fbpx

4 Reasons why SIX Protocol is essential for your NFT project

4 Reasons why SIX Protocol is essential for your NFT project

4 reason

Table of Contents

 

Here are 4 reasons why you need to connect with SIX Protocol (if you’re interested in joining the NFT land)

#1 SIX Protocol offers valuable tools to help you start your NFT journey!

#2 You will get to be working with the team behind various world-class NFT projects

#3 You can be a part of a strong alliance of top industry-leading businesses

#4 SIX Protocol helps you save cost and time

 

 

Don’t miss out follow us at:

Khanathat Chowpradith
Khanathat Chowpradith

Web3 Marketer | Passionate Writer | NFTs enthusiast

Related Posts

SIX Token is Listing on Bitget Best Copy Trading Platform on April 29, 2024

SIX Token จะถูกลิสต์บน Bitget แพลตฟอร์มแลกเปลี่ยนคริปโตชั้นนำ

SIX Token จะถูกลิสต์บน Bitget แพลตฟอร์มแลกเปลี่ยนคริปโตชั้นนำ ในวันที่ 29 เมษายน 2567   SIX Network บริษัทผู้ให้บริการด้าน Blockchain Solutions ได้ประกาศการลิสต์ SIX token ($SIX) ใน

Read More

3 Reasons Why Business Should Use Tokenization

3 Reasons Why Business Should Use Tokenization

3 reason

Table of Contents

Blockchain technology is now serving as new platforms and applications for businesses. It enhances the capabilities to process and reduce costs, moreover, it reflects trust for an organization and with partners and customers in a long run.

 

Upon trust and credibility, blockchain technology is versatile ranging from companies operating in investment, banking, insurance, data transferring, creative content, etc., and can derive immense benefits for each business.

 

For instance membership points can be implemented with the business tokenization to turn points into tokens that can be used for trading and/or investment including NFT for virtual collectibles stating the privilege of the holder. 

 

In this article, we’ll see what Business Tokenization by SIX Protocol support in the expansion of business wanting to adopt blockchain system.

3 Points Tokenization is Transforming the Business Ecosystem

Reason 1 – Powerful Tool of Interoperability

 
The options are endless, from the Internet of Things to Artificial Intelligence and industrial automation. Blockchain is another technology worth considering as it can serve companies in issuing and managing their own cryptocurrency, NFT, or blockchain as an initial driving force.
 
For example, “Real estate operates around individuals’ ownership of lands, it only makes sense to apply NFTs to the real estate industry as it eliminates human error. However, a business will need to develop a backend system that can ensure the safety of both buyers and sellers.

“The rise of NFTs for Business Development: How SIX Protocol can help utilize NFTs for your business.” SIX Network, https://sixnetwork.medium.com/the-rise-of-nfts-for-business-development-en-4fe5616900dc. Accessed 20 June 2022

Therefore, NFTs minted as evidence of ownership are known as Asset-backed NFTs.

 

And so, endless opportunities come with versatility. It might be compatible to use one chain at the moment and the other might be a better option. The cross-chain function is the key to successfully managing tokens, NFTs, and assets.

 

Services at SIX Protocol like Initial Asset Offering (IAO) and cross-chain functionality come in handy for companies looking forward to embracing interoperability tools.

 

Reason 2: Collaboration

 

 

Reason 3: Momentum of Innovation

 

Tokenize Business implementing blockchain is the need of the hour to find ways to achieve more with less. When businesses start involving tokenization bring it a step closer to digital transformation.

 

The technology is unlocking worldwide reaching any possibilities, missing out on these advantages means the business may fall behind the competition.

 

For all the points stated above, SIX Protocol can support firms in reaching the business tokenization and be a strong part of well-known businesses alliance as the ecosystem’s nodes validator.

