Interoperability- All procedures involving decentralized finance and applications blend and match with one another by the interconnected software stack.

Increased speed of loan process – Digital lending speeds up the loan process. Some key features such as cloud-based assistance, analytics for fraud detection, and AI computations for ideal loan terms and risk factors support and act as a pillar for decentralized lending. All the above-advanced features help speed up the loan process. Once the loan is validated, lenders can send offers using e-contracts.

Avail interest in holding crypto assets– Users can lend their crypto assets at good interest rates mentioned in a contract and no need to sell their crypto assets. By doing this, they can earn money along with the interest in a predefined time.

Less documentation – DeFi platforms do not require much paperwork like traditional banking systems. It involves just a few clicks in a Decentralized application.

The above discussion shows that Defi lending has a high potential to reshape the entire financial system. It attempts to decentralize the core traditional finance services like payments, trading, investments, insurance, lending, and borrowing. Defi lending being involved with the intriguing technology truly has vast opportunities to revolutionize the global financial landscape.

Why should you approach DX Business Group to develop your DeFi lending platform?

• DX Business Group, a leading DeFi Development Company, has 10+ years of expertise in blockchain technology. 
• Our pool of blockchain architects and DeFi developers is certain to deliver quality DeFi development services to launch your DeFi lending/borrowing platform.
• We tend to integrate your DeFi platform with all the vital functions and features like charge loan origination fees, late fees, bounced payment fees, top-performing rate of returns, and many lending.
• Get in touch with our experts and experience your idea of developing Defi lending apps getting converted into reality.

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Decentralized Application (dApp) Development

Our passion and penchant for emerging technology have allowed us to stay at the forefront in the Decentralised Application (DAPP) Development.

We provide full-cycle dApp Services and use an agile methodology that has helped us deliver dApp solutions at reasonable rates and within estimated time frames.

dApp Services For Business

DX Business Group is recognized as one of the top dApp development companies that brings decentralization to the core of your business. We create applications that are specifically crafted to serve the purpose of your enterprise. With this particular product, you can harness the power of the entire blockchain mechanism to the fullest.

We make Ethereum dApp Development so productive that you can integrate it into any segment of the operations. Our services are overarching and they give solutions to every problem that you might come across. You can make things anonymous, synchronized, and robust by making the most of this technology.

Benefits of Decentralized Finance (DeFi) Development

Automation

The whole platform is automation-based and does not require manual interception. The facilitation of smart contracts accomplishes this.

Smart Contracts

Smart Contracts, the non-editable collective agreements, run the DeFi system’s dynamic structure without disputes since they are automated.

Security

The peer-to-peer blockchain-based network ensures that several core-operational nodes are present, thereby preventing abrupt shutdown and data breach.

Transparent Protocols

The lack of an insecure central authority who has control over the data of your users makes the system extremely open and trustworthy.

Decentralized Finance (DeFi) Development Services

MVP Consulting

Our experts in dApp development keep updated with the latest trends in the dApp industry and can help you evaluate whether or not your idea can succeed. As per the requirements of the customer, we classify the possible stakeholders, describe technical components, and recommend the right blockchain platform.

User Interface

Right from ideation, wireframe designs, low fidelity and high fidelity design to excellent prototypes, we follow the most organized user interface modeling methods. We have an established track record of producing user-friendly applications for our clients.

Decentralized Exchange Development

As per the requirements of the client, we can create a highly scalable and customizable exchange platform. Via distributed shared order books and APIs, the exchange platform can connect external exchanges.

Cloud Services

We enable our clients to support dApps as API-externalized microservices. Our microservices will let you focus on a single organization’s strength. We will provide the data store for the cloud for each microservice.

Smart Contracts

Our smart contract service includes contracts on various platforms such as Ethereum, Neo, and others to write, test and deploy. We help our customers choose the best platform to meet their business needs.

Decentralized Storage

Several cloud storage systems are decentralized, enabling peer-to-peer transactions and offering the most stable, private, and successful cloud storage. We define and pick the correct project platform.

dApp Porting

In dApp Porting, we provide comprehensive support for a reusable codebase on any operating system. We can migrate the current application to any blockchain platform that meets the requirements of the organization.

dApp Upgrade Services

To run business operations smoothly, the application should be updated on time. Whenever needed, we provide customers with full migration and upgrade services. Our team can build new smart contracts and update the dApps’ microservices.

