দ্য ওয়াল স্ট্রিট জার্নাল: ডিফাই ক্রিপ্টো মার্কেট বুম-এবং এর সাম্প্রতিক অস্থিরতাকে জ্বালানি দিতে সাহায্য করছে

The Wall Street Journal (WSJ) recently প্রকাশিত an article declaring that Defi is a double-edged sword for the cryptocurrency market. By helping the cryptocurrency market thrive, it has also led to a surge in volatility.

"Dogecoin এবং এনএফটি have captured the public’s imagination, but money is also flooding into another hot, and risky, corner of the cryptocurrency market: DeFi,” writes the WSJ.

বিকেন্দ্রীভূত অর্থ বা DeFi is a generic term for financial services offered on public blockchains. Similar to traditional banks, DeFi অ্যাপস enable users to borrow, lend, earn interest, and trade assets and derivatives, among other things. The set of services is often used by people looking to borrow on their crypto holdings to make even more significant bets.

“It’s essentially banking for the blockchain space,” said co-founder and managing partner of one of the largest firms in the DeFi industry, Nexo Capital Inc., Antoni Trenchev.

On the other hand, there are also two key differences from conventional banks. All services are designed for digital currencies rather than government currencies such as the dollar and euro. Moreover, there is no intermediary or centralized system through which transactions are processed.

Users usually access DeFi platforms through software known as decentralized applications, most of which utilize the ইথেরিয়াম নেটওয়ার্ক. They connect their ডিজিটাল ওয়ালেট to the application and choose a service from the drop-down menu. The functions performed in a traditional bank by a loan officer or cashier are automated.

As a result, many traders have turned to derivatives and arbitrage strategies across various DeFi applications, hoping to increase their profits in the hot market. Leverage is a key factor in accelerating the sales of Bitcoin এবং অন্যান্য ক্রিপ্টোক্রাকুলেশন in the past month. As prices fall, many bullish positions are automatically liquidated, which puts even more downward pressure on prices and leads to a vicious cycle of further liquidation.

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Source: https://coinquora.com/the-wall-street-journal-defi-is-helping-fueling-the-crypto-market-boom-and-its-recent-volatility/