Thoughts and changes on DeFi liquidity mining
While many people don’t even understand the meaning of the word DeFi, some people have already reaped the benefits of liquidity mining. Since the earliest time in bitcoin mining, the mining industry has repeatedly created rags to riches legends. As the high tide of liquidity mining faded, many new miners are trapped at the top of the mountain. The mining market has entered a more rational phase. The market is searching for new thoughts and changes, waiting for the break out of another round of hot spots.
DeFi’s story has only just begun
DeFi can be interpreted as decentralized finance, also known as open finance. It refers to an ecosystem of financial applications created with the help of blockchain networks (especially Ethereum). DeFi’s most promising application scenario is the financial industry. DeFi has the potential to improve and reform the existing financial system with the support of blockchain technology and digital currency.
In the long run, once decentralized finance takes off, it will be unstoppable with the help of a proper incentive mechanism. Especially with the emergence of Uniswap, which has exerted a powerful impact on centralized exchanges. Various parties have been utilizing DeFi to fuel their growth, including market makers, loan lenders, insurance companies, and gaming companies. DeFi has built a prototype for a brand new financial system that is transparent, open-source, and programmable.
DeFi could revolutionize the way our financial system operates. It has the potential to drive global finance toward a more open and transparent future. This will become a monumental moment in the history of blockchain applications.
Thoughts from the average investors
In Nassim Taleb’s book, Anti-fragile: Things That Gain From Disorder, he mentioned an interesting idea. When building your own anti-fragile system, you should be ‘proactive and rational in trial and error’. Simply put, in a high-risk area with considerable growth and plenty of room for learning, one must allow oneself to continuously, actively, and rationally trial and error until one finds the right approach.
An average investor must learn to think. A seasoned investor must learn to change.
First of all, everyone needs some time to accept unfamiliar things. Our thoughts determine our actions. Thus it is essential for you to first acknowledge that something is worth exploring. Whether you will be making money or not, you have to actively participate first.
Secondly, one must choose a suitable approach. Mining has been the most profitable avenue. Average new miners might be rather unfamiliar with things like Bitcoin mining, Ethereum mining, mining machine hardware and codes. However this situation has changed since the emergence of mobile phone mining, liquidity mining, cloud mining and so many other new concepts. We can only conclude that the entry barrier of mining is becoming lower and lower.
The key is to choose the most effective investment strategy. Seasoned investors often fall victim to ‘domestication’. They have experienced the volatility of the market. Hence they are often too intimidated to participate in new opportunities. They will unload their assets like hot potatoes as soon as the coin price sees the smallest growth. Very few people have the gut to hold onto valuable coins between bull markets and bear markets. Short term swing trading is not the best strategy.
While the mining market is highly volatile, it is also full of potentials. Two years ago, some visionaries have predicted that distributed storage will witness a significant development. They took part in the heated competition on Filecoin cloud mining. Finally, Filecoin main net came online in October 2020. However, due to Filecoin’s economic model and the upfront collateral token issues, its mining power came to a standstill. Large amount of assets were trapped. The mining power incomes are non-transparent.
DeFi + the NFTization of the mining power market
With the development of DeFi, it will definitely create more innovative instruments. If you want to seize the mining market at the top of the blockchain industry pyramid, you must make one slight adjustment to your strategy. Join the cloud mining power market. It is best to enter this market by selecting a platform that carries more effective mining power and has more diverse and flexible financial products.
Recently, a brand new DeFi + mining power NFT platform has emerged on the international market. It has attracted a lot of attention. This platform is now making its debut in China. The platform is named DMEX after Decentralized Mining Exchange. Its slogan is: mobilize your assets. This innovative DeFi combination has intrigued a number of mining pools and capital investors.
Whether it is Bitcoin, Ethereum or Filecoin, miners of such high-quality digital assets will serve as strong pillars for the mining power market. The underlying logic of DMEX reflects exactly that.
In order to address Filecoin’s issues, DMEX proposed to tokenize effective mining power into NFT. The purchased effective mining powers can be freely traded. With the addition of DeFi’s collateral backed loans and other financial leverage services, more financial instruments will become available and asset liquidity will be greatly improved. There will be more sources of income than just simply mining and selling the coins. Moreover, DMEX also introduces the DAO governance mechanism. It guarantees the fairness and authenticity of the platform rules. Both miners and users can get maximized benefits under DAO. It also minimizes the risk of defaults. With the protection of DAO, DMEX users need not worry further about Filecoin income losses caused by miner defaults.
DMEX offers genuine and transparent mining power data. It has recently collaborated with several other mining pools and token exchanges to provide more effective mining power as the support for its underlying assets. DMEX creates a brand new application space for decentralized finance. It is far more difficult for an equitable, genuine and innovative decentralized mining power financial services platform to truly stand out against ordinary blockchain projects. Through thick and thin, we will wait and witness.