Why is DX Business Group the right choice for your Decentralized Finance (DeFi) Development?

Quality performance

Rigorous testing cycles and quality controls are carried out before the completed platform meets the specifications of our client and the performance expectations of the industry.

Client Collaboration

Opportunity to work exclusively with our technical team and direct us step-by-step in the process of optimally perfecting your dream DeFi business.

Innovation

It distinguishes itself with its ability to integrate additional visionary features and applications into a conventional paradigm from its contemporary peers.

Prompt Delivery

Prioritizing the needs and urgency of consumers, tasks are planned to be completed on time, followed by instant standard checks to facilitate timely delivery.

The post An Essential Guide To DApp Development to level-up your business growth appeared first on DX Business Group Software Solutions - Blog.

Penetrate the automated world of decentralized finance with our DeFi smart contract. We are a DeFi Smart Contract development company that delivers superior financial services. Get in touch with us today and discover different lucrative avenues to level up your business.

DeFi Smart Contract Development

Decentralized Finance (DeFi) Smart Contract Development is the fuel behind the decentralized finance ecosystem. It is an activity that includes development, auditing, and deploying smart contracts on decentralized finance without the involvement of an intermediary. DeFi solutions have witnessed revolutionary growth due to the deployment of smart contracts. Smart contracts are beneficial for entrepreneurs as well as consumers. Therefore, people are adopting it wholeheartedly.

Smart contracts are a set of automated lines of codes that have been generated with the mutual understanding of the seller and the buyer upon the trading activity. If both the parties agree on the present conditions, then the smart contract executes its function. With the help of smart contract activities like lending, borrowing, insurance, banking, and much more can be completed at a more incredible speed consuming less time.

We, at DX Business Group, have Experts in DeFi smart contract development, especially for running DeFi DApps without any vulnerabilities. We provide smart contract development on various blockchain platforms like TRON, Ethereum, EOS, etc.

What Is A Smart Contract?

A smart contract is virtual and can technically be defined as a transaction protocol. It can be said that it has a structure of a typical deal. There will be a set of predefined rules, and all of them have to be met for the successful initiation of the contract. If there is any hassle in fulfilling the regulations, the contract will automatically nullify itself.

The most attractive part of the contract is “Automatic Execution.” This means that once the code of the smart contract is set, automated execution will initiate. It is immutable. The smart contract is widely built on Ethereum. After Ethereum, various other cryptocurrencies are supporting smart contracts on its platform. For example, TRON smart contract.

What Is A DeFi Smart Contract?

DeFi protocols have been successfully ruling the market because of the deployment of smart contracts in them. Due to smart contracts, DeFi has witnessed revolutionary growth in the market. Due to the integration of smart contracts on DeFi protocols, trading has been performed more securely and reliably. It has contributed towards the upliftment of the DeFi protocol in the sector.

Roles And Benefits Of Smart Contract-Based DeFi Protocol

DIGITALIZATION

Smart contracts are the set of predefined codes, which has facilitated the DeFi platform to go online and saves the cost of owners and consumers

SECURITY

Smart contracts are immutable and can not be altered once set

EXTERNAL FACTORS

No external factors can interfere and disturb the working of smart contrast

FEES

Due to the elimination of the third party, the cost is reduced

ACCURACY

Due to the absence of human touch, it can achieve the utmost accuracy

SPEED

As it is an automated process, it performs at a higher speed

Smart Contracts Are The Backbone Of DeFi Protocol

The smooth functioning of the DeFi protocol is possible due to the existence of smart contracts. These smart contracts are automated source codes that eliminate the necessity of a third party on the platform. Due to this, the DeFi protocol platforms are safe, reliable, and secure to trade. It becomes cost-effective for both owners as well as buyers.

DeFi protocol’s necessity is a smart contract. It is immutable. Therefore, every smart contract needs predefined and audited to perform in the best possible way.

