This is the future of DeFi banking.

Edan Yago from Sovryn says that the financial system has not always disappeared, but the financial division. Here's how the merging of the two happened.

Don't keep this a secret. The banking industry has changed rapidly, especially with the spread of Covid-19 everywhere. Banks have been around for a long time, and before they knew us, they must have looked different than what we know today and existed when people used gold for their business. And I think that will continue to exist as long as people use bitcoin as their primary form of payment.

With the advent of decentralized finance (DeFi), banks will change a lot. We will see many of our current or historical financial infrastructures rerouted and managed by decentralized systems.

The term DeFi is used to describe financial applications developed by blockchain technology, including exchange distributions, peer-to-peer lending platforms, and wealth management tools. DeFi democratizes finance by making these applications accessible to everyone, giving them control over their money.

DeFi continuous improvement

More importantly, 2021 is causing an explosion in DeFi. Recently, the popularity of financial management has been developed and paid for by banks. And the continued link has caused banks to rethink their competitive advantage.

In general, the best metric for understanding total market power is called TVL, or total cost per unit, which at the time of writing has over $200 billion in assets across the entire market. DeFi protocol. Would DeFi be better? I think that's true from the current trajectory.

work together

However, this does not mean that banks will be finished, there is a financial management foundation to help them stay afloat, and the maturity of DeFi products will keep them afloat, which is convenient for banks and affiliates.

There are many exciting opportunities for banks to provide access to global financial services by bringing customers together or connecting with communities around the world.

“DeFi” competition

DeFi is still in its infancy, so it will be interesting to see where and how things change. Joining or joining the DeFi protocol is the best option as I feel slow and unreliable.

These systems can provide loans at very low rates and banks that can take advantage of the features and capabilities of the DeFi platform can offer their customers attractive financial benefits.

Banks can borrow their own capital or capital from third parties on the DeFi platform to earn interest risk-free. Putting good value on savings is rewarding, but it can take a long time for banks to get access to the technology and understand that consumers are getting it.

Accept DeFi

Whether you are a business or an individual, you face the same issues. Your money loses its value every day. In the past, depositing money into a bank account could get you back, but today that is not the case. Additionally, the consolidation of the banking sector in recent years has seen the demise of small and medium-sized banks and credit institutions and the changing nature of local banking and personal income.

The banking industry has become more bureaucratic and DeFi has focused on banking and financial services with an emphasis on helping people achieve their financial goals, but valid worldwide.

Banks don't have to worry about DeFi, they can upgrade and upgrade as the technology evolves. And in the long run, you don't have to worry because it gives you more control and independence over your finances.

People always have concerns about DeFi, a new concept for most people. And, of course, some of these concerns are not unrealistic. To participate, you must know the importance of doing your own research (DYOR).

The first step to overcoming these fears or anxieties is to learn, to try to understand how the technology behind money management works and, like all new things, can have a learning curve.

DeFi is still in the early stages of development and, as mentioned above, can be risky. Therefore, for the ecosystem to thrive, there must be certain safety barriers to prevent people from inadvertently putting themselves at risk, and this is one of the main responsibilities that banks will take on in the future.