The DeFi industry is growing by leaps and bounds yet remains prone to individual shortcomings. With little focus on insurance, auditing, and background checks, the industry will stagnate. Emerge DeFi is here to provide all of these services.
The Current DeFi Flaws
The majority of decentralized finance platforms and services seem to fall for the same pitfalls. Putting together working smart contract code is the easy part, but protecting users requires a different approach. There isn’t enough focus on insurance, auditing, background checks, or launchpad services for new tokens.
Building this infrastructure is crucial to keep advancing the DeFi movement. If users can’t benefit from insurance, they will keep losing funds to theft, hacks, and smart code problems. Throughout 2020, there have been too many incidents of this nature. Developers can not foresee all possible outcomes, but projects need some recourse for affected users. Unfortunately, that is not the case today.
Finding The Right Solution
Emergi DeFi is a project focusing on the long-term sustainability of decentralized finance rather than personal gain. It is an all-encompassing platform that serves multiple purposes, all of which aim to usher in the next generation of Defi solutions.
Token Launchpad and Promotion
New DeFi projects commonly create their token—an approach that often lacks coordination or incentives. Emerge DeFi offers a solution for influencers, entrepreneurs, and teams looking to launch a token. Building a decentralized finance brand poses many roadblocks, all of which require a specific approach to overcome them.
For the token sale aspect, Emerge DeFi introduces many customization options. Whether one wants to lock liquidity or perform KYC verification, presenting an aura of confidence is crucial to any token launch.
Attracting influencers is a core aspect of running a successful token sale. However, influencers aren’t keen on dealing with anonymous teams. In the DeFi industry, most groups of developers will not make their identity public. Emerge DeFi can perform a background KYC check to determine whether the project in question is trustworthy.
Insurance & Auditing Are Necessary
Due to the transparent nature of DeFi smart contracts, anyone is capable of reviewing the code. Understanding the nature of these contracts, however, is above most people’s paygrade. It is for this reason that projects need to undergo code audits before releasing their platform. That doesn’t happen nearly enough as it should, though.
The same goes for insurance, an aspect that is nearly non-existent in the DeFi scene. One of the few insurance providers – Cover Protocol – recently suffered a hack. A clear sign of how things need to be done differently and sooner rather than later. Emerge DeFi offers solutions for insurance and auditing to ensure future projects do not suffer from these setbacks.
Spring Cleaning In Decentralised Finance
As the Spring season is around the corner, the time has come up to clean up the “mess” in decentralized finance today. Far too many unprotected, unaudited, and uninsured projects exist today, all of which can cost users money. Given the number of hacks and scams taking place in this industry, Defi is losing legitimacy at an alarming rate.
Having a complete solution is an essential first step. Blockchain technology allows for innovative ideas and concepts, but it cannot grow without the correct infrastructure and tools. There is a lot more to this industry than marketing, sales, public relations, and selling tokens. Without the necessary technical infrastructure for auditing and insurance, decentralized finance will never gain broader adoption.
If decentralized finance wants to be taken seriously, it needs to provide the same degree of peace of mind and security as traditional finance. Today, the industry is not capable of doing that just yet. Solutions such as Emerge DeFi may change the narrative yet still have everything to prove.
Today, decentralized finance primarily focuses on yield farming and speculation. A different approach is required to go to the next level and pose a threat to centralized finance. Focusing on security, accountability, auditability, and insurance is necessary to reach that next level. Until those building blocks and infrastructure are in place, DeFi will have little to no mainstream appeal.
Solutions such as Emerge DeFi highlight the need for long-term thinking rather than focusing on short-term solutions and profits. Legitimizing decentralised finance will require a lot of time and effort. The cryptocurrency industry is only now gaining recognition after nearly a decade of learning lessons. Communities and teams need to put those lessons to good use to accelerate DeFi adoption.