Gungnir: A feast of DeFi opportunities
The outbreak of the new crown epidemic in 2020 has brought authentic damage and turbulence to the world economy. However, looking at historical development, it is not difficult to find that in the Great Depression, there are often wealth opportunities that are rare in a century!
In this year's blockchain industry, it can be said that major events have occurred frequently: ETH2.0, Odin mainnet launch, Polkadot, Filecoin, DEX, DeFi and halving renewal, CSW closure and Thor (Thor) launch .... These highly anticipated industry catalysts, which have been completed or are being completed, make the value of blockchain technology shine in this chaotic world.
DeFi is definitely the biggest hot spot of this year. It has suddenly emerged and quickly became the most attractive section in the entire blockchain industry. Capital favors, platforms flood in, and huge traffic has given it a shiny crown. It seems that all projects are desperately rubbing its hot spots. Regarding the rise of DeFi, some people call it the "new financial revolution movement", others call it "the engine of the next bull market in the blockchain", and some even call it a "Lego toy". So, what is the sacred DeFi? Can a super bull market be born? How can ordinary people participate in it?
What is DeFi?
DeFi stands for Decentralized Finance, namely: decentralized finance, also known as open finance. DeFi is a big concept. Simply put, it is trying to use blockchain technology to achieve disintermediation and eliminate rent-seeking middlemen, so as to improve the current financial system from all aspects to solve the natural shortcomings of traditional finance and centralized finance. board.
In the traditional financial service system, financial services are mainly controlled and regulated by the central system, with the main purpose of solving financial system inequality, sources of review procedures, lack of transparency, and potential transaction risks (the risk of not fulfilling contractual obligations is bad debt), etc. , Involving subdivisions including deposits and withdrawals, loans, and derivatives transactions. For example, such as the most widely used payment and transfer sector, under the traditional financial system, cross-border payments and transfers need to be notified to the financial institution first, and then the financial institution will contact the foreign financial institution for the transfer and clearing business. However, in the decentralized financial world based on blockchain technology, the corresponding value can be directly transferred to the other party through cryptocurrency, without any intermediary agency to provide services. This decentralized financial method not only greatly increases the speed of transfers, but also greatly saves time and material costs.
As an ordinary investor, DeFi can be simply understood as an emerging concept, like the stock market. When a new concept becomes popular in the market, the stock market will also have many emerging concept stocks. The DApp of the 18th year of the fire is such a new concept, and now DeFi is also the case, most of DeFi is deployed and carried out on ETH, which directly drives the surge of ETH this year.
DeFi and decentralized ecology
There is a very interesting phenomenon in the currency circle. At present, many people hold BTC and ETH as a decentralized asset, but most of the transactions take place on a centralized platform, which is a paradox. thing. In the DeFi ecosystem, coins and coins can directly realize decentralized transactions. The core of the birth of DeFi is to establish a brand-new financial ecosystem without any central authority, which can be used by everyone in the world anytime, anywhere, without barriers to entry. In other words, in the DeFi system, users can enjoy independent control over personal assets and data while obtaining financial services; it is carried out without a centralized entity-storage, loans, transactions, insurance, etc.
As the "back wave" in the blockchain field, DeFi is actively exploring the unrealized financial service revolution of traditional financial technology on the basis of blockchain applications! The reason for the rise of DeFi is that people need a more convenient and reliable way to meet more diverse financial services, especially those with various crypto assets in their hands, hoping to use these assets to achieve more financial functions and create greater The urgent need for interest has made the exploration of establishing a decentralized exchange and stable currency in a decentralized world a new concern. With many well-known venture capital funds entering the market, such as Andreessen, Horowitz, etc., projects that focus on eliminating financial service intermediaries have a new collective name and attribution system, namely DeFi decentralized finance. Subsequently, DeFi innovators tried to move traditional financial products to the blockchain, forming the current DeFi ecosystem based on asset management, prediction markets, and trading markets.
The decentralization of currency issuance and storage only provides a solution for point-to-point settlement, which is far from enough to support financial services with rich scenarios, and the decentralized lending protocol brings DeFi into a further open blockchain world financial system.
