Decentralization. The role of DeFi on GameFi
Last updated
Last updated
The rapid growth of cryptocurrencies contributed to the systematic emergence of new directions in the market. There are more effective solutions for money management and earning on investments in cryptocurrencies. 2020 was the year of DeFi and gave rise to the rapid development of decentralized exchanges, multifunctional dApps, protocols and crypto aggregators, which certainly further fueled interest in the entire industry. With the help of DeFi, investors have gained new opportunities: staking (Staking), farming (Yield Farming), crypto lending (Lending) and a number of other optional solutions for using cryptocurrencies to generate high income.
One of the main advantages of decentralized finance over traditional bank deposits is the rate, which for certain trading pairs can reach hundreds and thousands of percent per annum.
DeFi is a key mechanism for creating value for the entire GameFi industry, because the current trend of gamification on the blockchain is the direct interaction of video games with Decentralized Finance, which encourages users to receive passive income in games based on various blockchains.
In favor of the fact that the segment is an important component of crypto games, it should be noted that the capitalization (Total Value Locked) of the DeFi market, according to Defillama, is more than $240 billion. At the same time, the peak value in early December 2021 reached $280 billion, and in May of this year, the amount of blocked funds in USD was only $89 billion.
The popularity of DeFi is so high due to the fact that the technology allows users to trade, exchange, and interact without intermediaries or banks, and the industry is not subjected to complex regulatory processes on the part of government agencies.
With the desire to promote decentralized principles to the masses and the desire of blockchain developers to provide people with more opportunities in the digital marketplace, DAOs (Decentralized Autonomous Organizations) have appeared, which have contributed significantly to the productive interaction aspects among the users. Through DAOs, holders of native tokens have been empowered to influence the development of blockchain developments through governance mechanisms and receive other rewards for holding those tokens.
The DEFI WARS development team believes that the DeFi segment has not been fully explored. Therefore, we are happy to make a significant impact on the development of the industry around the world, providing a growing user experience for users of all levels!
