Decentralized finance is among the best innovations to emerge from blockchain technology. Decentralized, or DeFi, is an umbrella term that describes the various decentralized financial applications that incorporate traditional financial services in the cryptocurrency world.
Implementing new trends is a constant challenge for Decentralized Finance applications. In the DeFi market, there has been a rapid influx in liquidity-focused projects that have introduced a new DeFi 2.0.
DeFi 2.0 refers to a subset of DeFi Protocols that have been developed on groundbreaking technologies such as yield farming. DeFi 2.0 has led to new liquidity in several on-chain systems that are powered by native tokens.
DeFi 2.0 builds on the success of the original DeFi products and establishes a user base to build the basic components for future DeFi apps. The new trend in creating dApps that are business-to-business focused corrects the problem and gives utility back to users. This was originally the intention of decentralized financing.
DeFi 2.0 also acts as a catalyst to help solve major market problems such as rising Ethereum gas costs. DeFi 2.0 implements a dual-layer system with great scalability. It also introduces new levels of decentralization, which ironically was absent in earlier models of decentralized finance.
DeFi 2.0 is not only decentralized and scalable, but also gives staking and multi-chain swaps and NFTs a new purpose by empowering new protocols and robust functionality.
DeFi 2.0 has been adopted by many projects, but Asgard DAO stands out as one of their most exciting projects.
Asgard DAO – Decentralized Currency Reserve Protocol on BSC
Asgard DAO was one of the first to adopt DeFi 2.0. It created a protocol based on $Asgard Token, and backed up by a solid DAO. Project aims to provide protocol-owned liquidity for DAOs, and to prioritize decentralization during project development.
Asgard DAO fights the sharks that control DeFi’s protocols. The protocol gives every user with more than 1% of the current supply of the native token $Asgard the ability to vote, suggest and debate on the project’s development. Following a three-day vote period, the majority of votes were received and approved by voters, executable codes will be generated. To create an environment of governance that is transparent and free from bias, the DAO model has reduced the entry barriers.
Asgard DAO also incorporates the need for robust staking protocols by allowing users to stake $Asgard through Asgard’s dApp website to earn rewards. The reward is derived from bonds sales, which vary depending on how many tokens are staked and what the reward rate. Liquidity Provider to Asgard tokens can be traded for bonds. Asgard DAO makes it easy to purchase bonds.
Asgard DAO shows the power of DeFi 2.0 in combating the negative aspects and shortcomings within the crypto/DeFi space.
Tezos photo on Unsplash