Why Thailand, Turkey, and USA are Leading in Decentralized Finance Adoption

By Edward Moon | Analysis From Moon | 18 Sep 2021

The advent of decentralized finance (DeFi) has revolutionized the concept of investing. 

Today, people are moving away from traditional investing and embracing the more transparent, cost-effective, and high-yielding decentralized finance investing. According to the CEO of Dopple Finance and Twindex, Kowit Charoenratchatabhan, "Nowadays, several investment options such as stocks are easily accessible to everyone. And when they do, the return on these investments might not be able to keep up with inflation rates in many countries which in practice result in diminishing wealth.” 

That's why many people around the world show interest in DeFi which offers stable and flexible investment options such as Stablecoins farming and staking." Dopple Finance is a stablecoin-based DeFi ecosystem on the Binance Smart Chain (BSC). Users swap their Stablecoins to earn high yield at best rates. 

By eliminating intermediaries like banks, brokerages, and exchanges, DeFi is able to provide an efficient service to its community. Individuals from many countries like Thailand, Turkey, and the USA are investing in decentralized finance due to its profitability. Unlike traditional investing, where there are many restraints and regulations, DeFi is a “one for all” ecosystem. 

There is virtually little or no restraint to enjoy DeFi investing. For example, in the United States, the Commodities Exchange Act prevents individuals that have less than $10 million worth of invested assets from participating in swap contracts. Investing in decentralized does not have such restraint on its swap contracts. DeFi investors can easily engage in swap contracts without having millions worth of assets in their wallets. 

Recently, a survey by Xangle revealed that 72% of accredited investors in the United States are planning to invest in DeFi in 2021. In Turkey, there is little or no clampdown on cryptocurrency investments. This has made more investors get involved in the exponentially growing DeFi market. Ismail Hakki Polat, a lecturer who teaches about cryptocurrency and blockchain at Kadir Has University, said Turkish interest in crypto has been growing steadily for years. The fact that the Turkish government is not clamping down on crypto and its offshoots like DeFi is a major reason investors in Turkey are investing in DeFi.  

The Thai government is making moves to protect investors and make the DeFi space in the country safe. Recently, the Thai DeFi project TukTuk debuted on the BitKub chain, according to Bangkok Post. However, the major news was that the TUK token nose-dived from hundreds of dollars to $1 within minutes. Therefore, the Thai Securities regulator is stepping in to ensure investors are protected. 

Aside from the local happenings in these countries, certain global occurrences also help to drive DeFi investing. 


Stability and safety of notable stocks but no dividend distribution

Shareholders of Amazon stocks, Facebook, and Google have never received dividends despite the high-profit margin of these companies. By the end of 2020, these three tech giants made more than $290 billion in their combined cash balance. The high yield of DeFi has given investors a better option to gain a huge annual percentage yield on their investments. It is clearly better to engage in DeFi yield farming than holding onto stocks of Amazon, Google, Facebook, and the likes. 

Despite the high yield potential of decentralized finance, the high elasticity of crypto valuations appears to be the weak link. What if we can combine the high dividend distribution of DeFi and the low volatility of real-world assets like stocks? This will be a match made in heaven for yield investors. The booming decentralized market has given rise to several projects seeking to combine the high yield of decentralized finance and stability & safety of stocks. One of such projects is Twindex. 


Twindex Protocol and its Farming options

Twindex is a decentralized finance platform where users can invest their real-world assets for high returns on investment. Just like the liquidity providers in DeFi platforms such as PancakeSwap, Uniswap stake their crypto tokens. The difference is that instead of using highly volatile crypto assets, investors can use real-world assets. 

Twindex is part of Dopple Finance, a DeFi ecosystem where users earn high yield on their Stablecoins and liquidity. Liquidity providers also receive liquidity pool tokens which they can also stake to earn high yields. Dopple Finance has a market capitalization of $8 million, $20 million in total value locked, and $1.2 billion in total trading volume.

On the Twindex platform, investors can earn 0.25% on all trades. The earnings will be proportional to each investor’s share of the pool. To claim these fees, investors can withdraw their assets from the pool. Some of the stocks available on Twindex include Google, Amazon, Tesla, and Apple. Combining real-world assets and the high yielding capacity of DeFi certainly launches DeFi into the mainstream of investing.

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Edward Moon
Edward Moon

Crypto trader and analyst.

Analysis From Moon
Analysis From Moon

Analysis From Moon

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