The Worldwide Financial System, Overseen by Conventional Banks, Asset Managers, and Financial Institutions Serving as Gatekeepers

Functions solely within regular business hours and enforces numerous restrictions on customers. Money transfers, especially international ones, can take days to complete and often require SWIFT codes, routing numbers, and other complex identifiers.

The conventional worldwide financial system, overseen by asset managers, banks, and financial institutions serving as gatekeepers, operates solely during regular business hours and enforces numerous restrictions on customers. Money transfers, especially international ones, can take days to complete and often require SWIFT codes, routing numbers, and other complex identifiers. Trade settlements may take 1-3 days, with funds remaining in the financial institutions. These limitations are akin to trying to run a modern Formula 1 race on a horse-drawn carriage track - the legacy systems and infrastructure, built for a bygone era, struggle to keep pace with today's financial needs. Different countries have their own rules, and getting all these financial institutions to work together smoothly is a real challenge.

In contrast, crypto platforms operate 24/7 and enable self-custody of funds. Crypto finance and DeFi facilitate instant, borderless peer-to-peer (P2P) transactions, creating a financial world that bypasses traditional centralized institutions. The increasing adoption of blockchain and digitized financial services is driving the DeFi market, which is expected to reach $450 billion by 2030, growing at a CAGR of 46%. Despite its multi-billion-dollar market size, the DeFi sector is only just starting to explore its potential compared to over one hundred trillion dollars in global bond markets alone, suggesting there is still a long way to go.

Innovations Boosting the DeFi ecosystem

Stablecoins - Digital dollars, pegged to fiat (usually the dollar), offer the stability of fiat with the flexibility of crypto; leading players are Tether (USDT), USD Coin (USDC), and Dai (DAI).

Lending and Borrowing Protocols - Facilitate peer-to-peer lending and borrowing of digital assets to help crypto holders earn returns on their holdings; notable players include Aave, Compound, and MakerDAO.

Yield generation mechanisms - enable crypto asset holders to maximize returns through strategies such as staking, liquid staking, and yield farming; players include Lido, Rocket Pool, and Curve Finance.

Apple iPhone 16, iPhone 16 Pro Release Date: New Report Reveals Extraordinary Strategy

‘Romania Robbed:’ Judging Error Overshadows 2024 Olympic Gymnastics Floor Final

‘Can’t Wait To Debate’: Walz Says He’s Eager To Face 'Creepy' And 'Weird' Vance

Cross-chain bridge platforms - Facilitate asset transfers between different blockchain ecosystems and help investors explore various networks to optimize returns; leading examples include Multichain (formerly Anyswap), Wormhole, and Hop Protocol.

Decentralized exchanges (DEXs) - Enable peer-to-peer transactions while handling billions in daily trading volume: Uniswap, SushiSwap, and PancakeSwap.

Maximize Asset Returns

Staking is when crypto holders lock their assets to participate as a node or validator on a blockchain. It is essentially putting your skin in the game - making a security deposit to validate blockchain transactions ethically by the network rules and help secure the network. As compensation, stakers earn extra coins, usually the same cryptocurrency they staked. The major drawback of staking, however, is illiquidity. Staked funds are locked up and cannot be traded or used for other investments during the staking period. Proof-of-Stake networks like Ethereum 2.0, Cardano, and Solana use these committed assets to secure the network and validate transactions.

Liquid staking resolves the illiquidity of staked assets by generating Liquid Staking Tokens (LSTs) that represent the cryptocurrency held in the Liquid Staking Protocol. These minted LSTs can be deployed on other protocols within the DeFi ecosystem to earn additional yields while the original staked crypto continues accruing staking rewards. This enables cryptocurrency owners to retain their ability to readily access funds and explore other investment options while still enjoying staking benefits. It's like having your cake and eating it, too - your cryptocurrency is staked, yet you have a token available for use. Imagine if you could use a proxy for your funds locked in a CD to engage in other financial activities while the actual money remains in the fixed deposit earning interest. Crypto makes this hypothetical scenario real, through liquid staking.

鋳造されたLSTは、リキッド・再ステーキング・プロトコルで再ステーク/預け入れることができ、これによりリキッド・再ステーキング・トークン(LRT)が作成され、資産保有者は追加の収益を得ることができます。一部の高度なプロトコルは、基盤となるブロックチェーンと直接連携して、そのシステムにネイティブな新しいトークン、つまり、ネイティブのリキッド・再ステーキング・トークン（nLRT）や再帰的、複合、またはレバレッジド・リキッド・ステーキング・トークンを作成します。これらのトークンにより、資産保有者は従来のプルーフ・オブ・ステーク報酬と追加のステーキング報酬の両方を獲得できるようになります。

DeFiエコシステムにおけるイノベーションの急速なペースに伴い、リキッドステーキングを独自に実装したプラットフォームが出現し続けています。そのようなプラットフォームの 1 つが YieldNest です。

YieldNest は、最適な収益と簡素化されたユーザー エクスペリエンスを目指して設計された革新的なリキッド リステーキング製品でステーキング環境に革命をもたらします。リキッド再ステーキングトークン (LRT) とネイティブリキッド再ステーキングトークン (n

) を利用することで

The above is the detailed content of The Worldwide Financial System, Overseen by Conventional Banks, Asset Managers, and Financial Institutions Serving as Gatekeepers. For more information, please follow other related articles on the PHP Chinese website!