DeFi vs CeFi

Hello everyone, I'm Terry. Today I'm going to talk about what is DeFi and SurferFi, what are their differences, and their own advantages and disadvantages. The main reason is that there was a lot of trouble with the UST before, and there is also a lot of trouble with a big SurferFi platform. So if you are interested in decentralized finance or encrypted currency, I think this episode should be a little helpful for you. Crypto has been developing for several years now.

Bitcoin has been around for 13 years from the first block to the first block. With the development of the blockchain and encrypted currency, there are many platforms and different financial systems slowly emerging. The Anchor Protocol that we experienced a while ago is a kind of DeFi application. The main reason I want to do this episode is because I talked to my dad on the phone about the concept of DeFi.

Although he retired, I was surprised that he was interested in DeFi and could accept this new concept. So I want to share this video with you. The main purpose of the video is to share a basic concept and knowledge with you. It is not a suggestion of any investment. The decision of investment can only depend on you. You should not do the same thing as him because of some YouTuber or someone on the Internet. Before making any investment, you should do your own research and understand the risks. Don't invest in risks you can't bear.

First, SURFY is Centralized Finance. It's a centralized financial system. For example, banks, credit cards, and mortgages, Visa, Mastercard, PayPal, and all other financial institutions related to money can be called SURFY. The above are all more traditional SURFY.

In recent years, because of the development of encrypted currency, there are also many new encrypted currency-related services. These platforms can let you store money inside, and then they take this money to invest again, whether it is to do job pressure, or to do loan, or to invest in other financial systems. In fact, the principle is the same as the bank. It just lets your money go to work, earn more money, and then give you some of the money you earn as interest.

The most important thing here is that it is centralized, which means that all the transactions are managed by a central system. Just like you lend money to the bank, it is based on your trust in them. I also have some Surfite platforms and put USDC in it, which is also my trust in them. These institutions have full power to support your assets.

So you have to trust and rely on them to ensure your security of deposits and the liquidity you can give when you need to raise money. The first is the opposite of Surfer. In Chinese, it is decentralized finance. Decentralized finance. In other words, the entire financial system is not controlled by a central institution or company. You may think, how does this work? In the past, this idea may be more difficult to imagine its feasibility. But because of the popularity of blockchain technology now,

These financial activities can be completely operated on the blockchain smart contract. In other words, it does not need to rely on a company or institution to operate, but can be fully automated to complete all transactions, lending, liquidity mining, and other financial activities.

And these activities are not done by a service provider or a company The biggest difference between centralized finance is that all financial activities are transparent You can find out the records of all transactions Where did the money come in, where did it go out, which wallet, what are you doing? On the contrary, the operating method of centralized finance is a set of systematic management

The company must control the risk by itself, protect investors' asset security, and ensure that the return rate of investment can pay the interest of the deposit. The largest DeFi chain is Ethereum. I forgot if it was the first or second Terra in the past few days, but since USC was decoupled, Terra has been directly GG.

When these DeFi or Surfer are making important decisions, the way of Surfer is that the company directly decides and can execute it. On the contrary, when DeFi applications need to make some changes or decisions, they usually need to vote through the community. That is to say, all users on the application, as long as you hold this token or coin, can make changes or suggestions. That is to say, as long as you are a user of this community, you can vote to support the changes you want. The proportion of the vote is usually based on the size of the DeFi chain you hold.

As for the risks, these two are also different. First of all, DeFi is currently not subject to any government or legal restrictions. The advantage is that anyone can use it. As long as you have a network and then generate a wallet like Metamask, you can start using DeFi in just one minute. No matter where you are on earth, what your identity is, as long as you have a network, you can use it. But the disadvantage is that if there is a bug on this blockchain smart contract today,

or if this DeFi is maliciously attacked, like what happened to Terra's UST last month, you have no insurance at all. No one will pay you back. You can't go to the company as a debtor because there is no such thing as the company. However, there are many third-party insurances on the market now. You can buy them to reduce your risk.

But in general, DeFi currently has no government control and no insurance. It relies on community developers and community voting to make some loophole assessments to ensure the security of the blockchain application. SoFi is relatively based on the company or institution to ensure the security of their assets and the risk of their investment. Most financial institutions in the United States have FDIC insurance, which means that if the asset you have there is closed by any institution or you have no way to repay your deposit, you will get this insurance.

Just like you put money in the bank and then this bank was robbed by a thief today You don't have to worry about your own deposit and you can't get it back

FDIC insurance is for traditional surfeits, such as banks and credit unions. As for the recent crypto surfeits, there are few FDIC insurance. If there is, it is just to protect your US dollar deposit. And there are mainly FDIC surfeits, mainly for trading. So some crypto surfeits will buy insurance themselves to give investors some confidence. Or use some assets that have insurance storage services such as BitGo or FireBlock.

So before investing in CryptoSurf, you must do your homework, understand the background of the team and company, and take your money with them to invest in either lending or mobile mining. This way you can know what investment they are investing in. Can you take this risk with confidence?

