DeFi makes Fintech Work, as should

Decentralized Finance(DeFi) is the future of banking, business and finance, it is a telling through how overly-leaning on technology the business world is becoming.

We discuss financial technology(Fintech) pretty often in key finance and tech ecosystem but not a lot of these spaces acknowledge one thing:

That crypto is the missing piece in Fintech.

Usually, microfinance banks and several payments software are considered Fintech, but that's the thing, you cannot truly have "Fintech" by only solving one or two problems, savings? Spending? There's rather a long list of solutions that are needed.

When we say finance, savings is the very basic, investing is a huge part that most Fintechs don't have, at least not at an extended and inclusive level as DeFi. Truly, many are quickly realizing this and commercial banks that enjoyed being regular boring deposit institutions are not quite loving it.

For example, Fintechs in Nigeria are expanding, offering easy access to foreign markets like access to U.S stocks through strategic partnerships with services like Bamboo, and others are now offering millions of Nigerians access to USD accounts for global transactions that includes sending and receiving payments in USD and best believe that a Card is in this mix, fuck PayPal.

The commercial banks down there are having a war over this, apparently competition is heating up and they are losing users, cause why not? Up until now, Nigerians have been widely excluded from accessing several opportunities worldwide, no wonder some turned to fraud no?

Before blaming the people, understand the system. Commercial banks are currently blocking transfers to Fintechs and it's all just comical to behold.

So how would they block crypto transactions is what I often ask myself.

Cryptocurrency Is The Ultimate Fintech

Crypto transactions do not require "third-parties" involvements, this is the beauty in it and I've often spoke on this from the angle of crypto solving "cross-border" payments which really just tells us a simple truth about the world of global finance:

Cross-border payments were never not possible, in fact, it's best to understand that what works in your country can work globally but you know, the governments have to enforce exclusivity where necessary in order to maintain control of value flow.

But for how long?

The establishment of peer-to-peer trading platforms is giving major locations inclusivity regardless of perhaps "banking restrictions".

And this is bound to keep getting bigger and bigger as time passes, I mean, it's been a discussion for a long time coming now that crypto on and off ramps are an increasingly demanded service and you know what happens where there's demand?

Entrepreneurs build businesses, that's what.

You simply cannot stop evolution, change is the only guaranteed factor to meet in this journey.

DeFi is bigger than yield, DeFi is hedging

We are in the early phases of what will be a major move of global economies, a few billion in locked values now is simply something small compared to what's coming.

I know how it sounds, but like I said, the one thing that guarantees this is that there's demand, and it must be fed, if not on the open market, the black markets will take the bet and play their cards, people over there may have been born through pussies but they don't live looking like one!

When we look at things like liquidity pools, people think about the short-term yield but never the long term hedge it provides.

No no, we won't talk about savings on DeFi nor DeFi loans, but simply the hedge factor in DeFi platforms.

Typically, when you deposit into a liquidity pool, you get LP tokens, think of them as shares of a company(the pool).

Yes, this is something the majority don't look at maybe because they are invested in restrictive pools? I don't know, but to the best of my knowledge, most LP tokens are flexible and can be moved around.

Looking at the long term hedge means that we now see liquidity pools as investments not quick cash grabs that we can pull our money out at any time. Is this how investment works?

How come nobody think of getting the value of their investment back on the long-run through the yield and leaving(and possibly growing) the initial deposit in the pool to strengthen the hedge?

This is what DeFi offers. Yields and Hedge, provided you're invested in the right place, you have a good leverage for an extensive sustainable value flow.

In addition, LP tokens can be used as collateral to access more value for short or long term bets, depending solely on individual investment strategies.

All functioning autonomously on the blockchain with solely you and smart contracts exchanging data and value. What would best define "Finance" and technique as in "Technology" in Fintech?

This is how crypto, with the enablement of DeFi makes Fintech Work, as should.

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