PGS Token
April 10 th, 2021
Decentralized Finance Evolution
DeFi products and markets are constantly morphing and will be subject to continuing evolutionary trends as core decentralized infrastructure products become more viable while others devolve. In the early 2020s, the DeFi technology infrastructure was insufficiently developed to support DeFi growth estimates and growth potential. To truly fulfill its potential, the DeFi infrastructure development necessitates significant tradeoffs between scaling, security, and levels of decentralization. The trade-off between transaction approval speed and immutability has the potential to undermine the DeFi infrastructure in the long run. Achieving broad consensus among key stakeholders to implement major upgrades is costly and often challenging. All information must be distributed to all parties publicly, then validated through distributed consensus, and stored, a process which requires a great deal of computational power.
The amazing parts of DeFi
Firstly, there are quite some different stable coins on the market like $USDT, $USDC, $DAI, $BUSD, $PAX… Secondly, many traders actively use stable coins as temporary “safe harbor” between trades if crypto markets are going down. Thirdly, there is an arbitrage opportunity in stable coins, because they are fluctuating themselves in value — even if they were meant to be “stable”. Tokens are at the heart of DeFi. They are used for many different purposes. If you e.g. invest into a pool on Uniswap, you’ll get back Uniswap LP tokens (LP stands for liquidity provider) for that respective trading pair. Ownership of these tokens are your proof that you provided liquidity to that pool. To get your assets back later-on you simply give back your Uniswap LP tokens to the smart contract and get back your original assets DeFi offers a unique solution: synthetic products that allow conservative investors to receive interest on their stablecoins and enable traders and crypto optimists to leverage ecosystem current positions. The true brilliance of DeFi, however, is the issuance of governance tokens. Those tokens really hit the nail on the head by allowing truly exponential returns on invested capital, while, at the same time, radically democratizing protocol governance and promoting true decentralization. This has enabled DeFi to become the purest form of a decentralized autonomous organization, which we have at the moment. The users can directly interact with the smart contracts through the crypto wallets which rules out the inclusion of any of the middlemen. There are no restrictions imposed as anyone from anywhere can create and access the decentralized finance applications. With Pegaswap Let’s bring excellent parts into our super garden fresh.