A blockchain company, 4DOT is deploying a yield-bearing, liquidity lock, De-Fi 3.0 platform that would make it easier for investors to navigate through the de-fi space by filtering out the noise through a clear-cut path.
Decentralized finance has come a long way since it was conceptualized. However, even with the growth of the sector, investor participation has not reached full potential due to the several hiccups and pain-points that are encountered due to the complexity of the space. With the advent of web 3.0, the de-fi space is working in concert to align with the concept of the decentralized web. Consequently, not all users have the inking of how to navigate the space. This is the reason why a blockchain company that is focused on the defi space is working to make it easier for investors to easily participate in the decentralized finance space without bothering about the nitty gritty of the space.
Overcoming The Challenges of De-Fi 2.0
The evolution of DeFi 3.0 was aimed at providing solutions to some of the challenges associated with DeFi 2.0. The space was designed to enable traders and investors to benefit from a decentralized financial system that is centered on the community and the participating entities.
Some of the challenges associated with DeFi 2.0 can be attributed to the inability of investors to determine the authenticity of the claims made by the teams behind them. A case study is that of Wonderland that claimed that staking funds on their platform would yield 83,000% in profits. There is also the fact that trending innovations in the de-fi space are accompanied by a bandwagon effect that confuses many investors. This has led to investor losses to the tune of millions of dollars. Another pain point is faulty codes that have resulted in security failures that gave malicious players such as hackers access to investors funds.
With Wonderland, it is obvious that many investors had no way of ascertaining that such massive profits were not practicable in yield farms despite the claims of the project team. This is why market analysts were not surprised when the token value dropped to $335 from a massive $10,000.
An Innovative Trend in Decentralized Finance
The concept of 4DOT is based on the transparency and decentralization of the Web 3.0. This makes it easier for investors to buy, hold or earn irrespective of what they know about the decentralized finance space. The company’s products are designed to enlighten the users while making them active participants within the ecosystem.
The platform ensures the security of assets through a comprehensive audit of all the smart contracts that are deployed on the system. Also all the products are designed for locking liquidity. This enables a high yield of all assets that will be in the pool until 2024, when it is officially launched. The liquidity farming platform is low-risk.