The hottest topic in the world of cryptocurrency and blockchain technology in 2020 has been DeFi (Decentralized Finance). So are they worth the hype? The simple answer is yes. The current growth rate of DeFi is nothing short of stratospheric. Data from defipulse.com reveals that the DeFI industry has blown up with over $8.11 billion (September 2020) locked up already as more and more people are exploiting the high-interest rate potential that DeFi embodies. Many DeFi tokens have entered the market in 2020 alone. And DeFi tokens have the highest trading volumes in many exchanges.
The DeFi hype is reminiscent of the ICO hype of 2017/2018 and being dubbed a bubble by Crypto enthusiasts- a term that meant a hype around a Crypto project or trend are unsustainably high and will eventually crash back down. However, this is mostly applicable to projects with none or questionable use cases who are derailing from DeFi’s massive potential as an alternative to traditional finance to being hijacked by investors who want to game the system for high-interest rates through such practices as yield farming. But DeFis like ICOs is still a gamechanger that embodies awesome benefits when deployed for its rightful purpose which is what DafriBank’s DBA tokens will implement. Decentralized Finance or DeFi takes the components of traditional finance and replaces them with smart contracts leading to a wide range of benefits. Building more complex financial systems using blockchain smart contracts (codes that execute when certain conditions are met) enables individuals to participate in such financial activities like loans, collateralized debts, and fundraising outside of the traditional banking system while serving as a safety net against inflation.
DeFi also provides an easy way to supply money to earn interest. Lenders deposit money which is held in the smart contracts. Interest rates, loan duration, and other fine details are programmed in the smart contracts which automatically executes to send out interests as agreed. This is what DafriBank sets out to achieve by integrating DeFi protocols into its DBA tokens. Our DeFi Lending system will be deployed before the commencement of our gradual 3% monthly distribution of DBA tokens to allow token holders to increase their DBA holdings by moving them into our DafriBank DeFi Lending System. This will take place after the 13 months mandatory locking structure as explained in the later sessions of this whitepaper. What sets DafriBank’s DeFi Lending system apart from other offerings in the market is DBA’s many profitable use cases and a locking structure that further incentivizes its growth and unlike other projects that depend on empty hype, the hype around DarfiBank is warranted and genuine.