The importance of decentralized finance projects to Steem holders who aren’t interested in decentralized finance.

The purpose of this article is to briefly describe the importance of decentralized finance projects to Steem holders who aren’t interested in decentralized finance investments and explain why you should support such projects on Steemit and the Steem blockchain.

While reading news articles about cryptocurrency, I see many stories about decentralized finance. It seems that new DeFi platforms and platform specific tokens appear almost every month. I realize that the majority of the users of Steemit don’t care above decentralized finance. But if you spend a few minutes reading this post, I may be able to convince you that supporting decentralized finance on this blockchain and this platform is good for token value, which may mean a larger profit on your investment.

I believe decentralized finance increases token value. That belief is inspired by these articles:

Source: The Bitcoinist; January 2nd, 2020
Recent statistics revealed that MakerDAO’s tokenized dollar, DAI, has been handling billions of dollars per month in November and December 2019. According to recent information from Dune Analytics, the blockchain-based token, DAI, created by MakerDAO, was seeing major transaction volumes over the last few months. The data shows that DAI monthly transaction volume reached $2.5 billion in November 2019 and over $1 billion in December 2019.
Link: https://bitcoinist.com/makerdaos-dai-monthly-volume-reaches-billions-of-dollars/

Source : Coindesk
Link: https://www.coindesk.com/makerdao-proposes-new-dai-ceiling-after-hitting-100-million-cap
Article summary: November 8th, 2010: The MakerDAO loan system, administered by the Maker Foundation, hit its debt ceiling Wednesday with roughly $100 million worth of the stablecoin DAI issued and more than $339 million worth of ethereum locked up as collateral.

Source: Forbes Magazine
Link: https://www.forbes.com/sites/nickchong/2020/06/27/how-bitcoin-may-see-an-unexpected-boost-from-a-defi-token-bubble-burst/#30591d9a4f1e
Article Excerpt: According to data provider DeFiPulse, the cumulative value of tokens locked in DeFi applications has surged from $1 billion on Jun. 15 to $1.65 billion on Jun. 26—growth of 65% in eleven days. Simultaneously, the prices of tokens related to this cryptocurrency sector have seen rapid growth. Taha Zafar, a crypto analyst, shared the table below on Jun. 18, showing Bitcoin’s performance in comparison to DeFi tokens such as Aave (LEND), Kyber Network (KNC), and Maker (MKR). The data indicates that while Bitcoin is up 80% in the past three months, DeFi tokens have done even better, registering performances in excess of 100% over that same time frame.

Chart:

Thoughts to consider:
The Ethereum blockchain is home to many decentralized finance projects. The largest of these projects is the MakerDao.The MakerDao does over 300 million dollars in transactions per month. The MakerDao project brings value to the Ethereum token by using the Ethereum token as collateral in its collateralized debt business. While many investors buy and hold Bitcoin, others buy Ethereum not just to hold, but to invest in decentralized finance projects on the Ethereum blockchain. These purchases have exerted steady buying pressure on Ethereum. The price has gone up, which raises the market capitalization of the project, which raises its Coin Market Cap ranking. The rise in ranking attracts the attention of news media writers and investors. More articles are written and investors invest. The cycle repeats itself.

So this is a simple feedback loop, driven by market demand for decentralized finance projects. But this current popularity of decentralized finance could benefit your Steem investment in terms of raising the price and increasing your income from your Steem investment. The project decentralized finance project I am asking you to support is Steem-staking. In decentralized finance Steem-Staking is considered an in wallet staking project, which is a common type found in decentralized finance projects, but those projects get their returns from investments. Steem-Staking gets its returns from curation. There are many content creators on Steemit and large supply of content to curate and profit from.

Based on this concept, I ask that you consider supporting @steem-staking as a decentralized finance application of Steemit and the Steem blockchain. See this article for details on how to get started ; https://steemit.com/steem-staking/@steem-staking/new-defi-project-on-steemit-called-steem-staking

@shortsegments