Major Use Cases Of DeFi Smart Contracts

DeFi Smart Contracts has applications in multiple industries including:

Cryptocurrency Exchanges

• Cryptocurrency exchanges have skyrocketed to the next level due to the integration of smart contracts.

Lending and Borrowing

• DeFi lending and borrowing allows for better security, accountability, and transparency in the financial system

Stablecoins

• Stablecoins are blockchain-issued tokens designed to hold on to a specific amount.

Market Predictions

• Market predictions about the ups and downs of cryptocurrencies can be made with DeFi smart contract

Asset Management

• Asset management can be done with the wallet integration on the DeFi platform

Various Existing Projects Of DeFi That Utilizes Smart Contract

Synthetic

Swapping securities and assets are quickly done with the help of smart contracts

Maker

With the help of smart contracts on Maker, users can borrow DAI (which is pegged to USD) by depositing the ETH as collateral.

Credit & Lending

The credit and Lending service in a decentralized finance platform generates an avenue for traditional financial services, due to which there is an intermediary, and thus, the cost increases.

Compound

The compound is an automated protocol based on Ethereum, which upholds various tokens like BAT, DAI, ETH, USDC, REP, ZRX. The interest rate varies as per the demand of the borrowers (increases) and the lenders (decreases).

UniSwap and FalconSwap

Both of these projects are flourishing in the DeFi platform. These projects embrace smart contracts in their FWT token in the transaction and for other activities.

Advantages Of Smart Contracts In DeFi Space

High-Quality Security

Any transaction that undergoes on a blockchain network is powered by a smart contract, which is developed and audited suitably. Thus, it offers high-end security.

A Complete Digital Solution

Smart contracts are digital ledger, which digitally stores every transaction.

Precision

The working of smart contracts is entirely automatic and does not require any human effort, due to which there is the utmost level of accuracy on the platform

Speed

All the financial functionalities are executed automatically with a more incredible speed

Decentralization

All the functions are performed under smart contracts that are entirely decentralized

Immutable

Once the smart contracts are integrated into the platform, they can not be changed.

Low Transaction Fees

As there is no involvement of any third party in the transaction process, users have to pay minimum transaction fees

Authority

Integration of smart contracts on wallets gives control to the users over their assets.

How To Build Your Own DeFi Smart Contract

Simple steps to build smart contracts using DeFi on Ethereum

• Set up the development environment
• Set up the project
• Open the project in Visual Studio Code
• Create an account on Ethereum
• Take care of gas and mining
• Obtain testnet ETH

Where To Get The Best DeFi Smart Contract Development Services?

If you have specific requirements for your DeFi platform or DApp, then you need to integrate it in a smart contract for smooth functioning. If you have complete technical knowledge about it, then you can code the smart contract for your DeFi solution and integrate it on the platform or the protocol.

Whereas, if you are completely blind about it, then you can get in touch with any DeFi development company which provides DeFi smart contract development solutions. DX Business Group is the best blockchain development company that offers various perfect smart contract development solutions like DeFi, MLM, cryptocurrency exchange, etc.

Our DeFi Smart Contract Development Solutions

DeFi Smart Contract Re-Auditing
We have the practice of reauditing the smart contract code to avoid any vulnerability.

DeFi Smart Contract Auditing
To tackle the vulnerabilities, auditing is a must process before deployment. We offer a keen auditing service for the smart contract.

Smart Contract For DEX
Our Smart Contract for DEX helps in the easy exchange of the assets for the users. It takes care of different aspects such as maintenance of the off-chain order books, ensuring accurate on-chain order matching, and facilitating prompt on-chain settlement of the trade requests.

DeFi Smart Contract Development
We have a team of skilled developers that are capable of developing immutable smart contracts for your DeFi solutions.

Integration/Deployment Of DeFi Dapp
After the development, deployment, auditing, and reauditing of the smart contracts, they are integrated with the DeFi Dapps or DeFi protocol.

DeFi Smart Contract Optimization
We offer a service for optimization of the codes on your DeFi smart contracts. Due to this, the transaction proceeds speedily. It leads to greater efficiency and boosts the performance of DeFi DApps.

Why Choose DX Business Group?

