FinTech usage is higher than ever as more people have become used to it and businesses have invested millions of dollars already. With the development of Web3, Decentralized Finance or DeFi is also on the rise. Even with the cryptocrash that happened in mid-2022, many people are still investing in cryptocurrency. In our article, How To Use No-Code in Cryptocurrency studies show that more millennials are still investing in it. Apart from that, they have started using cryptocurrency as a regular currency for buying regular things.
DeFi is already an emerging financial technology based on secure distributed ledgers similar to those used by cryptocurrencies. With Web3 and its vision of decentralized connectivity, DeFi is developing to become a secure way to transact and do business on it.
No-code is a tool in Web3 that has been updated and improved. In our article, No-Code as a Tool in Web3 we map out how no-code makes Web3 accessible to anyone. At present, no-code lets anyone with limited knowledge of program development create apps, websites and automation programs to help their personal or business. And as the new generation of internet looms around, we are excited to see how no-code DeFi can help Web3 adoption.
Traditionally, banks and service providers are gatekeepers to access financial services. They filter and check qualifications before letting anyone use their services. DeFi infrastructure offers “accounts”, savings and loans, payments, and investing in a model that is inherently based on technology and not a single governing body. This makes it easier for users banks support — earn interest, borrow, lend, buy insurance, trade derivatives, trade assets, and more —in blockchain where every movement can be tracked through ledgers. The general concept of Web3 of decentralization is applied through financial services through blockchain, usually Ethereum. For the cryptocurrency owner, this means cheaper or zero banking fees and charges and the transfer of funds to anyone in minutes.
It reached an all-time high of $174 billion mid-November of 2021, but fell to $105 billion by end of January 2022. Even with this crash, many people continue their support by buying and trading cryptocurrency. As we enter Web3, DeFi will be the key to conducting financial transactions. Websites like MakerDAO and Aave have already established themselves as trusted platforms for conducting DeFi. More opportunities can come especially for the pioneers in this field.
Lending crypto and earning interest every MINUTE. Unlike in regular banks which takes months before you earn, lending with DeFihas faster returns.
Obtain flash loans without filling in paperwork which is unlikely in regular banks.
Since Web3 is all about decentralization, trading can be done directly between two owners without a middleman
Make long or short bets on certain assets much like the stock market.
When dealing with DeFi, always consider its downsides of it such as fluctuating transaction rates on the Ethereum blockchain high investment volatility, and maintenance of records for tax purposes.
DeFi is all about accessibility and so is no-code. Many are wondering how to earn from DeFi and if they need to learn coding. No-code answers this by providing easy way to program their own decentralized apps or DApps for DeFi.
You can access DeFI services through DApps and even crypto wallets. If you want to know more about no-code DApps, you can check out How to Build and Earn with No-Code DApps.
DeFi apps allow users to access decentralized finance platforms. Defi DApps work on the basis of smart contacts that dictate the use of the DeFi app for fulfilling DeFi transactions of crypto assets such as coins and tokens from users’ DeFi wallets.
When building DeFi apps you need to know key things to make it functional and safe for your customers. You also have to choose the right platform for what you want to achieve for your app. Here are some tips on building a no-code DeFi app
You will have to decide on the blockchain network your application will run on. Ethereum is a popular blockchain network for DeFi and DApp but along with this growth more people are joining. This means network congestion which results in slower transactions and higher costs. Apart from that, check for rates for network fees, associated peer-to-peer transaction speed, blockchain network backend technology, and compatibility with the technologies you are planning to add.
Ensure that your no-code blockchain developers have sound knowledge of smart contracts and the expertise to develop them. There are no-code smart contract builders out there that can secure your DeFi DApp.
You will need to work with APIs to integrate third-party functionalities into your mobile or web app. Some common ones are user authentication, app notification support, etc. For a DeFi app, you may require some additional integrations such as data feeds to access off-chain data and DeFi crypto wallet. You can also learn how to build your own crypto wallet by reading Crypto Wallet and Using No-Code to Build to provide private keys to users, However, integrating developed crypto wallets supporting multiple tokens from different blockchain networks ensures better cybersecurity for your DeFi DApp.
Decentralized finance is constantly evolving. Due to its unregulated nature and its ecosystem being riddled with infrastructural mishaps, hacks, and scams, many are still hesitant to use it. There is also a question of financial crimes and scams happening across territorial borders, protocols, and DeFi DApps.
Admittedly still in its infancy, but there are a lot more things to look forward to it. It offers global advantages, such as removing middlemen for transactions making it faster and cheaper and is seen as an alternative finance tool in countries with underdeveloped financial systems.
Like the ocean, DeFi is both magnificent and dangerous at the same time. The DeFi market is brimming with money and opportunity and no-code startups and businesses should find a way to make their way around it.
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