ššš Urgent Update on $MANTA ššš
What is CeDeFi and Its Relationship with the Manta Network?
According to the Midas team, the new approach aims to reshape the image of DeFi by creating smart contracts to handle asset management under various lending protocols. This includes lending, borrowing, and soft leverage, ideally allowing capital to flow into the DeFi space. As with many CeDeFi endeavors, Midas aims to provide its clients with DeFi options tailored to their risk profile while allowing access to CeFi hedging tools. To understand CeDeFi better, let's first understand CeFi and DeFi.
Step-by-Step Breakdown
1. What is CeFi?
š¦ CeFi stands for Centralized Finance.
š Regulated Institutions: CeFi is a regulated financial institution that allows consumers to borrow or lend cryptocurrencies through a regulated exchange.
š³ Traditional Banking Similarity:
It works similarly to the traditional banking industry. Users use their cryptocurrency as collateral when borrowing money or earn interest on it when lending.
š”ļø Custodian Role:
The CeFi platform acts as the "custodian" of your digital assets. When you give up control of your cryptocurrency, CeFi "holds" it to make money.
ā ļø Risk of Hacking:
If the platform is hacked, your assets could be at risk.
š Market Share:
CeFi has a larger market share than DeFi because CeFi platforms are more widely used. Examples include Binance, Coinbase, and Diem.
šø High Fees:
CeFi's exorbitant transaction fees and lack of transparency have led to the rise in popularity of DeFi.
2. What is DeFi?
into the DeFi space.
4. CeDeFi and Manta Network:
š Manta Network's Role:
The Manta Network leverages CeDeFi principles to offer privacy-preserving transactions and DeFi services.
š”ļø Security and Privacy:
By integrating CeDeFi, Manta aims to provide secure and private financial services while maintaining the decentralized nature of DeFi.