DX Business Group is a leading, DeFi smart contract development company. We build bug-free and unique smart contacts for every DeFi contract platform. We have a team that holds years of experience in developing smart contracts on DeFi platforms. Here is the list of reasons that will help you to choose DX Business Group as your smart contract developer company

1. Customized exchange
2. 24*7 technical support
3. Pocket-friendly prices
4. Advanced blockchain technology
5. Multiple-payment method
6. Re-auditing tools
7. Error-free coding of smart contract

The post The Best DeFi Smart Contract Platform Development Services appeared first on DX Business Group Software Solutions - Blog.

DeFi Yield Farming is sparkling as a light in every headline of recent crypto news.

What is Yield Farming?

Decentralized Finance, shortly termed as DeFi is an open-source protocol that provides permissionless and fast financial services. The process by which users provide liquidity to DeFi open-source protocols and get rewards is termed as DeFi Yield Farming.

In simple terms, the process of yield farming carried out on platforms that are built using DeFi protocols offers native DeFi tokens of that particular platform and this process is known as DeFi Yield Farming.

Yield farming protocols, in short, encourage liquidity providers (LPs) to lock up their crypto assets in a smart contract solution-based liquidity pool. A proportion of transaction costs, interest from lenders, or a governance token may all be obtained as rewards. These returns are calculated as a percentage yield on an annual basis (APY). The value of the released returns dips as more investors allocate funds to the associated liquidity pool.

The most common DeFi protocols run on the Ethereum network and offer governance tokens for liquidity mining. After offering liquidity to decentralized exchanges, tokens can be farmed in liquidity pools.

Also, Read | How to Create Decentralized Finance (DeFi) Protocol like yearn. Finance

Important terminology in Yield Farming:

What is Liquidity?

Liquidity refers to the ability of the asset to be converted to cash. In the crypto globe, the market becomes competitive when an asset gets bought or sold more.

What are DEFI Liquidity Pools?

Liquidity Pools are smart contracts that lock up tokens or assets to facilitate trading by providing high liquidity. Liquidity Pools offer users better returns than money markets but involve certain risks.

Uniswap and Balancer are the most popular DeFi platform termed as the largest liquidity pools.

Who are DeFi Liquidity Providers?

The users who stake their assets in the liquidity pools are known as liquidity providers. Liquidity providers are also termed as market makers, as they supply what buyers and sellers want to trade.

How Does DeFi Yield Farming Works?

Yield farming is referred to as Automated Market Maker.

First, the liquidity providers deposit their assets or funds to the liquidity pool. This liquidity pool provides a marketplace where users or LPs can lend, borrow or exchange their tokens or assets. These platforms collect fees which are then paid back to the liquidity providers based on their share of the liquidity pool.

However, processes can vary with different technologies and approaches. The funds deposited are mostly stable coins pegged to USD. DAI, USDT, BUSD are the most commonly used stablecoins in DeFi yield farming.

How Are Returns Calculated in DeFi Yield Farming?

The Estimated returns in Yield farming are calculated on an annual basis. The most important metrics in the calculation of returns in yield farming are the Annual Percentage Rate (APR) and Annual Percentage Yield (APY).

Annual Percentage Yield (APY):

The annual rate of return is charged on borrowers and paid to providers. It accounts for compounding which refers to reinvestment of profits to generate more returns.

Annual Percentage Rate (APR):

The annual rate of return imposed on borrowers and paid to the investors is termed the Annual Percentage Rate. 

DeFi should find its own metrics for the calculation of returns in yield farming.

Risks in DeFi Yield Farming:

In Defi,  farming involves depositing funds to a smart contract with no central authority. And if the smart contract codes are lost and found to be an error, the entire financial transaction will also be lost. This implies that the funds transferred will be lost. This makes yield farmers lose all their assets if the system is blocked.

When the DeFi smart contracts are free from vulnerabilities, the risks involved in DeFi yield farming can be reduced.

What Sparked the Rise of High-Yield Farming?

The introduction of the COMP token – the Compound Finance ecosystem’s governance token – has sparked a surge of interest in yield farming. Token holders get privileges for governance tokens. 

