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Why DeFi Is the Next Wave of Financial Innovation for Individuals and Institutions

Venus Protocol is the top algorithmic-based money market system on the BNB Chain designed to enable a completely decentralized finance-based borrowing and lending system for its users in a secure environment. To get started with Venus, simply visit app.venus.io and connect your wallet.

What is DeFi?

Unlike the traditional financial system, DeFi is built with the goal of democratizing finance without any discriminatory restrictions.

One of the top advantages of DeFi is that it gives owners control over their own funds. DeFi protocols use secure non-custodial wallets to store assets and a combination of autonomous smart contracts and community governance that enables a truly decentralized financial infrastructure.

Additionally, DeFi gives the unbanked population of the world a channel to access financial products and services without securing approval from a central authority as DeFi protocols are inherently permissionless.

Finally, DeFi protocols reduce transaction times by enabling users to transfer funds in seconds and without the exorbitant fees that are imposed by traditional financial institutions.‍

How DeFi is Ushering in a New Wave of Financial Innovation for Individuals & institutions‍

As mentioned previously, for individuals, decentralized finance can offer greater transparency and more robust security while replacing many of the current outdated financial processes which can lead to a truly decentralized and democratized financial ecosystem. The only barrier to entry to access the benefits offered by DeFi protocols is a functioning wallet and an internet connection.

DeFi is also currently gaining traction in retail borrowing, lending and trading due to the improvements in transaction speed, reduction of discriminatory policies, and true ownership of an individual’s assets.

For institutions, DeFi offers an entirely novel approach to yield generation, as well as access to a wide variety of innovative financial instruments that were previously unavailable through traditional markets. This subsector of the digital asset market has been largely untapped by institutional investors, however this is changing.

Large investment managers are typically averse to the fluctuations commonly observed in the digital asset market. However, the potential for upside has motivated some of these asset managers to allocate a portion of their assets into higher risk digital asset exposure. This has ultimately led to incremental increases in overall portfolio value that are beyond what they traditionally would have been.

Small allocations to digital assets are the first step for professional money managers and given the attractive risk-adjusted returns of digital assets, it can be safe to assume larger allocations to the space will be made in the future.‍

How Venus Protocol Enabled Individuals and Institutions to Participate in DeFi ‍

By combining favorable rates for borrowing, lending, and staking tokens with an intuitive, seamless, and secure User Interface, Venus Protocol is leading the charge in financial innovation for individuals and institutions through its DeFi offerings.