What DeFi is
The UWIM cryptocurrency project actively uses DeFi technology.
Decentralized finance is an ecosystem of financial services that aims to reduce the number or completely eliminate intermediaries in transactions through decentralized computer network utilization.
We can speak of “weak” or “strong” De-Fi; it depends on whether the service disintermediation and decentralization are partial or complete. «Weak» De-Fi uses «traditional» P2P platforms; “Strong” De-Fi uses the blockchain. The systems of the second type are becoming widespread in 2021.
Smart contracts have become the basis for decentralized finance: they are integrated into the blockchain. These are algorithmic «if-else» functions that allow you to execute transactions automatically when certain conditions are met.
The total De-Fi cost is calculated based on the value of smart contracts of the most popular protocols and applications: it has exceeded $ 23 billion currently.
The DeFi sector opens up access to financial services to millions of people without a bank. It is undoubtedly a great opportunity to provide development possibilities and financial freedom to those who, for various reasons, could not use these services in traditional institutions.
It also drastically simplifies the international funding of companies and projects. DeFi platforms can be adapted to meet the needs of the target audience that enable development and investment where needed. Moreover, these investments can come safely from anywhere in the world.
Create a new point of diversification and economic development. DeFi could mark an essential economic development point in the medium term due to the tremendous economic potential of cryptocurrencies.
The Decentralized Exchange that will be launched as part of UWIM is a transparent, reliable and convenient platform for financial transactions. Its functionality will be provided not only by smart contracts but also by liquidity pools created for each currency pair and digital asset.