The traditional financial system is built on top of banking, which in itself is a highly centralized, malleable, and dependent system prone to manipulation and external factors. As such, banks are not only limited in their reach to those most in need but are also restricted in the amount, quality, scope, and quality of services they render.
There are millions of unbanked people around the world who cannot receive financial services from banks for a variety of reasons – lack of personal IDs, insufficient funds, inaccessibility of branches, political situations, literacy rates, and so on. This creates numerous problems on the individual and macroeconomic levels, restricting the development of human and national potentials through the limitation of loans and other financial services.
The advent of the decentralized infrastructure built on top of blockchain networks has given the global population the chance to take advantage of an alternative financial system built on a principle that does away with centralization, entry thresholds, regulatory restrictions, and other factors. The result was the development of Decentralized Finance or DeFi for short.
Though the DeFi sector is new and is evolving, marred by cluttered interfaces and oftentimes confusing schemes of operation, the potential it bears in becoming a full-fledged parallel financial system is high. The high yields of returns on deposits in the sector, low costs of entry, the convenience of accessibility, and the broad variety of instruments and services on offer in DeFi are its main advantages over traditional banks. Anyone willing can become part of DeFi and access high yields of returns. Find out about these and other opportunities in the always up-to-date Midas discord channel. There we discuss DeFi news, sentiments, and a broad range of instruments it offers to reach your financial freedom.