The decentralized finance (DeFi) sector is easily one the most potent and promising parts of the world’s growing finance industry. As the name implies, decentralized finance removes central authorities and intermediaries from the sector, granting the public direct access to financial products at the best possible rates. Essentially, banks and other financial institutions can no longer exert their control over the market, putting the power into the hands of everyday individuals.
There are several advantages to using DeFi. One of the most noticeable is the autonomy it provides the public. Through DeFi, people transacting in the finance sector using various products have total control of their funds and can channel them as preferred. Also, DeFi does not enforce heavy restrictions on access to these financial products, unlike the traditional system that reserves many products to high net worth individuals. Another advantage of DeFi is reduced fees; since there are no intermediary banks or financial institutions, customers do not have to worry about the substantial fees these entities charge.
Today, several entities have seen the ease DeFi brings to the industry, and are looking to use this technology to disrupt the global finance sector. Some are launching new products, while others have goals for the general improvement of the market – one of these entities is the DeFi 3.0 Alliance.
What is the DeFi 3.0 Alliance?
The DeFi 3.0 Alliance is a global non-profit association formed to improve the DeFi sector and boost its all-around growth. The association focuses on the development, education, and global adoption of DeFi products, creating more affordable and transparent access for all. The alliance also promotes easy and secure use of DeFi 3.0 and Farming-as-a-Service (FaaS) solutions.
Cryptocurrency and blockchain technology generally form the bedrock of decentralized finance. Currently, many people use these offerings to build complex products for more advanced functions, or relatively simple transactions, such as cross-border payments. The vast potential available in this market ensures the continuous evolution of the DeFi, which is gradually morphing into the new DeFi 3.0. This potential drives the DeFi 3.0 Alliance to ensure that DeFi 3.0 and FaaS become recognized in the crypto and blockchain sector.
The DeFi 3.0 Alliance currently has eight entities serving as founding members. Each member is a leader in the DeFi space, with ample expertise and experience with related products. Each one also contributes to the entire group’s collective $150 million market cap and a community of nearly 100,000 users. The members include:
In addition to the above, the DeFi 3.0 Alliance will also welcome Foodfarmer.eth as an advisor. Nonetheless, the alliance welcomes all DeFi 3.0 or FaaS projects with credibility, demonstrable security, and the necessary drive required in the industry.
DeFi 3.0 Alliance Methods
There are several focus areas the DeFi 3.0 Alliance will use to achieve its aim to improve the DeFi 3.0 and FaaS sectors. Firstly, the association will invest in research and development (R&D) to create security standards that serve as minimum requirements for deploying secure FaaS and DeFi solutions. In addition to these standards, the alliance’s R&D efforts will focus on a technical framework that optimizes innovations and products for access across multiple chains.
The DeFi 3.0 Alliance will also promote information exchange on essential market issues and trends, which provides better DeFi 3.0 and FaaS performance. Furthermore, there will be efforts to promote and publicize DeFi 3.0 and FaaS to an expanded audience of potential market players and alliance members.
As part of plans to improve the sector, the DeFi 3.0 Alliance features an accelerator program that provides seed funding for new projects. Through direct investment from members and association funds, the alliance will afford innovative projects the liquidity they require to contribute to DeFi 3.0 and FaaS progress.