It is important for every person to take care of their finances, with the search for various or new ways to invest is complicated and even more so if you do not find someone who understands the fluctuations of the market. We look for financial agents to advise us on schemes, mutual funds and stocks in the market, in exchange for a cut in their performance. This is a risk, even if the return is more, because these advisors also make mistakes or fail to see the market risk. As a result you receive only a fraction of the money invested.

Cryptocurrencies provide complete control over your assets, offering a secure form of peer-to-peer trading without the need for intermediaries. To this end, DeFi offers individuals control over their own assets, which is achieved through decentralization and blockchain technology.

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What is DeFi?

DeFi is short for decentralized finance, we define it as an open financial ecosystem that includes digital assets, protocols, smart contracts and dApps built on blockchain. All protocols are open source allowing anyone to collaborate and create new financial products, which will lead to a secure, innovative and fast network. Through this, there is a higher return compared to that of the traditional financial system. Because DeFi gives people control of their own assets and so they operate through decentralized exchanges, so they are storing, trading and investing their assets in blockchain securely.

The main option for the DeFi application is the Ethereum platform, of course we know that it is not the only blockchain platform.
In the following, I will give an example based on DeFi:

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Sourse

PAXOS STANDARD TOKEN (PAX)

Paxos Trust Company developed is Paxos Standard Token (PAX) cryptocurrency which is a so-called "stable coin" as it is pegged to and backed by the fully secured 1:1 US dollar. Being approved and regulated by the New York State Department of Financial Services.
PAX is designed to provide greater speed, mobility, flexibility and accessibility to the global system assets, cryptocurrency that is based on the Ethereum blockchain (ERC20 standard), these tokens can be stored, sent and received with any Ethereum wallet.

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Advantages of PAXOS STANDARD TOKEN (PAX)

• PAX is fully backed by the U.S. dollar as the first stable currency.
• PAX provides protection for customer funds because they are held in segregated accounts with FDIC-insured U.S. banks. Verified Paxos customer accounts can buy and resell PAX tokens directly from Paxos.com on a 1:1 ratio with USD.
• It is verified that every month end, the national high-ranking auditing company Withum makes certification of Paxos Standard bank accounts.

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Disadvantages of PAXOS STANDARD TOKEN (PAX)

• Paxos Standard is a classic ERC-20 token, focusing on originality, yet they are not offering new and innovative solutions to the market.
• Customers cannot make long-term profits by saving their investment, because PAX does not generate interest.

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Conclusion

Paxos Standard is a token running on the Ethereum blockchain, which is intended to serve as a bridge for sending electronic money anywhere in the world, quickly and securely.
Paxos Standard is based on a smart contract that controls one-to-one exchanges between PAX and USD. As mentioned above, the entire supply of PAX is backed by fiat held in reserve.
At Binance, PAX is an additional solution to Tether to safeguard the value of assets in order to protect against market volatility.

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