What is Decentralized Finance (DeFi)?

• Decentralized Finance (DeFi) is an open financial system built on blockchain technology and smart contracts. It aims to replace intermediaries in the traditional financial system, such as banks and exchanges, and provide users with more transparent, efficient and open financial services.

• In DeFi, all financial transactions and services are executed through smart contracts. Users do not need to rely on banks or other centralized institutions, but can complete operations directly on the blockchain. The core concepts of DeFi are decentralization, permissionless, and trustless.

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Core features of decentralized finance

• No intermediary required

• Traditional finance relies on intermediaries such as banks and brokerages, while DeFi automatically executes transactions through smart contracts, eliminating the need for intermediaries.

• Transparency

• All transactions and rules are publicly recorded on the blockchain and can be reviewed by anyone.

• Global and borderless

• DeFi services can operate globally and anyone with an internet connection and a crypto wallet can participate.

• Permissionless

• Any user can use the DeFi protocol without identity verification or authorization.

• Programmability

• Through smart contracts, DeFi can achieve complex financial functions such as lending, trading, derivatives, and profit distribution.

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The main applications of decentralized finance

• Lending

• Users can borrow or lend assets through DeFi platforms and earn or pay interest. For example, platforms such as Compound and Aave provide cryptocurrency lending services without credit checks.

• Decentralized Exchanges (DEX)

• Such as Uniswap and SushiSwap, allowing users to trade tokens directly on the chain without relying on centralized exchanges.

• Stablecoins

• Stablecoins (such as USDT, USDC) are linked to the value of fiat currencies through smart contracts and are an important part of the DeFi ecosystem.

• Yield Farming

• Users earn extra rewards or returns by providing funds to liquidity pools.

• Payments and Remittances

• Use DeFi protocols to complete global payments and remittances quickly and at low cost.

• Decentralized Insurance

• Through smart contracts, automatic claims can be realized, and users can purchase insurance contracts to reduce financial risks.

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Application of BitNest in DeFi

What is BitNest?

BitNest is a decentralized finance (DeFi) platform based on blockchain technology, aiming to build a transparent, accessible and inclusive distributed digital world system.

It realizes a decentralized peer-to-peer economic circulation model, safely and risk-free to meet the needs of global users and institutions for capital circulation, lending, and circular savings.

BitNest will solve the high-risk, high-cost and low-efficiency problems common in the traditional financial system. Through decentralized design and smart contract technology, BitNest provides users with trustless, safe and efficient financial solutions, redefining the future of global finance.

BitNest’s main features:

1. BitNest Loop (-i)

• BitNest Loop is a decentralized smart contract protocol based on the Ethereum network (EVM), focusing on providing leasing and profit sharing services that comply with Shariah (-i).

• Users can safely deposit or share cryptocurrency assets and enjoy transparent and fair profit distribution.

• Through decentralized technology, the BitNest Loop smart contract does not require credit scores or complex review processes, but uses algorithms to automatically match supply and demand, provide efficient global asset configuration, ensure transparency, security and fairness for both parties to the lease, and maximize the profit potential of both parties.

1. Saving Box

• Saving Box is a PancakeSwap protocol based on blockchain technology, similar to traditional banks but more transparent and efficient.

• Users can deposit assets into smart contracts and obtain a stable daily return of 0.4% based on the savings cycle selected according to their needs.

• The protocol eliminates intermediaries through decentralized storage, while providing open and transparent profit calculations to create a safe and reliable digital asset savings platform.

1. Invitation Rewards

• By inviting new users to participate, users can get sharing rewards:

• Level 1 (direct invitation): 20% of each circulation income.

• Level 2 (indirect invitation): 10% of each circulation income.

• Levels 3-7: 5% of each circulation income.

• Levels 8-10: The income gradually decreases to 3%.

• Levels 11-17: The income gradually decreases to 1%.

All rewards are immediately distributed to the wallet address of the inviter through the smart contract.

1. Decentralized transparency

• All BitNest transactions and earnings records are recorded on the blockchain, and users can view them at any time through the blockchain browser.

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Advantages of BitNest

• High transparency:

All rules and profit distribution processes of BitNest are automatically executed by smart contracts, and all transactions are open and transparent.

• Fund security:

Users' deposits are locked and managed by smart contracts, without the need to trust the platform, avoiding the possible fraud risks in traditional finance.

• Low threshold participation:

Users only need to have a crypto wallet to deposit funds and start earning profits.

• Flexibility:

Users can deposit and withdraw money at any time without being restricted by traditional banking time.

Summarize

Decentralized finance (DeFi) has completely changed the operating mode of traditional finance through blockchain technology and smart contracts, making financial services more transparent, efficient and global.

DeFi platforms like BitNest provide users with convenient investment tools and maximize the advantages of blockchain technology through features such as savings income, liquidity circulation and invitation rewards.

BitNest is a typical representative in the DeFi world. It shows how to use blockchain technology to achieve fair, secure and efficient financial services, suitable for users who want to explore new investment methods.