Advantages and changes of DeFi
The core advantages and characteristics of DeFi do not lie in decentralization itself, but in permissionlessness, censorship resistance, and composability. For example, the liquidity and flow of stable currency swaps, loan arbitrage, DEX and other aspects caused by COMP mining have created a record high, which also provides a new direction for the development of the entire blockchain.
For the above summary, we can find that in the DeFi system:
1. Anyone has access rights and no central control rights;
2. There is no need to trust any intermediary agency, and the new trust machine and code are rebuilt through smart contracts;
3. It represents a new way of thinking and form, which will bring a huge impact and unlimited possibilities to the existing industry.
At the same time, we can also feel the three most important changes DeFi has brought to us, namely:
1. There are native assets on the blockchain, which can improve settlement efficiency and reconstruct governance across entities;
2. Where there is a lack of centralization, a multi-agent coordination method is provided;
3. All agreements are open source. Anyone can collaborate on the agreement to build new financial products and accelerate financial innovation under the network effect.
In general, the goal of decentralized finance is not to decentralize itself, but to be more free, open and fair, which is the best way to achieve inclusive finance.
In the first half of 2020, capital and technology are lean up quickly, and DeFi has achieved an ecological explosion. The original blockchain projects are replaced by a new wave of experiments and innovations. Various new applications are emerging in an endless stream, presenting us with many unimaginable products. In the hottest stage of the DeFi field, the total market value of its tokens exceeded 6.2 billion US dollars. DeFi has undergone evolution, experimentation and integration, and some specific trends have emerged and become the most dazzling stars in the blockchain market. At the same time, we also see The DeFi ecosystem is still on the way to establish the most attractive value token.
The most attractive value token mentioned here means that the issuance of tokens must have the corresponding value support. Gungnir (Gangnir, referred to as "Gang Ge") is Odin's big move in the DeFi field just now, that is, the governance token of Thor public chain issued on Odin Chain. Based on the dual blessing of Odin's currency value and Thor's public chain governance power, I believe Gungnir will soon become the leader of DeFi!
Gangneil born with the "golden key"
Gungnir is the first DeFi project based on OdinChain as the governance token of Thor public chain. The total amount of Gungnir Gungnir is 2.1w, and one or more Gungnir Gungnir can participate in the governance of Thor.
Gungnir is obtained by pledged Odin coin mining. Pledge 10,000 Odin to produce 1 GUNG "Brother Gang" a year.
"Brother Gang" has been able to gain such strong attention and enthusiasm from the community since its incubation, thanks to Odin's large and excellent community foundation. Thor miners participate in Thor's public chain governance by staking Odin, while Odin and Thor provide token value support for "Gangge".
At present, in the governance of most DeFi or public chain projects, community users vote based on the number of native coins held. This method is easy to generate centralized nodes. Raytheon has always been centered on miners. Gang's distribution model can ensure that Raytheon's public chain governance rights are in the hands of the miners themselves, and the miners who have obtained governance rights have a sense of responsibility and mission. Of course, at the same time, Raytheon's future governance needs will also promote the current Odin holdings.
In addition, "Gangge" as a governance token itself will also generate a premium. Ganggonier can also be used as a calculation voucher to measure the holding period of Thor and Odin. It is an incentive token distributed according to the holding time and weight of odin. 0 reserved, the total amount is small, only 2.1w pieces. There is a shortage of governance places for the tokens of Gangnier. The community base of Odin and Raytheon determines that this 2.1w is doomed to be in short supply. The imbalance of supply and demand will cause market prices to rise.
summary
A complete DeFi ecosystem should include stable coins, smart contracts, financial protocols, decentralized applications (DApps), etc. These are the underlying infrastructure of open finance. As a public chain project, Odin Chain includes all the underlying infrastructure required above. To say that Gungnir was born with a golden key, I think this description is very appropriate. The purpose of decentralized finance is to use the key features and functions of the blockchain to provide financial services without barriers to entry, creating a more free, open and transparent financial system, which includes decentralized financial markets and decentralized financial markets. Centralized financial institutions, asset holders and users. With the laying of these infrastructures, together with the establishment of a strong protocol network interconnection between various protocols through composability, security, privacy, and transparency.
Gungnir rides the DeFi outlet, with the help of Odin and Thor, the future is unimaginable!