How DeFi 3.0 Adds Value To A Blockchain Ecosystem
Disclaimer: The text below is a press release that was not written by Cryptonews.com.
For many, decentralized finance, colloquially known as ‘DeFi’ is still a complex topic to navigate; however, through the help of community-focused initiatives, this is quickly changing. One such collective is the DeFi 3.0 Alliance, a non-profit association seeking to bring much-needed change to the DeFi sector. By pooling resources and experience from its members, the association wants to make DeFi 3.0 and Farming-as-a-Service (FaaS) a lot more transparent, usable, and affordable, ultimately ushering in widespread adoption.
The DeFi market, like most other offerings in the blockchain sector, has enormous potential and could blossom into one of the most potent aspects of this growing industry. With proper attention, DeFi 3.0 would become a crypto and blockchain lifeline that improves services for all involved stakeholders.
The journey to a successful DeFi 3.0 begins with individual players going the extra mile to ensure that their respective platforms provide outstanding service to users. This is what serves as the primary focus for Aggregated Finance (AGFI), one of the founding members of the alliance. AGFI intends to use DeFi 3.0 to add value to the entire blockchain system through its easy-to-use operations and membership in the DeFi 3.0 association.
AGFI’s Approach to DeFi 3.0 and Blockchain
The Aggregated Finance platform takes several approaches to improving the blockchain ecosystem through DeFi. Launched in 2021, AGFI began its operations focused on pooling community investments into yield farms. This approach rewards backers and $AGFI token holders, especially as the platform’s earnings and treasury continue to increase. To ensure this increase, AGFI conducts thorough analysis before deciding how to allocate customer funds. AGFI also takes precautions by hedging its treasury with the USDC stablecoin when analyses foretell a possible downward market trajectory.
Aggregated Finance also controls $AGFI token inflation. The ecosystem regularly burns tokens to control available supply and regulate inflation as much as possible.
On top of that, AGFI also uses a 10% reflection mechanism to help grow the ecosystem. The platform repurposes the percentage tax collected in two major ways. Firstly, AGFI’s treasury wallet earns 5% for every transaction. This keeps the ecosystem much healthier by improving the liquidity pool. From the returned funds, AGFI will grow its alpha investments and reward community members through buybacks. In addition to the treasury funds, token holders will also earn rewards from the reflection tax on transactions.
AGFI also has an established decentralized autonomous organization (DAO) that handles investments into other crypto projects. The DAO functions democratically, mirroring the opinions and desires of the AGFI community at large. For instance, the DAO will conduct periodic votes that allow the community to decide the best way to channel profits. This way, members of the platform can guarantee that investments and related actions would be in the best interest of all members.
AGFI currently has a market capitalization of just over USD 5 million, smaller than similar projects. Although these projects have valuations multiple times higher, they offer lower reflections, with some down to just 5%. On the other hand, AGFI has a higher reflection, and intends to increase its returns as trading volume grows, simultaneously growing the treasury fund and the rewards available to token holders.
Aggregated Finance has partnered with a decentralized identity solutions provider, Signata, to help infuse Decentralized Identity into AGFI’s upcoming Delegated Trader Services. Among other things, the Delegated Trader concept allows the community to vote on treasury decisions and investment implementations. In addition to identity solutions, Signata will also provide AGFI with security and custody services.
Perhaps the most notable advantage to AGFI is its membership in the DeFi 3.0 Alliance. Through the association, AGFI will invest in DeFi research and development for security standards in the sector. Furthermore, the alliance has an accelerator program for direct investment into new DeFi projects.
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