Distributing these governance tokens algorithmically with liquidity bonuses is a common way to kickstart a decentralized blockchain. Liquidity providers are enticed to “farm” the new token by providing liquidity to the protocol.

COMP raised the popularity of this form of token distribution model. Other DeFi ventures have also devised creative ways to draw liquidity to their ecosystems.

What are the Advantages and Disadvantages of Yield Farming?

• Profit is the main advantage of yield farming.  Yield farmers who implement a new project are rewarded with tokens and huge gains can be made if yield farmers sell certain tokens at the right time. Those profits can be re-invested in other DeFi projects to increase yield even more.
• Yield farmers must typically invest a substantial amount of money upfront to make any significant profits. Yield farmers face a major liquidation risk if the price drops unexpectedly, as it did with HotdogSwap, due to the highly volatile nature of cryptocurrencies, particularly DeFi tokens.
• Yield farming techniques are complicated and those who don’t completely comprehend all of the underlying protocols are at greater risk.
• Yield farmers have put their money on the project teams and the smart contract code that underpins them. Many developers and entrepreneurs start projects from the ground up or even copy the code of their predecessors. Even if the project team is trustworthy, the code is often untested and prone to bugs, making it vulnerable to attackers.

Key Challenges and Opportunities with Yield Farming:

The Ethereum blockchain is used for the majority of DeFi applications, posing some significant challenges for yield farmers. The Ethereum network is experiencing scalability issues ahead of the 2.0 update. As yield farming becomes more common, the Ethereum network becomes clogged, resulting in long confirmation times and rising transaction fees.

As a result of this scenario, some have speculated that DeFi could end up self-cannibalizing. Ethereum’s problems, on the other hand, seem to be more likely to support other networks in the long run. The Binance Smart Chain, for example, has emerged as a viable alternative for yield farmers who flocked to the network to take advantage of new DeFi DApps like BurgerSwap.

Additionally, Ethereum’s existing DeFi operators are attempting to solve the problem with their second-layer solutions for the network. As a result, assuming that Ethereum’s issues do not prove fatal to DeFi, yield farming will continue to exist.

The Future of DeFi Yield Farming:

DeFi Yield farming provides attractive returns to users at least a hundred times higher than a traditional bank on their staked crypto assets and driving the DeFi space to the next level in the crypto market.

In the future, there may be more and more DeFi based platforms inherited with automated yield farming that will tend to rock the crypto globe. This yield farming has inspired many individuals and yet to attract many in the nearer future.

DX Business Group’s expertise in the development of yield farming platforms:

DX Business Group always keeps abreast of the latest developments and trends in the DeFi and cryptocurrency space. Once you decide to get started with yield farming, reach out to our team of top specialists first.

• Our team consists of elite developers, business analysts, and marketers who offer unconditional support to your project, thereby guaranteeing its success. 
• DX Business Group developed a reputation for its DeFi Development solutions and Services and all our services are customizable.
• We started to support DeFi based projects mostly for the aggressive growth in yield farming.

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Decentralized Finance is a permissionless alternative to all our traditional finance services. Here, the whole financial system is decentralized without any intermediary or middleman. With the popularity of DeFi, new forms of assets are rising, for example, synthetic assets which serve the needs of a wider range of users.

What is a Synthetic asset?

“Synthetic asset” refers to a combination of crypto and traditional derivative assets that are tokenized derivatives. Stocks or bonds that a trader does not own but wants to buy or sell are called derivatives.

For instance, rather than buying a stock, an investment company may buy a call option and sell a put option on the same stock. The use of synthetic assets here permits a certain company to develop the use of multiple financial models rather than a single investment crypto asset.

Synthetic assets create a cryptocurrency token for a derivative by adding a record of it on the blockchain thus creating a relationship between the underlying asset and the purchaser. Investors can bank on the variation of tokens without having to own them in their wallets. This feature of derivatives is the key reason for its increasing popularity in the crypto world. In this same way, synthetic assets also gain popularity among DeFi enthusiasts because they provide all necessary tools to traditional traders in the crypto world.

Using these assets, a trader can tokenize and trade anything. They can trade anything on the blockchain after adding a derivative to the existing asset and tokenizing it.

