Bridging The Best of Two DeFi Worlds on Leofi
If you're current in Blockchain affairs, you must know that DeFi has all the action going on right now, not "crypto in a bull market" or...or..."institutions are diving in....or the recent dip", if you're not doing DeFi, you must be really boring.
Everybody knows that the one thing that plagues DeFi growth and usage is Ethereums exhorbitant transaction fees, take that away and you'll see a meteoric rise in TVL (total value locked in) on Ethereum network. Ease of access leads to higher TVL and a high TVL is good for business.
This is one of the shortcomings Ethereum 2.0 is trying to fix which is planned for the end of this year or next, but in a world as fast paced as the world of Cryptos,..................where innovations move at the speed of thought, a solution is never far away, Its no wonder Binance smart chain stole the show these couple of weeks as we watched the BNB token soar from 32$ to 342$ in the space of 1 month.
According to the stats in this post, most of the fun is leaving Uniswap and is now happening on BSC.
Its all cool and nice on the surface, but fundamentally, it shows that people are comfortable with centralization when it suits them, but that's a topic for another post entirely. IMO, centralization is a threat to security, but apparently people are somehow cool with it by DeFi-ing on Binance Smart chain because it offers more scalability than Ethereum.
It is no news that the Ethereum Blockchain is far more decentralized than the Binance smart chain whose decentralization is often debated, some people will never move to BSC with a ten foot pole based on the level of security they expect from a proper decentralized ecosystem, they will heartily forgo scalability for security.
While there are those who still trust people to act right as they commit their funds to them, choosing scalability over security. Ofcourse its not in my place to judge, each to their own..........
.............. Also, the fact that BSC is currently the buzz doesn't make it immune to other concerning issues like impermanent loss but they sure as heck know how to incentivize usage. So the whole thing is almost like picking a lesser evil.
This is where I see Thorchain playing a big role. Thorchain offers the security and scalability of both aforementioned chains, plus is equipped to eliminate impermanent loss. Thorchain is a fix to the major issues concerning the growth of DeFi in the Cryptosphere. And with the way the Rune token economy is set up, it has a lot of potential to grow.
Looking at how these solutions are connected, the most important part becomes how they will be harnessed by different applications in advancing the blocktech sphere. This is where Leofinance is playing an important role.
Leofinance is setting itself up to harness the best part of these solutions in offering people DeFi applications. Leofinance through Leofi plans to integrate the Binance smart chain, extending liquidity services to the community of the Binance smart chain users(Bleo).
Its also been rumoured that there are plans underway to integrate the Leofi application with Thorchain, to harness Thorchain's unique features and ability to eliminate impermanent loss while tapping into Thorchains DeFi community.
So imagine how massive the impact of wrapping Leo on Ethereum was on the Leo token economy, now replicate that impact in two folds, that's exactly what Leofinance is getting, the commmunity exposure of two other major chains plus their inherent abilities.
This is just massive as it takes more Leo tokens off the market. Also it was revealed that Leofi will include the Lending feature which will make use of Leo tokens as collateral which further reduces the outflow of Leo tokens into the market. I don't want to be too forward but if these are not recipes for a Leo moon, then I don't know what is.
Leofinance began as just a tribe on Hives second layer where finance topics are shared but it has evolved into an entire finance power house. I remain fully optimistic about the future of Leofinance, the team driving the innovations and the community daring enough to go through it all.
If all the action in the DeFi space is generated by those two chains, what do you think will happen when Leofi is released with all that capability?
Thanks for reading.
Posted Using LeoFinance Beta
