Dear Bitfxt Community,
We are beyond excited to announce that Bitfxt has officially moved to DeFi. At the same time, we will be launching our DeFi token called BitDeFi (BFi) by 12:00pm (WAT) today the 21st day of September, 2020. Details of the token can be found at the end of this blog.
First, we will briefly explain what a DeFi system is, what makes it different from a CeFi and what you will gain from investing in BFi.
'DeFi' stands for Decentralized Finance. It is a system that promotes the use of decentralized networks and open source software to create multiple types of financial services and products.
The following are notable functions of DeFi. Viz;
To create efficient banking services such as the issuance of Stablecoins.
To provide a platform for P2P borrowing and lending
To enable advanced financial instruments such as DEX, tokenization platforms, derivatives and predictions markets.
These are three (3) major functions of DeFi. There are a lot more benefits and opportunities that a DeFi system provides.
Basically, DeFi aims to shift the traditional centralised financial products to the open source and decentralized world, which removes the need for intermediaries, increases transaction efficiency, reduces overall costs, and greatly improves security.
An example of a DeFi exchange is Uniswap and Bitfxt. As a DeFi exchange user, you have shares in the company by just holding their token. In Uniswap, you earn UNI for providing liquidity to their exchange. Same thing applies with Bitfxt and the BFi token.
‘CeFi’ stands for Centralized Finance. It allows people to earn interest or get loans on their cryptocurrency by lending or borrowing it through a centralized corporation. These corporations are responsible for the success of their products and the well-being of their clients. Though these firms may be using a new kind of money, there is very little innovation in terms of structure. Why? They are centralized and all decisions come from them.
Examples of organizations that run CeFi systems are centralized exchanges like Bitfxt, Binance and Coinbase. When people talk about CeFi, they’re primarily talking about neobanking, a kind of digital bank without any branches. These are FinTech firms that are pushing to provide digital and mobile-first financial solutions such as Bitfxt has with Boundlesspay. In CeX (Centralised Exchanges), you have makers and takers.
In DeX (Decentralised Exchanges), they are called liquidity providers. Also note that an exchange can be Centralised and Decentralised. Bitfxt runs on both CeFi and DeFi systems. What this means for our users is that you have access to the variety of features that a DeX and CeX offers.
For enquiry, contact support
Follow us on Twitter
Join our Global Telegram Community
Join our Global Facebook Community
Follow us on Instagram
Subscribe to our YouTube Channel