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Once users set up their DeFi wallet and acquire FNDZ through their first DeFi transaction, they will be able to use FNDZ’s dApp to follow a stable of over 100 trading experts as they leverage DeFi trades for increased profits.
Traditional finance (TradFi) passed a huge milestone in 2020. Last year, the value of global assets under management (AUM) in TradFi rose above $100 trillion for the first time in history.
In the blockchain community, another huge milestone was reached around the same time, albeit clocking in at a much lower figure compared with TradFi’s AUM. Decentralized finance (DeFi), a peer-to-peer financial system that exists thanks to blockchain technology, reported a total value locked (TVL) of one billion dollars for the first time.
Fast forward about a year and a half, and DeFi’s TVL stands at a figure approaching $200 billion today. That’s a 19,900% gain over a relatively short period, and it seems like breaking the trillion-dollar mark will be inevitable for blockchain technology’s people-powered DeFi community.
DeFi Needs an Easy-To-Use Service to Reach Majority Adoption
DeFi is poised to capture an increased share of the financial market, and DeFi’s TVL could theoretically one day overtake TradFi’s AUM. Who wouldn’t want to be part of a financial system that offers higher yields than TradFi and also earns revenue for its users instead of funneling fees to bankers, brokers, and other middlemen?
In order for DeFi to reach numbers anywhere close to TradFi’s record-breaking trillions, a lot more people will need to jump on board with the technology that makes DeFi possible. The rise of blockchain technology has been compared to the second coming of the internet, and this comparison has been made for good reasons. Decentralized networks, such as blockchains, will be responsible for ushering in advancements like the decentralized applications (dApps) that make up Web3, the next generation of the world wide web.
If blockchain networks are expected to follow a similar path to that of the internet, it could be decades before DeFi grows out of niche culture. Few people remember using the text-only internet when modem speeds were measured in bauds. Admittedly, that’s probably due to the fact that technology wasn’t very user-friendly back when the internet first saw daylight.
It wasn’t until consumer-facing services like America Online (AOL) debuted in the 1990s that using the internet became mainstream enough for Tom Hanks and Meg Ryan’s email-fueled romance to have a plausible leg to stand on in the 1998 film You’ve Got Mail.
The distance between You’ve Got Mail and the birth of the internet spans over three decades, and the distance between DeFi and the birth of blockchain technology (Bitcoin was launched in 2009) has only covered a third of that timeframe. The first mention of DeFi was dropped in a 2018 Telegram chat between blockchain developers, so DeFi is most likely in the early adopter phase of its technological life cycle.
Despite massive increases in TVL over the last year, DeFi is still ripe for exponential growth. However, in order for DeFi to break into mainstream adoption and realize its potential, it will need a push from decentralized services with user-friendly UX/UI that can introduce novice users to the power of DeFi firsthand without a steep learning curve scaring them away.
FNDZ Builds a Decentralized Copy Trading Platform for Onboarding DeFi Newbies
Copy trading has become a popular option for retail traders looking for guidance as they enter the crypto market. Following this trend, one crypto dApp, FNDZ, is launching a copy trading platform that not only introduces users to trading crypto for a profit but also lowers the bar to entry for participating in DeFi.
In addition to introducing users to trading crypto and DeFi, FNDZ’s DeFi-powered copy trading platform lowers costs, reduces risks, and increases the transparency of fees compared to similar services provided by centralized exchanges (CEXs).
FNDZ’s Operation & Tech Lead Valentino Cremona says, “Centralized copy trading services are a lot like AOL in the 1990s. AOL gave users access to its version of a highly centralized internet, and the company made accessing websites expensive by charging minute-by-minute for surfing a world wide web that was declared free to the world in 1993. CEXs are embracing similar tactics by offering copy trading services replete with unnecessary fees and hidden costs.”
Robin Ubaghs, Marketing & Growth Lead at FNDZ explains, “Many traders who set up copy trading accounts with CEXs do not retain custody of their assets, which means if a CEX gets hacked (an unfortunately common occurrence), or if a CEX declares bankruptcy, then users are out of luck when trying to reclaim assets that they never actually possessed.”
FNDZ provides its users with step-by-step instructions for getting started on their journey through DeFi. Once users set up their DeFi wallet and acquire FNDZ through their first DeFi transaction, they will be able to use FNDZ’s dApp to follow a stable of over 100 trading experts as they leverage DeFi trades for increased profits.