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Tezos Joins DeFi Arena With StakerDAO

Staking Support for Tezos Arrives at Coinbase Custody MakerDAO to Join Shortly

If you’ve had your ear to the ground when it comes to the crypto industry, you’d know how overwhelmingly popular the Decentralized Finance (DeFi) sector has become. DeFi serves as everything that the crypto industry has strived to grow, for the most part, creating the needed financial instruments for sophisticated financial services. These services are dictated by a hard protocol, transparent to all who partake in it. Thus, the DeFi industry is defined as the way its base networks are defined: Its decentralized nature.

A Crypto Gold Rush

The frontrunners in this industry are undoubtedly the Ethereum network, with Bitcoin trying to be its competitor. Ethereum hosts a vast array of various DeFi options, with the most prominent in the entire industry being MakerDAO and its namesake DAI stablecoin, a crypto coin backed by another crypto.

As it stands, the DeFi industry is one of the most significant technological developments in the crypto industry, since the inception of cryptocurrencies itself. As one would imagine, countless firms and businesses have been clamoring over each other to make a place form themselves in this new market. DeFi Pulse, a data provider regarding the entire DeFi industry, has shown that about $700 million has been secured within the DeFi industry’s various smart contracts.

Leaders and Competitors

MakerDAO effectively dominates this market in its current form, consisting of more than half of that number. Maker allows for its users to borrow with DAI coins. Holders of the MRK tokens are then capable of determining the appropriate ratio of collateralization and the applicable interest rate.

Tezos Joins DeFi Arena With StakerDAO

StakerDAO stands as the Tezos network’s reply to the growing DeFi industry. It stands in a primed position to allow its holders of the STKR coins to reap the benefits of the DeFi protocol. Holders of the STKR tokens are capable of voting and deciding what Proof-of-Stake (PoS) networks they will join. Thus, the collective will determine where the best interest rates will be found.

The Wheels of Progress

The StakerDAO system is built within the Tezos decentralized network. Thus, the protocol limits the standard dangers of single tokens that define various other methods. With the addition of the ability to move from one PoS network to another, stakers have the chance to maximize their profits and limit their risks.

The world is starting to accept the cryptoverse and its various new features slowly. DeFi was the first step in providing a tool that mainstream investors would find attractive. As time goes on, it’s only natural for new features to be developed.

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      A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.