An Introduction to Investing in DeFi from a Platform You Own

An Introduction to Investing in DeFi from a Platform You Own

Blockchain technology has changed the world of finance forever. The advent of Bitcoin showed that it is possible to take full ownership of one’s finances without the need to rely on a third party. With time, the Bitcoin experiment has proven successful and has helped solve many of the issues and limitations associated with legacy finance.

Bitcoin and other digital assets have become a hedge against inflation and have allowed people to send and receive money globally and without censorship. Moreover, it has brought the unbanked population into the fold in areas where access to financial services are needed most.

However, Bitcoin is just the tip of the iceberg. Blockchain technology has brought with it an array of innovation that is just now beginning to show its potential. None as relevant as Decentralized Finance (DeFi) which has become the most popular sector of the cryptocurrency world in 2020.

DeFi allows its participants to access financial services that were previously only available through third party financial institutions like banks and exchanges. With DeFi it is possible to trade assets in a fully decentralized way and also to implement automated investment strategies. This is done by providing liquidity for decentralized lending or trading.

Since there’s no third party involved, smart contracts are responsible for these services, allowing them to be cheaper, anonymous and, when it comes to savings accounts, they have proven much more profitable than legacy finance. The average interest rate in a savings account is 0.09% APY. With DeFi, however, one can expect much higher returns, sometimes in the double digit percentages.

DeFi isn’t perfect

DeFi has allowed a lot of people to earn yield on their crypto and stablecoin holdings, attracting attention from inside and outside of the cryptocurrency world. As for decentralized trading itself, it has become extremely popular, surpassing some of the most popular centralized exchanges out there. However, being as experimental and innovative as it is, DeFi has its flaws.

There are a lot of different projects, leveraging different types of code and investment strategies to generate yield. As so, DeFi can be extremely hard to navigate, especially for newcomers, as most projects offer a very rudimental user interface. A lot of projects have been launched without a code audit and with multiple attack vectors, leading to hacks and “rugpull” scams which have racked up tremendous losses for investors in the past.

On the other hand, VC-backed, centralized platforms within the cryptosphere have begun offering similar services, capitalizing on the DeFi craze. While these are usually more convenient, they are a step back from the progress made by the crypto community and return to the legacy model where a third party is in charge of one’s finances.

And this is where Octofi, often dubbed “community-owned coinbase of DeFi”, comes in.

Introduction to OctoFi

OctoFi is an all-in-one platform aggregating thousands of decentralized finance investment opportunities. OctoFi is aiming to fix all the issues associated with the nascent DeFi sector with a fully decentralized approach. It is an open source and community-owned platform that follows all the necessary steps to provide complete security, including an upcoming transparent code audit.

Through the OctoFi platform, users are able to access multiple liquidity pools to earn interest from, they are able to track their DeFi investments, find new opportunities and trade assets directly within the platform. All of this is done in a decentralized manner as governance of the platform is run by token holders.

OCTO gives its holders voting rights over the platform along with rewards from all of the OctoFi platform fees. In the near future, OctoFi will provide advanced features like those found on centralized exchanges. And later, incentivised oracle aggregators through its Tentacles project, where token holders are rewarded for helping gather and maintain accurate data.

In a nutshell, OctoFi will make DeFi accessible and reliable for everyone, including retail and advanced traders as well as businesses while advancing the fundamental cryptocurrency ethos of decentralization and transparency.

Try it out at app.octo.fi

Why is OctoFi anonymous?

The OctoFi team has chosen to remain anonymous to ensure the project is as decentralized as it can be. OctoFi will have no centralized founders and will avoid any type of “cult leader” vulnerability and promote a grassroots organic community that is formed around the project itself and not its team or founders.

By removing affiliations with the project, OctoFi can also promote security by reducing any social attack vectors that can be exploited by hackers or scammers. This also minimizes any attempts at shutting down the OctoFi platform, allowing the team to focus on the product and ecosystem.

Learn more

Octofi has made great strides since launching in October with no venture capital and has received an 8 out of 10 in Nik Patel’s coin report.

To learn more about OctoFi:

The community are welcoming and ready to answer your questions.

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An Introduction to Investing in DeFi from a Platform You Own
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An Introduction to Investing in DeFi from a Platform You Own