It isn't clear to everyone why #DeFi is better than TradFi.
Sure, bringing financial services to #crypto is cool - but why is it better?
In this thread, I'm going to explore the benefits of trading stocks using @mirror_protocol to illustrate the power of #DeFi 🪞 🧶 👇
Sure, bringing financial services to #crypto is cool - but why is it better?
In this thread, I'm going to explore the benefits of trading stocks using @mirror_protocol to illustrate the power of #DeFi 🪞 🧶 👇
1/ Mirror Protocol (@mirror_protocol) allows you to trade stocks the same way you trade cryptocurrencies in #DeFi 🪞
You can
– Buy / sell synthetic stocks (called "mirrored" assets) on a DEX.
– Farm them for yield (long or short) just like with any other tokens. 👨🌾
You can
– Buy / sell synthetic stocks (called "mirrored" assets) on a DEX.
– Farm them for yield (long or short) just like with any other tokens. 👨🌾
2/ Now why anyone would want to do that instead of just buying stonks on @RobinhoodApp?
It's easy to understand why 19% interest in @anchor_protocol is better than 0.5% in a TradFi savings account.
But why #DeFi stocks over TradFi stocks?
Here are some reasons 👇
It's easy to understand why 19% interest in @anchor_protocol is better than 0.5% in a TradFi savings account.
But why #DeFi stocks over TradFi stocks?
Here are some reasons 👇
3/
1. 24/7/365 trading 🕰
No M-F 9:30-4pm BS.
None of this bank holiday nonsense.
People should be allowed to access their money WHENEVER they want.
ANY time day or night, weekend or christmas, or bank fkn holiday.
#DeFi solves this.
1. 24/7/365 trading 🕰
No M-F 9:30-4pm BS.
None of this bank holiday nonsense.
People should be allowed to access their money WHENEVER they want.
ANY time day or night, weekend or christmas, or bank fkn holiday.
#DeFi solves this.
4/
2. DeFi Stocks are Globally Accessible 🌍
There are 200+ countries.
In the majority of them, it's INCREDIBLY difficult to get access to US stocks.
This means citizens in those countries cannot get exposure to the best companies in the world.
#DeFi = equal opportunity
2. DeFi Stocks are Globally Accessible 🌍
There are 200+ countries.
In the majority of them, it's INCREDIBLY difficult to get access to US stocks.
This means citizens in those countries cannot get exposure to the best companies in the world.
#DeFi = equal opportunity
5/
3. Direct Transfers of Assets 📦
Have you ever tried transferring #stocks from one brokerage to another?
It's a nightmare - takes forever, requires paperwork, documentation, KYC, etc.
With mirrored stocks, it takes about 5 seconds - no paperwork needed.
3. Direct Transfers of Assets 📦
Have you ever tried transferring #stocks from one brokerage to another?
It's a nightmare - takes forever, requires paperwork, documentation, KYC, etc.
With mirrored stocks, it takes about 5 seconds - no paperwork needed.
6/
4. Instant Settlement ⚡️
Suppose you need to pay someone urgently. You think about selling some stonks to do so.
Good luck... Withdrawals on brokerage accounts take several business days.
< 5 seconds in #crypto.
Can even transfer mirrored stocks directly in a few seconds.
4. Instant Settlement ⚡️
Suppose you need to pay someone urgently. You think about selling some stonks to do so.
Good luck... Withdrawals on brokerage accounts take several business days.
< 5 seconds in #crypto.
Can even transfer mirrored stocks directly in a few seconds.
7/
5. It's another #DeFi lego 🧱
This is the best reason imo because of all the possibilities it unlocks.
Digital assets in DeFi-land can be plugged and played into other DeFi protocols like legos.
Simple example: you can use these stocks as collateral to borrow against.
5. It's another #DeFi lego 🧱
This is the best reason imo because of all the possibilities it unlocks.
Digital assets in DeFi-land can be plugged and played into other DeFi protocols like legos.
Simple example: you can use these stocks as collateral to borrow against.
8/
Unlike a margin account, you aren't restricted to your brokerage's rules.
You can plug your digital assets into any smart contract protocol.
Whole different ballgame.
Another example is that you can borrow stocks to short - most retail brokerages don't allow this easily.
Unlike a margin account, you aren't restricted to your brokerage's rules.
You can plug your digital assets into any smart contract protocol.
Whole different ballgame.
Another example is that you can borrow stocks to short - most retail brokerages don't allow this easily.
9/
6. Capital Efficiency:
Instead of just letting your assets gather dust in a brokerage account while you hope they appreciate, why not put them to work?
For example, you can provide liquidity & earn interest on your stonks.
The $mTSLA - $UST pair yields 30% APR currently.
6. Capital Efficiency:
Instead of just letting your assets gather dust in a brokerage account while you hope they appreciate, why not put them to work?
For example, you can provide liquidity & earn interest on your stonks.
The $mTSLA - $UST pair yields 30% APR currently.
11/
When you have programmable money / assets, it unlocks an infinite set of possibilities.
TradFi simply cannot compete with this.
The #DeFi legos we have today are just the beginning.
The most important ones haven't even been thought of yet..
🤯
When you have programmable money / assets, it unlocks an infinite set of possibilities.
TradFi simply cannot compete with this.
The #DeFi legos we have today are just the beginning.
The most important ones haven't even been thought of yet..
🤯
12/
My goal with this thread was to illustrate the power of #DeFi, and why something as simple as buying stocks using a decentralized protocol can be so much more powerful than using a brokerage like @RobinhoodApp.
My goal with this thread was to illustrate the power of #DeFi, and why something as simple as buying stocks using a decentralized protocol can be so much more powerful than using a brokerage like @RobinhoodApp.
13/
For the record, there are also more risks with DeFi #stocks - the space is still very young.
Smart contract risk is very real as well.
I'm not suggesting you sell your RH stonks, and buy them on @mirror_protocol.
I'm just trying to show how #DeFi is superior to TradFi.
For the record, there are also more risks with DeFi #stocks - the space is still very young.
Smart contract risk is very real as well.
I'm not suggesting you sell your RH stonks, and buy them on @mirror_protocol.
I'm just trying to show how #DeFi is superior to TradFi.
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