Decentralized Finance, commonly known as DeFi, has started gaining immense popularity. It is changing the way people interact with money. After the evolution of centralized finance in the crypto world, DeFi is gaining global traction. This is the reason why more of the entrepreneurs are showing interest in DeFi DApp development.
According to research, the size of the decentralized applications market is projected to reach $21,070 million by the end of the year 2025.
The Benefits of DApps
The most significant advantage of DApps is that they are decentralized in nature. Almost all software experience problems like web downtime, bugs, security breaches, and more. DApps can solve many of these problems.
Here are some of the crucial benefits of DApps:
1) No or minimal transaction fee
2) Open source
3) Censorship-proof
4) Can accept cryptocurrency as payment
5) Users have full control over their data
6) No central authority
7) Readily scalable
DeFi runs on trusted and distributed networks, thus enabling anyone to access a wide range of financial products and services from any location across the globe.
So, how can DeFi help you earn money?
A large number of people hold Bitcoin (BTC) for a long time whether in a DeFi wallet or with a custodian – like an exchange. These days, people are earning interest on their cryptos via DeFi apps rather than letting their funds sit dormant in a wallet or an exchange.
While DeFi is in its very early stage, there are several ways in which investors can earn passive income.
Income-generating DeFi products:
1) Liquidity mining
Liquidity mining in DeFi refers to the process of depositing or lending designated token assets with a mining mechanism to provide liquidity for the product’s fund pool and get rewarded in turn.
You can generate revenue by providing liquidity for a specific token and in return, you will get rewarded with the governance token that allows you to take decisions on protocol parameters, including value capture mechanisms.
2) Decentralized Exchange
A DeFi exchange harnesses the key potential of blockchain technology to offer greater financial security, transparency, unleash liquidity and growth opportunities, and forge the path for an integrated and standardized economic system.
By developing your DeFi exchange platform, you can generate a new revenue source for your business by offering- deposit and withdrawal fees, trading commission, crypto staking schemes, consultancy fees, and by listing a new DeFi coin on your exchange.
3) Decentralized wallet or app
Within just a short period, the DApp market has grown to such an extent that entrepreneurs from all across the globe and industries have started crowding the space. Today, around 2,217 DApps are active in the crypto market. So, developing your own Decentralized Finance wallet or app is a win-win task for every business owner.
There are numerous ways through which a white label crypto wallet owner can make profits such as, transaction fees, staking, the launch of a new coin or token, and consultation fees.
4) Staking
DeFi staking is equally beneficial for both stakers and staking platform owners. With DeFi staking, the users can lock up their crypto assets, earn easy income, and participate in the governance model of the protocol. As everything is controlled by smart contracts, security is not a challenge in the DeFi staking space.
Whereas for DeFi stake owners, crypto staking is a scheme where a specific number of crypto coins or tokens is locked in the platform for a specific time. In return, crypto-asset owners can earn a commission. The exchange owner gets hold on to a huge funding amount that is further used to re-invest in another industry like real estate or the stock market. This allows the exchange owners to diversify their funds and multiply their earnings.
5) Crypto Lending Platform
Crypto lending platform development is an effective way to earn revenue from the crypto market. As a crypto lending platform owner, you earn from both borrowers and lenders. In the case of lenders, you earn a specific percentage of interest earned by the lenders. Similarly, if the borrowers default on their loan, you possess the collateral deposited by them.
For those planning to enter the crypto market and generate a new revenue stream, the DeFi world does wonder for them.
The Future of Decentralized Applications
DApps will continue to grow steadily in the future. Even though it is relatively new in the market, it is witnessing fast developments in different sectors. 2021 is expected to bring lots of advancements and the expansion of blockchain technology and its applications.
If you are also planning to generate more revenue streams in the crypto world, then investing in decentralized crypto exchange development, lending platform development, or cryptocurrency wallet development is the best bet for you.
At Antier Solutions, we provide a white label DeFi crypto wallet development solution reinforced with powerful features such as a QR code scanner, multi-layer security, in-chat transactions, multi-signature support, and more. Our white label software can help you launch a DeFi wallet in just 7 days.
Schedule a free demo of our white label DeFi wallet or app development solution or connect with our blockchain experts to share your business needs.
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