The nascent decentralized finance (DeFi) sector has ballooned to a market cap of over $137 billion from $2 billion a year ago, but it still accounts for only 5.8% of the entire crypto market.
In order to help the field realize its true potential, millions of new users will need to join DeFi, but as the number of DeFi blockchains increases, so does the importance of creating a seamless user experience for both new and advanced users Increase.
The boom in DeFi, NFT (NFT) and GameFi applications across multiple blockchains represents a huge opportunity for cross-chain aggregation platform XY Finance. Wilson Huang, founder of XY Finance, said: “What we do will be critical for advanced DeFi users. Therefore, we hope to achieve over $1 trillion in transaction growth in 2022.”
“What we’re doing will become essential for advanced DeFi users.”
The rapidly expanding cross-chain aggregator platform has attracted $12 million in funding from some of the crypto industry’s most prominent players on a mission to radically simplify the increasingly complex decentralized funding process.
Why crypto needs cross-chain
Navigating the exponentially expanding world of encryption has never been more daunting. Over the past year, a number of new scaling solutions have emerged on the leading smart contract blockchain, Ethereum. However, high gas fees mean that competitors such as Fantom and Binance smart Chain (BSC) are gaining market share.
According to data from DeffiLAMA, which aggregates the Total Value on Chain Platform (TVL), ETHereum held 94.26% of the TVL of all existing chains in August 2020, but by November 2021, it share has dropped to 65.90%.
This shift helps boost demand for cross-chain asset exchanges. However, token bridging between blockchains is costly, time-consuming, and technically difficult, and there is a threat of price decline and preemptive trading robots.
XY Finance creates a “one-click” solution for cross-chain asset exchange, provides a more streamlined experience, creates an unlimited cross-chain environment, and opens up DeFi, NFTs and GameFi applications to a wider audience . It also enables users to aggregate profits earned from DeFi, GameFi, and NFTs in one secure location.
X Swap, Y Pool and GalaXY Kats
The platform is built on two key components: cross-chain transfer and swap service X swap and liquidity pool Y pool.
X Swap already supports Ethereum, Binance Smart Chain, Polygon and Fantom. It calculates the best cross-chain and transaction paths for users, automates and simplifies the process, and supports exchanges between any asset.
XY Finance’s X Swap and Y Pool. Image: XY Finance
Meanwhile, the newly launched Y-Pool can reimburse swap fees and provide liquidity providers with token rewards. It allows them to manage the liquidity of the same asset across multiple chains.
But XY Finance offers more: it provides a way to gamify decentralized finance, send gifts to its owners through its own play to earn product, GalaXY Kats – 10000 unique Mongoose NFTs, Participate in missions and allow them to access other features on the platform. For example, as GalaXY Kats trade volume on the NFT marketplace OpenSea, new levels, tools and rewards will be unlocked on the platform.
Pushing the play-to-earn envelope
XY Finance has attracted investment from inside and outside the crypto industry, including payments companies and stablecoin operators; crypto exchanges; venture funds, including Infinity Ventures Crypto; GameFi Decentralized Autonomous Organization (DAO); and well-known gaming Developers such as Earnings Union Games and Animoca Brands.
Gabby Dizon, co-founder of Guild Guild Games, highlights the platform’s utility for gaming industry associations that earn rewards from a variety of different games, across multiple blockchains Take the game. “XY’s ability to simplify interactions between blockchains will save transaction fees and provide a better overall experience,” he said.
We are proud to have a group of investors from the core pillars of the industry backing us
We will be at @CopperLaunch #XYFinance$XY #DeFi #CrossChain on December 9th pic.twitter.com/oc7r5kqnn Hosting the long-awaited XY Token IDO
XY Finance (@XYOBAL) December 6, 2021
XY Financial’s commitment to next-generation cross-chain services has enabled the Taiwanese startup to achieve triple-digit growth since its launch last October. Now, it is gearing up for the next phase of expansion, the upcoming Initial DEX Offering (IDO) on Thursday, December 9th. Participants will have the opportunity to hold XY financial tokens and participate in the project’s DAO and liquidity pools.
XY Finance’s Initial DEX Offering (IDO) was launched on Thursday, December 9th. For more information, visit the project’s Discord, Telegram and Twitter channels.
What is DeFi?
The first entry among the top DeFi interview questions would obviously point towards its definition. Decentralized finance is actually a financial ecosystem developed over the Ethereum blockchain network with various protocols and platforms. DeFi helps in easily moving around cryptocurrency tokens. At the same time, it also helps in trading, lending, and borrowing cryptocurrency tokens.
What does the future of DeFi look like?
As of now, there is no specific answer to this question, but the future looks bright for DeFi as it is slowly becoming mainstream. Technological advancement in the underlying infrastructure for DeFi is faster than ever with new innovative ideas popping up daily. 2021 looks like a great year for DeFi seeing the recent developments.
Is DeFi legal?
Yes, almost all DeFi projects or protocols need to abide by financial regulatory measures licenses to function regardless of whether they’re centralized or decentralized. Thanks to DeFi, financial watchdogs (e.g., the SEC) have started to notice the crypto space more than ever.
Is DeFi safe?
Yes, almost every protocol undergoes smart contract audits to ensure the codebase is secure and free from bugs and vulnerabilities. Majority of the popular protocols adopt strict security measures to ensure your crypto assets remain safe. Still, it’s advisable to conduct your due research before investing in any project.
Do I need some kind of cryptocurrency to participate in DeFi?
Yes, you would need cryptocurrency to participate in DeFi. Since Ethereum is the platform of choice, most DeFi projects’ tokens are based on the ERC-20 standard. Hence, it would be better for you to hold some ether for the sake of ease.
Do I need a crypto wallet for DeFi?
Yes, a digital wallet is a prerequisite for you to be able to dabble in the field of DeFi. There are several wallet options available for interacting with DeFi applications — MetaMask, WalletConnect, TrustWallet and Argent being the popular ones.
What are the important benefits of DeFi?
The primary objective of DeFi focuses on resolving the issues evident in traditional finance. Traditional finance depends on intermediaries such as banks. However, DeFi applications rely on code for specifying the resolution of any potential dispute. Subsequently, users have the ability to maintain comprehensive control over their funds. This can help in reducing costs related to use of financial services products to ensure a frictionless financial system.
The deployment of DeFi on blockchain takes away any specific point of failure, and data can be spread easily across various nodes. So, each node has copies of transactions carried out on the network. Therefore, it is difficult to impose censorship and a possible shutdown of service. The most significant benefit of DeFi points out to the improved accessibility of financial services for a broader audience.
How do DeFi applications work?
Another top mention among DeFi questions to ask in an interview definitely points out that it’s working. DeFi works through the development of dApps on a blockchain network like Ethereum and using smart contracts for automation. By using the two facets, DeFi applications could easily accommodate various financial services on a specific network. Presently, there are many notable examples of dApps tailored for lending automated loans known as crypto loans. Many apps related to DeFi also include the creation of stablecoins, investment options, asset exchange, and others available presently.