DeFi Is $140B Industry and Impulseven Is Bringing Open Finance to Masses

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by Julia Sakovich · 3 min read
DeFi Is $140B Industry and Impulseven Is Bringing Open Finance to Masses
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Impulseven provides a versatile Yield Farming platform that pays out competitive annual percentage yields in VEN tokens.

The DeFi industry has a total value of about US$140 billion locked up. DeFi provides a framework for protocol creation and financial accounting through smart contracts, which now rule several big DeFi applications, including Uniswap, Aave, Sushiswap, Dodo and MakerDAO. DAOs are becoming a common way to handle tokenized assets and promote open governance within decentralized organizations, thanks to the emergence of non-fungible tokens (NFTs) and Web 3.0.

This year, more Ether (ETH) is being locked up in decentralized finance contracts, while the sum kept on centralized exchanges continues to decline. Glassnode, an on-chain analytics company, published a chart on Friday comparing the amount of Ether invested in Ethereum-based smart contracts to the number of ETH kept on centralized exchanges over the previous 17 months. Ether’s share of supply on centralized exchanges has fallen by more than a quarter since the start of 2020, from approximately 17 percent to 12 percent. The percentage of ETH locked in smart contracts has risen by three-quarters, from 13% to 22.8 percent, indicating that DeFi is slowly eating into centralized exchanges’ revenues from Ethereum trading fees.

Impulseven provides a versatile Yield Farming platform that pays out competitive annual percentage yields in VEN tokens. Yield Farming helps the organization further boost its DeFi offering by providing additional liquidity. The collection of yield farming assets that are funded be released based on the code. On its website, Impulseven also allows users to stake their native VEN tokens. The platform’s staking mechanism is designed to distribute 80 percent of fees generated from all VEN transactions as dividends to all stakers. These payments begin to accrue the moment VEN tokens are staked, and dividends are paid out every three days. The dividend would be added to the stake, progressively increasing the number of VEN tokens staked.

Lending is one of the most common DeFi applications. It’s also recognized as Open Finance, and it’s a vital part of offering liquidity to both individuals and companies using crypto assets as leverage. DeFi loans are much more accessible than conventional banking, where the user has to go through a continuous process of paperwork to prove their creditworthiness. The borrower must express their desire to borrow in fiat or stablecoins and deposit collateral in any of the approved cryptocurrencies to receive a loan with low-interest rates. Liquidity for borrowing is typically given by other network participants who deposit funds into a lending pool regulated by a smart contract. The investors gain interest in their deposits if they contribute to the lending pool.

Meanwhile, smart contracts controlling the banking experience provide fail-safes to prevent default or a sharp drop in collateral value by forcing the borrower to provide additional collateral or liquidating the collateral if its value falls below a certain level. Similarly, as the value of crypto assets held as collateral rises, the borrower becomes liable for further loans backed by the existing collateral. Individuals and companies can use the Impulseven Lending network, which is a decentralized solution. After depositing a variety of crypto assets as collateral, users can borrow in stablecoins via the website. By charging low-interest rates, the platform aims to provide additional convenience to borrowers. Borrowers may also borrow stable coins and gain passive interest in the form of VEN token variants on Impulseven’s Lending platform. Stablecoins are often earned as interest or prizes by investors who stake or contribute tokens to the lending pool.

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Julia Sakovich
Editor-in-Chief Julia Sakovich

Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.

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