Increased security and traceability are the main reasons for choosing synthetic assets as a preferred method of investing. All trade takes place on blockchain and all transactions are recorded on the distributed ledger thus providing anonymity and security to traders.

New synthetic asset-based exchanges are rising on various blockchains that allow users to trade with maximum flexibility and lower gas fees. The biggest and most famous synthetic asset exchange is Synthetix. It is created specifically for trading tokenized derivatives and Synthetix is a leader of the niche market. Cream Finance and MakerDAO are two popular derivative protocols like Synthetix.

What is Synthetix?

Synthetic is the pillar for derivative trading in DeFi that allows users to get on-chain exposure to a wide range of assets.

Synthetix – A synthetic asset platform that provides on-chain exposure to real-world currencies, stocks, and commodities. They are backed by Synthetix Network Tokens (SNX), locked into a smart contract as collateral.

Synths monitor the prices of different assets to allow crypto-native users to trade P2C on Synthetix Exchange without liquidity limitations. This project was launched as a decentralized stablecoin protocol -Havven (HAV).

SNX token and its functions:

SNX is required to create synthetic assets, synths. Users can purchase these tokens from crypto exchanges and place them in a suitable wallet. New synths are minted, once these tokens are staked.

Synth tokens:

Synth tokens are the assets that replicate the prices of real assets. Stakers create a debt when new synths are minted and they should pay the same amount to synths before withdrawing their locked SNX tokens. These tokens do not exactly match the represented assets.

Synths value is volatile and changes in investments like stocks where the price changes constantly. Users have to pay different synths amount to get their masked SNX tokens compared to the initially received amount.

One big advantage of the synth is that users can trade different synth types as long as they have the same market value.  A bitcoin synth can be exchanged for a Tesla share synth if they have the same value.

Mintr:

Mintr is the primary dApp within the Synthetix Network providing a UI for minting Synths and participating in the ecosystem at large. The users can connect to Mintr via web3 wallets like MetaMask, Ledger, Trezor, and Coinbase Wallet. Once connected, users can carry out any of the aforementioned actions if they have a sufficient amount of SNX in their wallets.

Collateral:

To protect the platform from extreme market price fluctuations, a higher collateralization rate is charged. The rate of collateralization is about 750% in synthetic systems.

How does  SNX stacking work?

• First, a user needs to buy SNX on any exchange and connect to a Web3-Wallet (e.g., MetaMask).
• Go to Mintr, Synthetix’s proprietary portal interface to raise and manage synths.
• Connect your wallet to Mintr.
• Click on ‘Mint’ and select the desired type of Synth to mint.
• Remember the 750% collateralization rate.
• Enter the number of synths you would like to mint.
• Click on ‘mint now.’
• Confirm the transaction in the Web3 wallet.
• After this process, the SNX tokens will be clocked automatically.
• Users can now enjoy rewards obtained from trading fees. Users can also participate in the inflationary behavior of the SNX tokens.

Why synthetics and DeFi?

There are a few reasons why synthetics are useful to multiple participants in the decentralized finance (eDeFi) ecosystem.

• Synthetics provide a mechanism for real-world assets to be traded on a blockchain with trust.
• One of the main issues is a lack of liquidity in the current Defi.  Synthetics could help the markets scale their operations by hedging positions and protecting profits.
• Another issue is the smart contract platforms with technical limitations. With synthetic exchange, the traders don’t need direct ownership of an asset.
• DEXes like  Synthetix avoid the need for withdrawal fees (but gas fees will be charged) because trading is done directly from wallet to wallet.

Why DX Business Group For Crypto Synthetic Assets Development?

DX Business Group offers world-class DeFi development services for global countries and focuses on offering high-performing DeFi solutions primarily on synthetic assets development.

• DX Business Group, a leading Decentralized Finance (DeFi) Development Company, has 6+ years of experience in Cryptocurrency & blockchain technology. 
• DX Business Group delivered high-performing synthetic assets development solutions to clients across the globe.
• We offer the following Decentralized Finance (DeFi) cryptocurrency services to enterprises & start-ups globally.

