There’s no doubt that the traditional financial system is extremely elaborate and offers various investment opportunities that many individuals and companies managed to gain a return from. But these opportunities aren’t available to everyone, and the system has its limitations.
This old-fashioned financial system means you need to trust intermediaries with your resources and let them invest in ways that can sometimes prove to be too risky. On top of that, it’s also exposed and quite fragile when it comes to fraud attempts and human error. Not exactly the ideal way to improve your finances.
Let’s take a clear example. Suppose you opt for a deposit because you think it’s a way to keep your funds safe and gain a small but steady return. In practice, that doesn’t really happen; interest rates barely make a difference because of the increasing level of lifestyle inflation. If the inflation is too high for the return to keep up, you will be losing money, and your purchasing power will decrease.
The fact is most truly profitable investment opportunities aren’t available for everyone. For example, IPOs can be a good investment, but you will find that brokerage firms have quite exigent requirements from potential investors. However you look at it, common people don’t have access to instruments that can truly help them receive a significant return in the traditional financial system.
That’s why DeFi was created as an alternative available for everyone and a way of returning control to the user. Decentralized finance means losing the middle man and empowering every user by making them the central part of the decisional process when it comes to how their assets should be deployed. Centralization was a serious problem, and DeFi got rid of all the issues connected to it. It may sound too good to be true, so let’s take a closer look.
What Exactly Is Decentralized Finance?
To understand that, let’s think of what the traditional financial system offers. You get deposits, loans, trading and investment opportunities, a wide array of products and services, and, at the same time, various limits and negative aspects from the user’s perspective.
Since that wasn’t an ideal situation for the common user, decentralized finance was created as a much-needed alternative. What exactly does it mean? It means reinventing the traditional mechanisms and opening up the financial system to anyone who has an internet connection and a little bit of cash. It means eliminating external influences by using automated algorithms, called smart contracts, to operate the system and give users the possibility to be actively involved in every significant aspect. It also means you can do much more with your money than just keep it in your wallet.
The essential advantage is that you are no longer a passive user but are actually in charge; your vote decides how the DeFi solutions are used and how every investment you make on the platform is appreciated in the diverse pools. And the transparency we mentioned above also means you don’t have to worry about hidden or undisclosed fees.
Meet Nimbus – the Next Step for DeFi
It’s true that DeFi is still a growing concept, and there are certain aspects that are still evolving, which is why we don’t see mass usage at this point. But progress has definitely been made, and Nimbus is one of the best pieces of proof in this respect. So, let’s see what makes Nimbus a promising step forward and a great option.
Nimbus is an innovative platform that strives to leverage the best practices of traditional financing and combines it with the benefits of DeFi. Their approach is based on real-world use cases, making Nimbus’s present and future offerings extremely sustainable in the longer run. The launch of the Nimbus DeFi platform as well as their native token -NBU, is just one milestone in an extensive roadmap of innovative implementations towards true decentralization.
The secret recipe uses a holistic approach and combines the positive aspects of the traditional system with the possibilities that blockchain technology opens up. All that is possible due to the extended experience of the team.
As a DAO-governed ecosystem, it’s the users that handle everything, and every decision is made based on the general consensus after voting. As for the way those decisions are implemented, that entire process is automated and secured; the smart contract audit performed by one of the leading auditors, Zokyo, stands as proof.
How Will it Work?
The Nimbus ecosystem is preparing new opportunities for its users. To understand how Nimbus will piece by piece make DeFi realistic and sustainable, let us dive deeper into each of their future offerings- the dApps:
- The Nimbus IPO hub dApp, giving users a chance to participate in IPOs using liquidity pools, regardless of the amount of crypto they have. After studying the IPOs, the participants get to vote. The return will be calculated according to each user’s participation, and they will receive it directly, without any fees. This is a genuine innovation and an unprecedented opportunity opening up for all users. To strengthen users’ trust, Nimbus is going through in-depth audits and taking all the necessary steps to receive all the licenses that prove the solutions they provide work smoothly.
- The Nimbus Crowdfunding dApp is the tool participants can use to become part of start-up financing. The liquidity pool mechanics will play their part in this case as well, optimizing the risks and profits and making crowdfunding participation available to any user, without any discrimination or limits. The entire process is subject to sophisticated due diligence evaluation processes, and smart contracts ensure that funds are correctly and automatically distributed. The accountability is undeniable due to the usage of smart contracts.
- The Crypto Arbitrage-Trading dApp, the upgraded version of the centralized arbitrage and trading tool that has already gained users’ trust for a year now.
- The P2P Lending dApp, organically including traditional lending mechanics into DeFi. What Nimbus wants to achieve is to make pool-to-peer loans a common practice. Risk mitigation for lenders will be granted by collaterals or by the use of KYC, Biometrics, and Risk Profile assessment. Users will also benefit from multiple lending and pay-back options.
The best part is that you will be able to access all these dApps with one token- NBU, which will eventually give you 10 opportunities to multiply your funds. This is just the first step in the long-term strategy Nimbus has created. The goal is to evolve into a one-stop-shop, bridging digital assets to investment products for global users and creating unprecedented crypto opportunities.
The Nimbus platform and their native token- NBU, will go live on 27 January, and we feel ever close to an improved, realistic, and matured form of DeFi. The launch of Nimbus and its native token will open a gateway to help a wide array of participants benefit from the technology and the possibilities created.