One of the biggest buzzwords you will see in the crypto sphere is DeFi, a shortened term for decentralized finance. This umbrella term includes all peer to peer financial services on public blockchains. Previously known as “open finance”, this encompasses many financial applications in blockchain, and it aims to disrupt the current finance system. Think decentralized institutions, no need for ivory towers on Wall Street, no bloated bankers salaries, no unnecessary overhead costs. There is an unlimited potential in freeness and fairness, accessible to anyone with a computer and internet connection. Ultimately future developments in the DeFi marketplace will mean that all data will be safe and completely private.
Currently, all decentralized finance activities are taking place on Ethereum, the world’s second largest cryptocurrency platform, due to its flexibility and ease of use. Innovation in DeFi is moving at a fantastic pace. One of the new concepts deployed is known as yield farming. Simply put, yield farming is any effort to put your crypto assets to work in order to receive the highest returns possible on those assets. One of the newest ways to make profits on farming is found in the Ethereum network using the Free TON Ethereum bridge. Users can provide tokens to the DEX (decentralized exchange) or bridge liquidity pool. Liquidity pools are smart contracts that have tokens locked in their accounts. Liquidity pools are used by a DEX (decentralized exchange) to maintain trading activity and token liquidity. When placed in the decentralized exchange they temporarily freeze the tokens in place. While frozen, the tokens are available for exchange with other users in the system, which allows these tokens to be constantly performing operations, without waiting for a specific currency to make an appearance.
There are many benefits to using the Free TON Ethereum bridge. It is open, you don’t need to apply for any form of service. You never have to provide your name, or any sort of personal information. The speed is incredible, thanks to dynamic sharding built into Free TON. This provides not only speed but incredible performance that is more than sufficient to support any kind of transaction. Free TON has its entire system designed in Smart Contracts. This means that almost any logic can freely be implemented, no matter its complexity.
First bridge has been developed between Free TON and Ethereum by Broxus. Even more bridges are currently in development between Bitcoin, Polkadot and more. A seemingly magical movement is taking place in the open finance system, bringing money and access to all online. The functionality of money will change before our eyes. We will see the fast and cheap transactions for even complex DeFi use cases. It is difficult to imagine what new innovations will occur when the power to create financial services becomes decentralized and a true meritocracy.