DeFi Yield Farming Development,

DeFi Liquidity Mining,

DeFi Lending/ Borrowing Platform Development,

DeFi dApp Development,

DeFi Wallet Development,

DeFi Token Development,

DeFi Smart Contract Development,

Decentralized Exchange Development,

DeFi Crypto Payment Gateway Development,

DeFi Exchange Development,

DeFi Lottery System Development,

DeFi Synthetic Assets Development,

DeFi Insurance Platform Development

The post Launch and utilize the attractive benefits of your own DeFi synthetic assets appeared first on DX Business Group Software Solutions - Blog.

Every DeFi lending and borrowing platform operates without the intervention of third parties.

In these platforms, smart contacts enable the investors to lend or save their funds and allow borrowers to receive funds from lenders for suitable interest rates.

What is a DeFi Lending And Borrowing Platform?

A decentralized Finance (DeFi) lending and borrowing platform remove all the hurdles faced by traditional banking for smooth and effective operations.

It allows investors to deposit their currency or lend loans to another user in return for an equivalent amount of interest in a very decentralized application. These platforms are integrated with all the DeFi protocols like DApps and smart contracts.

Special features Of A DeFi lending And Borrowing Platform With Protocols:

Transparency and quicker operations:

Blockchain records every transaction and can be verified by users on the network. This transparency level facilities data analysis and enables verified access to all users on the network. Smart contracts make operations faster by preventing the need for intermediates.

Flash Loans:

Flash Loans are uncollateralized loan feature in DeFi which allows users to borrow instantly and seamlessly without collateral given that the liquidity is returned to the pool within a single transaction block.

Rate switch:

It is a distinguishing feature that allows users to switch between two interest rates such as stable and variable in order to receive the best interest rate for the given amount because of market fluctuations.

Permissionless:

DeFi lending and borrowing protocols allow anyone with a crypto wallet to access Defi applications built on Blockchain, irrespective of their location and without any minimum amount of funds.

Crypto billfold:

A crypto billfold is integrated into the platform which allows users to hold and access their personal crypto keys.

Unique Collaterals:

DeFi lending and borrowing platforms support a wide range of collateral types such as DAI, ETH, BAT, LINK, MANA, MKR, SNX, USDT, USDC, TUSD, USDT, USD, BUSD, etc.

Investment Rewards:

DeFi platforms enable lenders to earn some extra rewards in addition to receiving interest for the disbursed amount.

Programmability and borrowing Interoperability:

Smart contracts automatically govern the operations and lead to the creation of new digital assets while interconnected software stack makes sure that Defi protocols and applications integrate and adaptable with one another.

Recapitalization:

DeFi disposal and borrowing platform development enables its users to create a balance between equity and debt.

Workflow Of A DeFi disposal and borrowing Platform:

Defi lending and borrowing platforms allow users to lend their crypto/assets to others and earn interest for the disbursed amount without any intervention from third parties.

In DeFi, anyone can be a lender. The process is carried out through lending pools. As DeFi depends on the blockchain, the lenders earn high returns because of its transparent nature wherever risks are often assessed clearly.

By using smart contracts, lenders can pool their assets and distribute them to borrowers. It is recommended that lenders should identify the best interest type and the same goes for borrowers, as each pool have their own approach on how to borrow.

In DeFi, Collateral functions in the same way as it does for banks but the difference is that the system doesn’t involve any physical property used as collateral. A borrower should offer something more valuable than the borrowing amount to get the loan. Any crypto token can be used to exchange borrowed cryptocurrency. A borrower needs to deposit the price of one bitcoin in DAI, to borrow a bitcoin.

Because of fluctuations of crypto assets, a case may arise when the cost of collateral drops below the loan amount. To deal with this, Platforms like MakerDAO requires users to collateralize their loans at a minimum of 150% of the loan amount.

Why Choose DX Business Group for developing your DeFi lending and borrowing platform?

DX Business Group, a leading DeFi Development Company, has 10+ years of expertise in blockchain technology.

Our pool of blockchain architects and DeFi developers is certain to deliver quality DeFi development services to launch your DeFi lending and borrowing platform development.

