Why DeFi Trading Is Expanding Despite Harsh Economy

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by Julia Sakovich · 4 min read
Why DeFi Trading Is Expanding Despite Harsh Economy
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Companies like Nimbus have set the pace for an excellent year for DeFi. The Nimbus DeFi ecosystem delivers strategic solutions targeted at solving the shortcomings plaguing the DeFi space.

DeFi (which is short for Decentralized Finance) was one of the top trends in the blockchain space in 2020. In January 2020, the entire DeFi space was valued at only 680 million dollars. By December 2020, the figure has skyrocketed, reaching a total of 15.34 billion dollars. The number of products, services, and other platforms that have sprung out of this growth is in their hundreds, and it is getting hard to keep up. This unprecedented exponential growth has marveled experts and even critics around the world.

The traditional financial system is controlled by the government using its regulatory bodies. These bodies present a long list of hitches that sometimes make transacting costly, tedious, and ultimately inaccessible to more than 25% of the world’s population. Decentralized finance presents an alternative to traditional and centralized financial systems. 

DeFi makes it easier, faster, and cheaper to perform financial transactions with anyone from anywhere in the world. Compared to other conventional options, DeFi has much lower barriers to entry. This bodes well for the unbanked. Decentralized finance platforms have the ability to make financial services accessible and attractive for more than 1 billion people. 

Some of the products and services that have accompanied the proliferation of DeFi are platforms that allow users to trade, invest, and even receive loans. These platforms typically have very low entry costs and are available to users from anywhere in the world. DeFi investing is one of these products that has pushed to the forefront of the DeFi revolution, and it isn’t showing any signs of waning soon. 

Nimbus is a platform whose foundation principles help understand why DeFi space keeps expanding even when the economy is in shambles. Just over a year old, the company has already served a community of more than 50,000 users with financial services within the Blockchain domain. Nimbus is taking a great step forward by moving to create its DeFi ecosystem to deliver even more opportunities for users to make profits. They have their best step forward already, with the much-awaited official Nimbus platform and their NBU token launch on 27th January.

The entire Ecosystem will comprise four innovative dApps with which users can leverage crypto assets, access startup financing, peer-to-peer loans, crypto arbitrage-trading, and even IPOs. The company is building these four dApps around pre-existing financial tools that have been tested and trusted to generate returns. A DAO (Decentralized Autonomous Organization) shall control the three tokens that drive the four dApps in the Nimbus Ecosystem. The Nimbus DAO is an organization that is represented as a set of rules that are transparently encoded in a computer program. It facilitates and automates all transactions that will occur within the Nimbus DeFi ecosystem. 

The four Nimbus eco-system dApps each represent unique services for users. The first is a Crowdfunding dApp, for example provides an avenue for users to invest in startups. Users are able to efficiently and securely invest in a variety of options and, in the long run, diversify their portfolio. One of the merits of the dApp is that funds are not invested until certain performance indicators are met. As a result, investments are made in only the most viable enterprises. 

The second dApp is an IPO Hub app that allows users from anywhere in the world to participate in the most coveted IPOs. This participation is made possible through liquidity pools. A scenario that was once thought to be impossible is now made possible without extra fees and charges. 

The Nimbus Crypto Arbitrage application currently serves about 50,000 users. This application has been instrumental in facilitating the rapid growth of the platform because of its functionality and accessibility. They explain that many upgrades remain on the way for the Crypto Arbitrage application, as there are future plans to decentralize it. The Nimbus P2P lending dApp leverages tested and proven lending mechanisms to DeFi. It leverages the best practices of digital risk mitigation, while offering several lending and borrowing tiers that are based on risk-adjusted criteria and facilitates direct matches as per location.

Companies like Nimbus have set the pace for an excellent year for DeFi. The Nimbus DeFi ecosystem delivers strategic solutions targeted at solving the shortcomings plaguing the DeFi space. Despite the explosive growth of DeFi in 2020, the crypto space is primed for even more growth in 2021. 

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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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