Sirwin
Sirwin
Source from Google.

To Understand DeFi, Read this📌

By Web3Gazillion | Joeofweb3 | 20 Apr 2024



Did The Banks Really Treat George Fairly, or Did They Cross The Line?

 

George owns a business in the eastern part of Australia.

 

He sells Jewelries.

 

The quality of the jewelry he sells made his business gain traction.

 

Now, there's a need for expansion, so he doesn't lose his potential customers.

 

But George had an issue,

 

He did not have enough money to facilitate the expansion of his business.

 

Then he remembered one of Robert Kiyosaki's quotes: "Use debt to get rich."

 

He ran to his friends for help…

 

Unfortunately they were also going through harsh financial situations and had no spare cash to disburse.

 

He had a 'Final Option'

 

To seek help from the bank.

 

George, like any other business owner, would do, went to the bank and requested for a loan.

 

A loan form was given to him and other bank protocols were carried out.

 

After the process, the bank told him that they would get back to him soon enough.

 

After 3 days, he received an email from the bank stating that he is not eligible for the loan because he's not a citizen of the country where the bank operates.

 

George had to give up the project of expanding his business.

 

Because the bank was literally his last hope.

 

A week later, George shared his ordeal with his Neighbor Kay.

 

Kay was quick to grab and relate to the story because he once had the same encounter.

 

Due to that experience, he was forced to bury himself in research for an existing and better alternative.

 

That was when he came across the word DeFi from a YouTuber who had the same experience and shared his story in a video.

 

This got him to deep deep about this technology that's making waves.

 

It was during his research that he found out that the whole concept of DeFi was built on the idea of FULL OWNERSHIP of users, data, and money.

 

He got more curious, and this led him to find out that in DeFi, he can break the matrix by taking the following steps:

 

1. By converting his Fiat to a stable coin and staking it in a trusted DEX or CEX, he can earn a minimum of 7.11% interest per annum, far surpassing the paltry 0.55% offered by banks. "What a steal!" He said to himself.

 

2 By making use of stablecoins for cross-border transactions, he realized he could sidestep the exorbitant bank fees with ease. These transactions are lightning-fast, and securely recorded on the Blockchain network. It's like finding a secret shortcut in the financial world!

 

His third discovery swept him of his feet.

 

Kay found out that he can apply for a loan, offer collateral, and swiftly access the funds he needs—no matter his location or origin. With just a phone and internet connection, financial empowerment is just a tap away!

 

This technology, powered by smart contracts, bypasses middlemen, intermediaries, and paperwork, allowing him to conduct financial transactions seamlessly anytime, anywhere.

 

After sharing this exciting information with George, Kay encouraged him to dive into the world of this new technology.

 

Filled with enthusiasm, George turned to Kay and asked, "Where do I begin?"

 

Kay paused thoughtfully before responding.

 

"George," Kay began, "like everything in life, there are both pros and cons to consider. It wouldn't be fair to highlight only the positives without addressing the risks and how to navigate them."

 

Intrigued, George inquired further, "What are the risks, and how can I protect myself from falling victim"?

 

 Follow me on X @Real_A_J_C. I'll be releasing a thread on the risks involved in the DeFi space, how noobs like me can avoid pitfalls and outsmart the bad actors."

 

How do you rate this article?

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Web3Gazillion
Web3Gazillion

Hi there! My name is Anyanwu Joseph (Web3Gazillion) I'm a full-time web 3.0 content writer. My main aim and drive are to make sure that I create content around the crypto space, that can be understood by a newbie. Expect more simplified crypto content!


Joeofweb3
Joeofweb3

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