DeFi Benefits - Assignment

DeFi 101 Course 2021
#1

Come up with one more benefit and share it in the forum. Then respond to at least one other benefit from another community member.

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#2
  • Fully Transparent, thanks to blockchain :nerd_face:
  • No Middle Man
  • Trustless
  • Permissionless.

Carlos Z

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#3

!:)Private , trustless, permissionless, anonymous.

2:) No middle man. There is no need for a middle man as all transaction are initiated by the user directly.

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#4

It has cheaper transaction fees you don’t have to worry about tax long term investing

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#5

Great points brought up Carlos

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#6

Tokenization and removal of custody costs or delegated-custody risk.

Access to some asset/party :stuck_out_tongue: by holding (effectively) a serial number in your wallet which gives you access to something in a new way.

For example,
The ability to have zero-knowledge proof of anything…

This could be an 18+ card, a driver’s license, etc.
You don’t necessarily need to prove who you are - so long as you are certified by your jurisdiction that you fit within this class - whatever that may be.

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#7

An additional benefit is governance, where owning tokens and staking them gives you voting power for future improvements/changes to the protocol (for some projects).

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#8

User transactions are tracked, but user identity is protected.

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#9

It can create an investment alternative to the stockmarket, which is commonly referred to with the acronym TINA (there is no alternative).

#10

Tax optimisation when moving to stable coins instead of fiat and borrowing instead of withdrawing cryptos and even generating yields with deposits in different pools.

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#11
  • Open source: everyone can see the code used in smart contracts & protocols
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#12

Hi! What do you mean with “access to some asset by holding a serial number in your wallet”, airdrops for having used a protocol for example?

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#13

Benefit of Defi?

Becoming your own bank
Competing with the banks
Removing oneself from the ponzi legacy banking system.
Earning actual yield as apposed to earning 0.01% in a savings account with xyz bank.

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#14

Can you explain tax optimization you described?

Do you live in a country where crypto-crypto TX’s are not taxed?
Because it makes zero difference for me if i move to stables coins or fiat,
All are marked with capital gains.

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#15

In case you realize a gain converting ETH to USD it is a taxable event while if you provide your asset to a lending platform and borrow against it - it is a loan which is not taxable in Austria. So if I need cash while holding Crypto it provides a means to avoid to convert your ETH and show capital gain. Actually keep your Crypto which might occasionally appreciate. No financial advice! Just my personal understanding.Hope this clarifies my understanding. KR, Andreas

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#16

The ability to pool your funds with others to be able to take advantage of an investment or opportunity that traditionally needed a large pool of capital for someone to be involved.

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#17

I look forward to the day that we no longer need to deal with the legacy system financial institutions.

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#18
  1. You can get better returns than a normal bank account.
    It allows individuals to use smart contracts to loan to one another even when these individuals don’t know each other.
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#19

It is interesting to see how different countries tax crypto. It is good to know there are ways to avoid taxation. In US is the same.

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#20

There is complete transparency in transactions and in the code used for DeFi protocols.

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