 

Tell us if you are interested: https://bit.ly/business-node

Business Tokenization Core Advantage

Don’t miss out follow us at:

Khanathat Chowpradith
Khanathat Chowpradith

Web3 Marketer | Passionate Writer | NFTs enthusiast

Related Posts

SIX Token is Listing on Bitget Best Copy Trading Platform on April 29, 2024

SIX Token จะถูกลิสต์บน Bitget แพลตฟอร์มแลกเปลี่ยนคริปโตชั้นนำ

SIX Token จะถูกลิสต์บน Bitget แพลตฟอร์มแลกเปลี่ยนคริปโตชั้นนำ ในวันที่ 29 เมษายน 2567   SIX Network บริษัทผู้ให้บริการด้าน Blockchain Solutions ได้ประกาศการลิสต์ SIX token ($SIX) ใน

Read More

SIX Protocol Individual Node Validator: The Big Opportunity For Small Individual

SIX Protocol Individual Node Validator: The Big Opportunity For Small Individual

individual-node-validator

Table of Contents

 

 

 

Jumping Start with SIX Node Validator — An Opportunity For Small Individual

 

Once your validator starts, you will receive the passive rewards you may earn shared from the protocol’s gas fee according to the percentage of its validation period that has passed.

Role Title and Benefits of Individual Node Validator

 

       1. Distributed consensus protocol.

       2. Execute transaction.

       3. Maintain and execute the performance of blockchain infrastructure.

 

 

       1. Be a part of block validation in the chain.

       2. Receive passive reward shared from gas fee.

       3. Inclusive opportunity with the network.

 

 

Don’t miss out follow us at:

Napathsorn Unchit
Napathsorn Unchit

Passionate about financial world and is an inverstor too! Giving out news update and blog post every month.
Visit us at SIX Network for more.

Related Posts

SIX Token is Listing on Bitget Best Copy Trading Platform on April 29, 2024

SIX Token จะถูกลิสต์บน Bitget แพลตฟอร์มแลกเปลี่ยนคริปโตชั้นนำ

SIX Token จะถูกลิสต์บน Bitget แพลตฟอร์มแลกเปลี่ยนคริปโตชั้นนำ ในวันที่ 29 เมษายน 2567   SIX Network บริษัทผู้ให้บริการด้าน Blockchain Solutions ได้ประกาศการลิสต์ SIX token ($SIX) ใน

Read More

5 Benefits of Becoming SIX Protocol Validator Node for Your Business

5 Benefits of Becoming SIX Protocol Validator Node for Your Business

Benefits from being Validator Node

Table of Contents

Previously, our team had launched the SIX Protocol official website and shared some updates on our operation. Everyone can now find the information about the overall picture of the SIX Protocol there!

As SIX Protocol contains many fascinating aspects, it is essential that we shine the light onto each element for the community of holders, projects, or businesses to benefit from SIX Network’s first-ever public blockchain. Subsequently, the highlight of the SIX Protocol that we would like to elaborate on more today is the SIX Validator Node Partnership program. Let’s get started!

Before moving on, here’re some recaps about SIX Protocol’s Business Node (Validator Node) & Individual Node.

 

In SIX Protocol, the validator node will be necessary as the fundamental portion of the Protocol’s blockchain infrastructure engaging in consensus since SIX Protocol wants to cover a wide range of services. Therefore, there are two types of nodes available for interested candidates to join: the Business node and the Individual node.

Variation of Validator Node

Business Node (Validator Node)

The Business Node is responsible for validating and securing the transaction that occurs on the SIX Protocol. Being one of the business nodes will benefit businesses and corporates that desire to build services on the blockchain and be prepared for the Web 3.0 era. Each business node will be rewarded in SIX from the transaction fees based on the overall performance of the Protocol.

 

The Business Node Requires 1,000,000 SIX as an initial deposit for setting up the staking system.

 

NOTE: A group of individuals who can combine up to 1,000,000 SIX can become one of the business nodes as well! (Limited number of nodes) So, even if you don’t have all 1,000,000 SIX to yourself, don’t worry! You will be able to join as a business node once you have joined forces with your friends to commit 1,000,000 SIX as a group.

Individual Node

 

Like the Business Node, SIX Protocol’s Individual Node will secure SIX Protocol infrastructure and enhance the blockchain performance. The individual node will also receive rewards in SIX for being a part of the chain’s operation.

 

The Individual Node Requires 20,000 SIX as an initial deposit for setting up in the staking system.

Join SIX Protocol node validator partnership

Why is Validator Node Important to the SIX Protocol Ecosystem?

In brief, the validator node is like a group of classroom members. There are a lot of activities that occur on the SIX Protocol Chain, and those activities need approval from the members. 

Subsequently, when you become a validator node for the SIX Protocol, you have the power to propose or approve the activities in the chain. SIX Protocol can’t be functional without the node validators.