DX Business Group tens to integrate your DeFi platform with all the vital functions and features like charge loan origination fees, late fees, bounced payment fees, top-performing rate of returns, and many lending.

The post Benefit your users by launching a DeFi lending and borrowing platform appeared first on DX Business Group Software Solutions - Blog.

NFTs (non-fungible tokens) became flash news recently when a digital image collage was sold for $69 million by an artist known as Beeple. People might find People’s artwork compelling or disgusting according to their taste in art. You can “acquire ” a duplicate of top-notch artworks while violating copyright laws.

NFTs are unique items that can solve copyright issues.

Almost everyone is aware of why the famous “The Mona Lisa” is worth about a billion dollars because it’s unique and a scarce item. An exact digital copy of the art is cheaper than bronze.

The Mona Lisa is priceless because it’s both unique and a scarce resource. Pebbles are unique too but high-quality artworks are able to attract a large group of audiences across the world thus sky-rocketing their prices.

On the other hand, digital arts can be reproduced as much as they could be. It is not possible to identify the original art from its copies. This reproducible ability of digital arts is a hindrance to -artists, musicians, and other creatives to showcase their skills and their works, collectors to acquire the original artwork, and investors to create a reliable digital market marketplace.

NFTs can be used to associate high-quality artworks by making them unique and economically valuable. It allows artists to sell the ownership of art that can be easily duplicated. NFTs paved the way for the digitalization of high-quality artworks like the Mona Lisa while protecting copyright claims.

What Does a Fungible and Non-Fungible Mean?

Fungible assets is can be exchanged for another of the same type. For example, Bitcoin is fungible. 

But non-fungible assets can’t be exchanged like fungible ones. Consider the house as simple non-fungible assets which are unique and have different values.

Non Fungible Tokens (NFT):

An NFT can be described as a set of data with a unique identifier and an ownership record that can’t be copied or modified. Each  NFT token is unique and it cannot be exchanged for another token like fungible assets but, NFTs can be purchased or sold online.

Unique Property Of NFT:

The following property is the main reason for the popularity of NFTs among the digital community:

Digital ownership:

Ownership of digital properties such as artwork can be certified using NFT. A collector can buy an NFT that is linked with the particular artwork and recorded on blockchain thus making it unique by preventing duplication works.

It is possible to create a market to sell or buy digital assets because of NFT. Collectors can support their favorite artists by buying NFTs linked with their art. They can also buy NFTs as an investment. Even popular memes can be tokenized and sold as an NFT. Meme stars like Ermagherd Girl (Maggie Goldenberger) and Scumbag Steve (Blake Boston) created this new trend by creating and auctioning meme-based NFTs.

How Do NFTs Work?

If you have knowledge of cryptocurrencies, you may have understood our description of NFTs. They both utilize blockchain technology and have similar qualities in some ways.

Blockchain  – A digital ledger that records transactions as a series of blocks. Each block is linked to previous ones with a cryptographic hash. thus resulting in an ever-building list of cryptographically linked records. Blockchains are distributed across computers throughout the world and cryptographically linked its impossible to modify the contained information the data making them a viable and preferred solution to store transactions without a central authority.

Initially developed to support fungible assets now the blockchain, particularly the Ethereum blockchain supports tokens that contain data about digital assets.

What Are NFTs Used For?

Apart from tokenizing digital arts and memes, NFTs can be used in the gaming sector to convert rare items like unique cars, weapons, etc. as NFT.

Also, the musician Grimes sold his video for $388,000 and Twitter CEO Jack Dorsey sold his first tweet as an NFT for almost $3 million.

How can you get into NFTs as a creator?

First, identify how to create one and link it with a digital asset. 

Then, choose a blockchain like Ethereum to store your NFT and create an Ethereum wallet with an exchange platform such as Coinbase. 

Finally, connect your wallet to an Ethereum marketplace such as OpenSea or Rarible, and export the asset. You can sell NFTs directly to collectors but Most NFTs are sold by auction.

NFTs are an interesting evolution of both the blockchain and digital markets. NFTs helps artists, writers, videographers, and musicians who struggle to monetize their work by creating a sustainable platform to showcase their skills

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