De Fi, Yield Farming, and Robinia, why are we interested in hearing about this? by Karupanocitizen

This 2021 has been marked as the year in which the De Fi and NFT Games projects have entered the blockchain market with great force, which in my opinion represents a logical development and specialization of the entire cryptographic market and financial operations generated, the market grows and with it the diversification of the services required by it.

Many are the publications whose central themes refer to concepts such as smart contracts, stake, Dex, Yield Farming, and lately an emerging project called Robinia, but would you like to know how these concepts are applied in our daily lives? a De Fi and how could it help us? What is the Robinia Project? Stay with me and together we will learn about these concepts and the great benefits they can provide us.

Smart contracts, the foundation of the entire decentralized financial system.

In simple terms, a smart contract is a special type of algorithm that is stored in the blockchain that can self-execute actions according to a series of previously programmed parameters. All this in an immutable, transparent, and completely secure way. The most used network to create smart contracts is that of Ethereum.

As in the real world, a contract is an agreement between two parties. For example, if you need a financial loan, you go to a bank and after meeting the requirements and accepting the loan conditions, a bank manager approves the loan, this can take hours, days, weeks, and even months.

In the case of smart contracts, the negotiation of the same loan is carried out with a previously designed algorithm, all the conditions of the same are established from the beginning, a convenience of any of the parties cannot be modified and its processing can take seconds or a few minutes.

De Fi, the evolution of the financial system

We understand as a financial system a whole conglomerate of organizations and companies, private and governmental, whose purpose is to manage money, that is; They capture or receive money from savers, paying interest for the use of it, and then grant said funds to third parties, as a loan, charging interest for the money borrowed. The difference between the interest paid and the collection is called the spread and together with the commissions, they represent the profits of these financial institutions. Credit policies (loan conditions and interest payments) are decided jointly by the owners of financial organizations and government representatives of the country where they operate.

The De Fi, on the other hand, have the same operating principle described above, with some very large differences: on the one hand, the credit policies are already predefined through smart contracts who are the ones who manage the execution of the same, the surplus earnings (spread) are distributed among all participants in the process, including savers and loan consumers and are not subject to government regulations, for now. No intermediary (human) participates in the relationship between the person who has the money and the person who needs it, which is why it is known as peer-to-peer operations or P2P.

What is Yield Farming?

All financial entities have different financial services: term loans, mortgages for the purchase of houses, demand promissory notes, term deposits, purchase of debt bonds and a long, etc., In the case of De Fi they also have many financial instruments: staking, swap and of course Yield Farming.

Yield Farming consists of the immobilization of a certain amount of cryptocurrencies, through a smart contract, a change in the payment of a certain percentage of the total of all profits generated by the use of those funds. To make this possible, cryptocurrency pools are created that will serve to finance operations within the De Fi platform, that is: loans, purchase and sale operations, financing of emerging projects, etc. of the platform in which we are carrying out the Yield Farming operations.

What is the Robinia Team's proposal and how does it favor us?

Robinia is a De Fi that runs on the Binance Smart Chain (BSC) network, its main current financial product is Yield Farming. This Project is supported by Blokfield.INC and has representation within the steemit blockchain through the @roadofrich witness as well as validators of the HDAC network of the RIZON blockchain platform.

The Yield Farming offered by Robinia consists of “freezing” funds on its platform in exchange for receiving its native token: RobiniaSwap. The profits generated by the management of the liquidity pool will be distributed among all those who provide liquidity to it, additionally, a percentage of them will be reinvested in the purchase of steem and generation of steem power (SP), which in turn will serve to curate articles within our platform.

The above offers us a wide variety of benefits as members of this platform: first, it allows us to easily access a De Fi platform whose representative is already part of our group of witnesses, on the other hand, through Yield Farming we can increase exponentially the growth of our funds in crypto assets through the profits generated by the fund, we will also have a source of financing for development projects in our blockchain and as if that were not enough we will have significant support in our publications, which will allow us to earn more healing rewards which in turn will allow us to continue our reinvestment cycle.

After the above, what do you think of Robinia's investment project? Are you interested in investments in Yield Farming? Would you like us to delve into any of the topics developed here? I hope to read you in the comment box.

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