The DeFi Toybox

Courtesy of dreamstime.com

Play DeFi, Build Blocks

As children, the development of toys and play mirrors our own development. From rattles in the crib to the See ‘N Say as we begin to form words, we are given only what we can handle at a particular stage. As we grow and learn to resist the urge to put things in our mouths, we’re allowed to advance to toys like Legos.

It’s human nature to build and create, and Legos give children different opportunities to do so. Police and Fire Station playsets helped kids to design miniature cities according to their real-world counterparts. Medieval and Space-based playsets allowed children to engage their imagination against unfamiliar backdrops. Ultimately, when the sets intermingle, we take the building and creating in whatever direction we desire.

Courtesy of clipart-library.com

Connect 4

That stage of play is similar to traditional finance. It’s engaging and gives us a rudimentary sense of the world, but for developing minds it becomes wholly unsatisfying. Simplicity gets boring, so play becomes more complex and nuanced, adding elements of strategy and forethought.

Defibox in its current state is this next stage. Like the playground game Four Square, Defibox has delineated four protocols in order to hold serve in the decentralized finance space.

1. Swap: This protocol provides Defibox users with real-time pricing when exchanging assets, including swap mining bonuses for particular pairs. Automatic market-making allows participants to deposit proportional token pairs to collect fees based on transaction activity, and even create their own liquidity pools.
2. USN stable coin: Any Defibox user can stake EOS to generate USN and accrue interest based on an adjustable rate dependent upon price relative to the U.S. dollar. By over-collateralizing their assets, one can obtain floating capital while earning according to their risk tolerance. The liquidation mechanism helps Defibox maintain a solid foundation for USN.
3. Decentralized Lending: A recently added feature, this protocol allows users to deposit various assets and in turn, borrow against those assets while also earning…