DeFi is Getting Into Everything | Grit Daily News

Crypto isn’t just about simple financial tools anymore. Any project can be a DeFi project. Here’s how.

The current crypto bear run was finally seeing a few flecks of green a couple of weeks ago after the big crash in May, but the two recent dips shut those hopes down. Some people believe that plunging through multiple death crosses puts us firmly in bear territory, and others believe that we have hit rock bottom, and are due for a correction. Either way, the extreme volatility has many of us on edge, particularly the influx of new investors. In this environment, any bad news has a multiplicative effect, and good news is met with skepticism. 

The main reason for this is that cryptocurrencies only give a return on investment when sold. You might consider APY and staking rewards. On one hand, it’s great that the blockchain puts the power of the banks in the hands of the people. We provide liquidity for each other and facilitate our own transactions. On the other hand, if the price of the currency drops below the value gained through these interactions, then those gains are not relevant. 

The solution to this volatility is to attach crypto to real-world goods and services that people need or use on a daily basis. Most crypto companies are designed to operate within the crypto space. DEXs, exchanges, oracles, wallets, IDO platforms, NFT platforms, and other financial or blockchain-oriented tools were all created to work together and support each other. While this has created an incredibly fertile ground for new projects to grow and flourish, the industry is completely isolated from the real world. It relies on incoming investments rather than generating its own cash flow. 

Fortunately, there are already a few projects that are breaking the mold and attacking the real world head-on. These companies create value independent from investments and can bring ROI regardless of the ups and downs of the crypto market. Soon, crypto will get into everything. You will use services you had no idea were connected to the blockchain. 

And with the new ability to tokenize equity in a company, more and more projects of all sorts will soon be moving into crypto. Companies with tokenized equity have the ability to give dividends to their token holders. By generating income outside of investments, investors can buy and hold without fear or anxiety. That’s because added value is coming from within the company itself. There is no need to hope other investors jump in so that you can sell.

It’s time for a more stable environment. Here’s how it starts. 

Illiquid Assets

Wall Street investors have found ways to convert many different assets into liquid, tradable forms. The way they minced and diced gold into a million different tradable options is quite impressive. And it demonstrates how assets in the real world can function as financial assets in a digital ecosystem. Although the atomization of gold is somewhat…