No doubt that Defi hype is at tremendous level in the year 2020 .
And also numbers of articles and videos people shared about Defi project in the Cryptocurrency social media market .
But here in this article, we will put our opinion about Defi based Platform benefit and chances of risk to use .
Advantage to use Defi
Here in the present time everyone can see that how Defi integrated crypto are pumping with good sign of high profit.
Every investors have his own opinion regarding Defi concept use in crypto for earning as a option of new opportunity.
Here we have listed numbers of benefits to invest in Defi.
- We can hold our saving in crypto to get interest of our fund like we get in bank system for fiat currency.
- Due to use of Defi Based project, people are holding their fund in crypto instead of fiat, so there are lots chances for crypto market grow with less chance of crash.
- We can easily put our fund at high interest return instead to go with another platforms which are paying very low amount of interest for our investment.
- We can get loan easily for our fund that we deposit at Defi wallet of Defi Based platform.
- Around $75 of value of loan we can get for $100 portfolio.
We mean, approx 75% of loan value of the whole portfolio we can can take. .During crash of the market, we will have option of investment in Defi based platform .
Disadvantages to use Defi Based Platforms
In previous article we explained that how Defi protocol works and provides us opportunity to make earning in cryptocurrency market.
But still there are few points that we needed to keep in our mind so that we remain always aware regarding the chances of risk with Defi movement.
Below are few points that we collected by throughout research on internet and comments by many crypto developers team.
- Interest rates of Defi are high in comparison with the traditional bank system, so there are chances that its market can crash.
- Defi is a evolutionary project in this field, which is totally new concept for crypto.
So there are chances that it can have some vulnerability.
- Almost all services making bonding with Defi are based on smart contract.
- If these coins owner will do any type of mistake in the code programming to integrate their services with Defi then there are lots of chances of hacking or attack on the network by hackers easily, which is not a new thing in this field
- We can’t see buy and sell order wall of the coin market due to Defi concept because in Defi concept we can Not put our order for buy or sell , we are restricted to buy and sell coins present time rate .
6. There are no transparency of rate at which we will buy and sell our coin , everything is like hidden system , so our mind can’t easily accept Defi concept of liquidity pool .