Copy-Trading dApp FNDZ Eases Decentralized Crypto Trading For DeFi Mass Adoption
October 04 2021 - 09:26AM
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Decentralized finance (DeFi) reached over $150 billion in total
value locked (TVL) in the last year. Despite this exceptional
increase in TVL (from under a billion at the start of 2020), the
number of users that interact with DeFi still pales in comparison
with how many people invest in the rest of the crypto market, and
these numbers are a drop in the bucket compared to those posted by
traditional finance. DeFi’s TVL is only a fraction of the two
trillion dollar valuation of the entire crypto market. Furthermore,
the entire crypto market is valued at a figure smaller than just
one publicly traded company on the stock market, Apple. Putting
these figures side by side, one could assert that the growth
potential for DeFi is astounding. That being said, peer-to-peer
financial services delivered through blockchain technology may have
a bullish future ahead, but they will need an extra push to
increase their adoption beyond the tech-savvy crowd. This is where
the copy-trading decentralized application (dApp) FNDZ is opening
DeFi’s doors to mass adoption by providing an easy-to-use platform
for learning how to participate in token swaps on decentralized
exchanges (DEXs) by following expert traders. Shifting the Rising
Interest in Crypto Markets Towards DeFi Social trading platforms
have helped increase the number of retail traders over the last
decade, and copy-trading has become an incredibly popular way for
new traders to learn about markets. FNDZ is providing a similar
service for crypto trading that eases users’ entry to DeFi through
its decentralized and transparent copy-trading platform, so users
don’t have to make the journey into DeFi by themselves. Valentino
Cremona, Operations and Tech Lead at FNDZ, says, “Moving users away
from centralized services and towards decentralized trading is a
major step forward for the mass adoption of DeFi. FNDZ ensures the
trustless benefits of blockchain technology can be harnessed by
newbies through a user experience that rivals most centralized
exchanges (CEX).” Differentiating User-Friendly DeFi from
Centralized Platforms Although FNDZ has been developed to match the
ease of using a CEX, decentralization and transparency set FNDZ
apart from centralized trading platforms in several ways.
Centralized platforms offer their services off-chain and can levy
hidden fees, and these fees can eat away at any profits made
through trading. In addition to chipping away at profits, these
platforms expose investors to unnecessary risks through the use of
contracts for difference (CFDs). In short, investors do not retain
custody of the assets they buy through their trading platform when
signing a CFD. Consequently, the platform’s bankruptcy,
mismanagement, or security flaws that lead to a hack could mean
investors may witness their holdings disappear overnight. Robin
Ubaghs, Marketing & Growth Lead at FNDZ, says, “FNDZ solves
these problems through its embrace of decentralization. Users
retain custody of all of their assets when using FNDZ, and the
platform allows users to interact with its copy-trading services
through an easy-to-use dApp run by a distribution of audited smart
contracts, instead of just one contract that can attract exploits,
for added security.” Benefits for Traders of All Levels Fees for
copy-trading services are transparent and posted upfront by the
expert traders each user can follow for guidance in the crypto
market, and trades are made through DEXs where transactions can be
tracked through on-chain data. Here, it’s important to note that
DEXs operate as automatic systems that ensure with 100% certainty
that no intermediary can interfere with a token swap, so trades are
always executed fairly and according to code. Another benefit of
leveraging an open-source platform like FNDZ is increased access
and rewards for traders that want to monetize their following. For
example, FNDZ allows traders to receive a commission for each user
who wants to copy their trades. A trader can then stake FNDZ to
earn fee discounts and rewards from each of their trader’s profits.
The best part is anyone can create a trading vault and the most
successful vaults will be ranked and indexed by an algorithm to
ensure transparency and recognition are both met. Complete
Decentralization from the Bottom to the Top FNDZ ticks all the
boxes for what makes a DeFi platform such a powerful tool, and it
strives to make this powerful tool accessible to everyone no matter
what their prior knowledge of DeFi. In a further nod towards DeFi
standards, FNDZ will operate as a decentralized autonomous
organization (DAO), which means there won’t be a traditional
corporate hierarchy running the platform. Rather, in lieu of a CEO,
anyone who holds $FNDZ tokens will be granted voting power over how
the platform operates in the future, making FNDZ a platform run by
its members, for its members. DeFi is growing, and the goal of the
DeFi community is to get as many people on board as possible. Since
DeFi depends on the power of people to make the system work, the
more people who participate in DeFi, the better DeFi works for all
who participate. Geared towards this goal, FNDZ’s DeFi-centric
copy-trading platform could be the catalyst that finally brings
DeFi to the masses. Image by Sergei Tokmakov
Terms.Law from Pixabay
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