According to Lakov Levin, CEO of Midas.Investments, the transparency offered by decentralized platforms is something CeFi can benefit from adopting.
Despite the prolonged downside trend on the market, the rate of crypto and blockchain adoption keeps growing across the industry. Today, more than 300 million people worldwide hold and exchange cryptocurrencies. Besides, over 18,000 companies accept crypto payments.
One of the main factors for mass adoption is crypto profitability. Nowadays users realize that HODLing coins is just one strategy – but not the most high-yield so far. To earn more they can lend their assets, borrow finances against crypto collaterals, stake tokens, or take part in yield farming.
Yield has become the cornerstone of the crypto economy, helping users maintain financial stability even during crypto winter times.
Yields in CeFi and DeFi
Crypto yield services are offered by two types of platforms: CeFi (centralized finance) and DeFi (decentralized finance). In common, CeFi is considered to be more safe and thus reliable while DeFi offers higher profits but with more risks.
“When one stakes their crypto on CeFi such platforms, it is lent out to individual borrowers with fixed repayment rates. It creates a good financial cycle, which, in turn, contributes to the stability of the model. DeFi platforms, on the other hand, mostly use variable rates (non-fixed rates), which can change depending on the liquidity pool size or the token emission rate,” says Lakov Levin.
CeFi + DeFi = MetaFi
Combined into MetaFi, CeFi and DeFi models can create a more exciting scope for users and, at the same time, minimize the risks.
MetaFi bridges the gap between centralized and decentralized models. Through adopting the latter’s transparency, it lets users know how their assets are managed, also keeping them informed on the associated risks and rewards.
Choise.com is a MetaFi ecosystem based on Crypterium CeFi solutions and Charism DeFi protocol, that reinvents how protocols operate with CeFi, reduces commissions up to 50 times and unlocks cross-chain high yield to 100 mln CeFi users.
“We call Choise.com a MetaFi ecosystem, because we are gathering multiple solutions in a single marketplace to offer more opportunities to earn on crypto. New CeFi and DeFi products appear every day, but it is still a challenge for people to make use of them: one has to move between blockchains, platforms, wallets to access liquidity pools or multi-currency deposits. Choise.com will aggregate the most profitable crypto solutions of the industry, regardless of their complexity under one roof. We will make it possible for both crypto newbies and pros to find an interesting way to earn on crypto every single moment in one app,” says Choise.com CEO and Founder Vladimir Gorbunov.
The MetaFi model serves as a bridge between CeFi and DeFi, allowing for account creation and fund management for investors participating in DeFi. Each of these strategies boasts attractive ROIs while demonstrating resiliency through different market cycles – bullish or bearish.
MetaFi: Summing up
MetaFi has the potential to change the crypto industry, solve some of the most pressing issues, and drive mass adoption of digital assets. The controlled yet transparent model can allow platforms to generate more sustainable passive income for the crypto community.
Going forward, users who want to earn through crypto will have the opportunity to mitigate risks using MetaFi solutions that will generate yields through hedging DeFi strategies.
As a result, MetaFi is rising due to the greater accessibility and seamless deployment. So, investors enjoy access to opportunities that generate APYs by investing in handpicked products and services that best meet their goals.
Join the Choise.com MetaFi community and stay tuned
Twitter — https://twitter.com/ChoiseCom
Discord — https://discord.gg/gkcrQjcEFY
Telegram Community — https://t.me/Choise_com_Chat
Telegram Announcements — https://t.me/choise_com