The world of cryptocurrencies has come a long way. What started as a simple idea of digital currency with the advent of Bitcoin in 2009, has grown into an industry of its own, that has further opened doors for new innovation. The cryptocurrency space keeps on expanding its horizons, with newer products and services coming into the market, each talking about its own ambitious set of goals.
However, by far, the hottest domain within the cryptocurrency space these days has been DeFi. DeFi stands for Decentralized Finance, and is basically an amalgamation of all decentralized products and services like cryptocurrencies, digital assets, smart contracts, protocols, and applications. The DeFi space is growing at an unabating rate and is already worth over $1.5 billion in products and services. It is indeed one sector that will add decentralization to the current financial ecosystem in its true sense.
While there are still a lot of improvements needed to be done within the DeFi space, and a lot of features to be added to the ecosystem, many companies and startups are bringing forward some amazing developments. Similarly, HolyTransaction is a cryptocurrency exchange (not really an exchange as we will look forward) that has made an interesting development of launching DeFi staking for its users through DAI tokens. This DeFi staking program was first announced this week with DAI, which is a stablecoin generated by loans on MakerDAO. This initiative by HolyTransaction will help its users to earn staking rewards in the DeFi space with USDT, USDC, and DAI.
A little background check in to the history of HolyTransaction.com will be worthwhile here. HolyTransaction is the first multi-currency wallet that has made a place for itself specifically in the alternative coins domain since 2015. HolyTransaction provides a safe and easy to use wallet which allows its customers to exchange several different alt coins in one place. However, despite the impression of being a trading exchange, HolyTransaction does not really see itself as a traditional exchange but rather a wallet that can be used by anyone.
Now, HolyTransaction has come up with an unprecedented move of allowing staking stablecoins such as DAI, USDC, and USDT for its users. Staking in DeFi is very similar to staking in other individual cryptocurrencies. Like Bitcoin is based on the model of mining, where individual nodes have to mine new blocks to process transactions, many cryptocurrencies are based on the model of staking. Staking basically allows a user to participate in the network through the proof-of-stake model, by utilizing smart contracts.
Likewise, DAI is a token that is very relevant to the domain of DeFi. It is a token of the MakerDAO project which basically provides a smart contract platform on top of the Ethereum Blockchain. DAI is a stable coin by definition, and maintains its value relative to the USD. Now, how all this staking mechanism works is really interesting. MakerDAO came up with something known as Collateralized Debt Position (CDP) back in 2014. With a CDP, users can deposit their real world assets into smart contracts, just like you put collateral for a loan. After a smart contract containing the asset deposited is formed, users can then generate DAI coins, equal in worth of their smart contract. DAI allows the exchange of many cryptocurrencies, and is an integral part of many DeFi based products and services.
DeFi space is a decentralized economic ecosystem. Instead of central banks and authorities, users control the dynamics of the DeFi space. And how they do that? Through consensus mechanisms like Proof-of-Stake. PoS consensus algorithm requires its users to deposit their coins to the network, or in other words, they are required to put their cryptocurrencies on stake, before they are allowed to participate in the network’s processes. Staking also allows you to earn staking rewards, as a return for your services to the network. A user helps to manage the network by processing transactions, and being a part of financial decisions. In return for this service rendered, users are rewarded with more coins.
Staking has evolved into a mechanism of its own. It’s more like an investment opportunity now, where users deposit their cryptocurrencies and earn interest on it. There are many services out their which offer staking rewards. And now, HolyTransaction has joined the bandwagon to allow its users to enjoy the staking opportunities in the DeFi space, through DAI, USDC, and USDT.
It is a well-established fact within the cryptocurrency space that not only DeFi is growing, but that it is growing at a tremendous rate. DeFi space is here to stay, and is potentially the future of the crypto-industry. The crypto-community, at large, is already very interested in its products and services, with leading giants slowly moving into the DeFi space. The latest move from HolyTransaction is a very promising one, as exploring the DeFi space holds the key for long-term success. The users requested access to the DeFi space, and HolyTransaction has given back just in time.