What Is DeFi 2.0? Why You Need To Consider PolyCub

Late 2020, DeFi saw a huge success as a lot of people flooded into that space. This was something different, they have not seen this before, and it created a complete new way of earning. The DeFi means, Decentralized Finance, which allows people to stake their tokens and earn rewards, they also earn rewards for providing liquidity in the liquidity pool. So it’s basically giving you free money just for holding your assets in the space. It’s not centralized and doesn’t need a permission from third party, it is cheap to use, if you are using a cheap blockchain like BSC or Polygon. It’s basically just great to use, but most things can’t be stuck on just one particular phase of technology. Upgrade needs to be done, because humans are never satisfied with their innovations and creation.

There are some flaws associated with DeFi, in this case, I will be calling it DeFi 1.0. One of the reasons I don’t use the Liquidity Providing pool is because of impermanent loss, this is where differences in the volatility of the liquidity pair causes you to lose some of your tokens. I am not ready to take that risk, but people seem to like that. One of the flaws of using DeFi 1.0 is the scalability, especially when it’s on a blockchain with low scalability, like Ethereum, high gas fees is another flaw.

But Here comes DeFi 2.0, a supposedly upgrade of DeFi 1.0, with better features, and my most favorite feature is the Collateralized Self Repaying Loan. This is where you stake a collateral, then take a loan, and watch the interest from your collateral help you pay for those loans. Can you see how awesome that is? This is just another utility of DeFi 2.0, something the we are expecting from polycub real soon.

That is just one feature that we are expecting from DeFi 2.0, DeFi 2.0 also tries to protect investors assets in terms of volatility and probable loss due to impermanent loss. DeFi 2.0 also tries to look at safer smart contracts thereby help reduce the risks found in DeFi 1.0.

On polycub we have the xPolyCub and the vexPolyCub feature, two features that lets you earn higher and be in control. How is that possible? Hold my beer let me explain, so you know how you can stake your tokens on DeFi 1.0 and only get rewards, with polycub, you can stake your polycub on xPolyCub and get more polycub but this time the value of xPolyCub to polycub increases. The price is always going up, it never comes down no matter what the market is. Mind you the value is not compared to dollars in this case but compared to polycub. The moment you stake your polycub to xPolyCub the value of your xPolyCub to polycub never remains the same anymore. You keep getting more due to the % APR and the value to polycub keeps increasing incentivizing more people to buy and hold.

You get in control through governance voting and having the vexPolyCub gives you more governance power. This way you can help influence changes about to be made in the project.

Posted Using LeoFinance ^Beta