The biggest risk of DeFi is the loophole of blockchains, or there is a bug in the smart contract, or the entire financial system system has defects in design, causing the last time the USD was attacked. I think the risk of Surfer is likely to be the attack of the company's server to the hacker, because most assets are managed and controlled by a central institution. Another biggest risk of Surfer is that central institutions may not be transparent because of financial conditions, or investment losses, leading to the final failure to repay customers' deposits.

不像是DeFi 你可以看见所有交易 钱是怎么进来的 利息从哪里出去 这些都是透明公开的 Surfing的好处就是 你可以把钱存在里面 赚取一个固定的利息 而你不太需要担心说 这个钱要怎么去投资 或是要怎么控制风险 等于是平台 代替大家去做这件事情 然后把这个钱拿去做投资 赚到的钱 一部分分给你当作是利息 但是呢 就是因为这样子 所以你需要做很多功课 去了解这个平台的可靠性 跟是否你可以相信 他们能够保护好你的存款

and believe in their investment strategy and financial situation. Before I save money on any Surfite platform, I will learn more about where the interest comes from and how it is earned. Let's pause for a moment. Today's video is sponsored by YieldApp. YieldApp is a Surfite digital asset management platform founded in 2020.

Bitcoin is available in 2020.

If you are a newbie, you can start at least $100. No matter how much you invest, you want the same interest rate. In the app, you can transfer the currency for free. If you have the highest membership, you can pay out of the bank three times a month for free. In addition, if you buy currency, you can also use credit cards to buy directly, but you still have to fight for the fee. The operating principle of YieldApp is like this. You put assets in, such as the current support of Bitcoin, Stablecoin, and Ethereum.

Then they will follow a annual return rate table and distribute interest rates to you every day. For example, the annual return of USDC is currently 6-12%. See if you have pressed their YLD token. If you have, you will pay according to different grades. If you don't, there is a minimum of 6% interest rate.

Then you will think where this interest comes from The main principle behind them being able to pay this APY is to take the funds and manage them in the form of investment combinations It is equivalent to the more complex DeFi investment and other systematic liquidity trading strategies And other patterns and opportunities for relative value integration Through risk assessment and model testing, a comprehensive investment strategy is integrated to increase revenue and reduce investment risks The strategy and investment model have been thoroughly inspected by them

and use a perfect risk control model to make various funding distributions and investments. This strategy can reduce the overall cost of your own transaction and avoid the complexity, risk and time cost of your investment combination. For example, if you invest in DeFi yourself, you will have to pay a very expensive gas fee. Personal users are also difficult to access some opportunities to invest in companies and institutions. YieldApp has done a lot of research on both financial security and investment distribution. Research on the risk of smart contracts is also included.

I would suggest that before making any investment, you can go and look at the information of the founder and the team. You can find it on LinkedIn.

I have checked the online rating of this platform. Overall, it is quite high. Currently, YieldApp can only be registered on the web version. iOS and Android are expected to be released this week. In addition, the team also plans to open more entry and entry channels this year and release their own bank cards in the future.

My personal opinion is that this platform can help those who want to have a more stable return, but I don't have time to study the users of DeFi. I will put the registration link and the website in the information column at the bottom of the video. After registration, you can get up to 1000 YLD. It's still the same, all investments have risks. I invested in two principles. The first is to understand the risks and the reasons behind your investment. The second is not to invest in risks that you can't bear. The purpose of investment is to accumulate wealth and improve your life, not to make you more painful. So risk management is very important.

Alright, I hope this video has helped you understand the difference between DeFi and SurferFight and their respective risks. In fact, whether it's DeFi or SurferFight, it's easy to see a high return rate in the crypto world. The SurferFight platform I use has a stable return of 7-12%. Of course, the relative risk is accompanied by this high return rate.

Because in traditional financial institutions, like banks, there are too many officials and middlemen in the middle. So your investment return is very low. For example, you put money in the bank deposit, and many layers of meat are cut in the middle. Like the Chase Bank I used in the United States, the deposit account annual return is only 0.01%. But it's relatively safe. I may not have to worry about this bank going bankrupt in my life.

And if the bank is closed, I can get the money back. The advantage of Crypto DeFi and Surfer is that the middleman is removed and there is no FDIC insurance. So the return you get is much higher than the money in the bank. But you will also have a lot of risk to consider. As I mentioned in the previous video, the last UST incident, I think even a very safe USDC, no one can guarantee that it will never decouple. If you invest in DeFi, you need to consider smart contracts and the risk of a loss of the ecosystem.

同样,设法也是一样,你需要考量这个团队的可靠性,他们创造的回报能不能去支付投资人的利息,这些都是高回报,半水准的高风险。 那如果你觉得这集对你有帮助的话,记得一定要帮我把影片点个赞,也欢迎你在底下留言告诉我你的看法,那我们下次见咯!