In light of the recent buzz around DeFi and its remarkable benefits, this article describes 0VIX protocol, the next generation of DeFi lending and a money market protocol driven by the Polygon network. Also, a deep dive into the exciting features and importance of 0VIX will be discussed.
Introduction
Firstly, I want to point out that just because a platform or protocol tags itself as a “DeFi” does not mean they are part of the future of finance. Many other competing camps also have their ideas, such as community currencies (a type of alternative money), and the like. However, I am only talking about DeFi as it applies to the use of blockchain technology to provide financial services and capital. Another thing to be aware of is that DeFi is not a single entity. It is a set of ideas that apply to different systems. So let’s break down what Defi means.
Decentralized Finance, as we commonly refer to as DeFi, is an evolution of finance. I call it the future. It is a decentralized network that uses blockchain technology as its foundation to create a better and safer financial system. While many have tried to discredit the concept, this new type of finance has been gathering steam in recent years.
There are three core elements that define DeFi (not necessarily in order). They are:
Decentralization, Finance and Blockchain
Decentralization: This means that DeFi cannot be controlled by any single political entity or organization. It has to be open, transparent, and available around the world. User control over value and data independence is reestablished via decentralization. This is a significant change in the way we think about how a system should/can function.
Finance: This one is pretty easy to understand. DeFi is about the use of money for financial purposes, both for the transfer of funds and investing in capital. In this case, cryptocurrency is the money of choice.
Blockchain: This is a very important concept and might be the hardest to understand. Blockchain technology powers all forms of DeFi because you cannot have decentralized finance without a decentralized ledger as its core. Blockchain facilitates the validation and transparency of multi-step transactions and can further speed up data transfer procedures and offer secure transactions.
Beyond the core elements of DeFi, there are some other key aspects that make this movement so exciting. Another way that DeFi is changing finance is by allowing individuals to make loans without being charged for them by a centralized bank or credit card company. These loans are created on a blockchain and can be accessed by anyone at any time.
And, this brings us to the reason we are here; the importance of 0VIX protocol and why you need 0VIX. But first, you might ask >>>>>
What is ØVIX Protocol?
ØVIX protocol is a decentralized open-source money market protocol powered by Polygon that facilitates cryptocurrency lending and borrowing, enhanced by veTokenomics.
Importance of ØVIX Protocol
Let me first welcome you to the next generation of DeFi lending 2.0. The solution offered by 0VIX is necessary because there are several real-time problems that need to be resolved in order to make DeFi better. The issues include the following:
Security, lack of liquidity, and centralization.
Security
On the issue of security, one way or the other, we have all heard the horror stories of hacks and scams in the crypto space and these make the entire industry look bad in the public eye. Without security, any project will fail before it has a chance to succeed. 0VIX Protocol solves this problem by allowing users to transact on an immutable ledger while keeping their identities private through cryptography and other techniques. In order to enhance its security, 0VIX was audited by two high-profile blockchain security companies, Watchpug and PeckShield.
Lack of liquidity
The issue of lack of liquidity plagues many types of financial markets. Without liquidity, nothing moves, so traders will not make any trades. While 0VIX has no intention of taking away liquidity from the market, it does want to invent better ways to provide liquidity for the asset classes and financial instruments of the future.
Centralization
A system controlled by a single entity does not give control to its users, and permission is required to carry out all transactions every single time. Since DeFi is decentralized, it has to be able to work on various systems in order to fulfil its promise. One major concern was making sure that there was still a way for users to interact with each other without needing middlemen like banks and exchanges involved. 0VIX has created a protocol powered by Polygon network that will give users the ability to interact with other users in a decentralized manner. This will allow the system to scale infinitely instead of only having a very limited capacity.
The goals of ØVIX
0VIX’s goal is to build a system that solves real problems in the financial world by using blockchain technology. As a result, 0VIX protocol provides the following benefits: low transaction costs, a transparent platform, low volatility, access to an automated lending system, and no middlemen (banks and exchanges), making transactions very fast.
0VIX protocol aims to be open, transparent, and fair to all users. It wants to be able to interact with any other blockchain-based financial service on the market while still being decentralized and secure. It will do this by providing users with the tools they need, which will help them operate their services in a compliant manner while allowing them to remain decentralized, private, and secure.
Conclusion
0VIX provides an extremely important service for the future of blockchain-based finance as we know it. If it does its job, 0VIX will become one of the most important innovations of DeFi for centuries to come. We need to make sure that our money stays safe and we need to protect our identities from fraud. 0VIX protocol is providing all these things, and we are certain that the project will meet its goals and become the basis for future blockchain-based financial services around the world.