Benefits for Businesses

You may wonder why your business must join the SIX Protocol ecosystem as a node validator. What benefit will you get?

 

Benefit 1 — If your business wants to issue a token, SIX Protocol makes it easy.

 

On SIX Protocol, businesses can easily issue their own token to the destination chain, both in cryptocurrency and NFT. The ground-shaking part is that the token issued by the SIX Protocol has a unique property of cross-chain utility, which means the token itself can exist on multiple blockchain networks, making the token distribution process reach a more comprehensive range of users.

Benefit 2 — You will earn the share of SIX Protocol transaction fees.

 

By keeping the chain running as one of the validator nodes, you will get rewards in SIX from the transaction fees, which are based on the overall performance of the Protocol.

 

When the business tools are still being built in the early days of the development process, we’re happy to let you know that each business can keep the node running to receive rewards before your enterprises’ projects can be launched.

 

In addition, as the SIX Protocol is building its ecosystem to be filled with many enterprises from various industries, validator nodes will be able to receive the reward in other tokens or NFTs from other businesses that joined the SIX Protocol as well.

Benefit 3 — You will become a part of a strong alliance with well-known businesses.

 

SIX Protocol’s validator node partners ​​are recognized as top-leading professionals in particular industries’ B2B and B2C operations. Our validator node partners range from real estate enterprises, the music and entertainment industries, department stores, online selling segmentations, digital content production firms, digital media agencies, and more.

 

When your business is joining the SIX Protocol, you are entering the same network as those significant partners as well.

Benefit 4 — You will be eligible to use powerful add-on services to help you integrate blockchain technology for business development.

 

Apart from the core structure of the SIX Protocol to help businesses migrate to the on-chain world through issuing cryptocurrency and NFTs. SIX Protocol also offers consulting services for supply figures, token distribution plans, vesting plans, randomized services, airdrops, etc.

 

Suppose you’re one of the business nodes; you will also be able to access all of the SIX Protocol’s facilities, including in the SIX Toolkits, including token autonomy management, web 3.0 Integration, business tokenization, and many more.

 

Also, the business node will be eligible to access all of the SIX Protocol’s facilities, including in the current SIX Toolkits such as token autonomy management, web 3.0 Integration, business tokenization, and many more to come in the future.

Benefit 5 — Get direct support and advice from the experts.

 

Building a project on the blockchain isn’t an easy task, but with the right partner, anything is possible!

 

Our team at SIX Protocol is full of passion-driven individuals and experts in various areas who are happy to help you and your team figure out the best way to unleash the true power of digital assets and take your business to the next level!

Summary

 

As mentioned above, the validator node is like a group of classroom members who can help approve the activities on the SIX Protocol Chain; in the future, we will introduce the governance part of the network for you to get more involved with what we do.

As of now, SIX Protocol’s Partnership program is open for everyone to join either as business nodes or individual nodes.

 

For businesses and enterprises, if you’re interested in exploring the possibilities of utilizing blockchain technology and smart contracts for business development or would like to discuss ways we can customize a project for your business, please feel free to contact our Business Development team at https://bit.ly/business-node

 

For individuals who are interested in joining our ecosystem to complete the mission to unleash the true power of digital assets, you can kindly join the exclusive waiting list here: https://forms.gle/wAQzLcXijneVuC3i6

 

If you wish to learn more about SIX Protocol, feel free to visit our website here: sixprotocol.com

Don’t miss out follow us at:

Khanathat Chowpradith
Khanathat Chowpradith

Web3 Marketer | Passionate Writer | NFTs enthusiast

Related Posts

SIX Token is Listing on Bitget Best Copy Trading Platform on April 29, 2024

SIX Token จะถูกลิสต์บน Bitget แพลตฟอร์มแลกเปลี่ยนคริปโตชั้นนำ

SIX Token จะถูกลิสต์บน Bitget แพลตฟอร์มแลกเปลี่ยนคริปโตชั้นนำ ในวันที่ 29 เมษายน 2567   SIX Network บริษัทผู้ให้บริการด้าน Blockchain Solutions ได้ประกาศการลิสต์ SIX token ($SIX) ใน

Read More

Crypto Campfire by SIX 6 Episode Summary

Crypto Campfire by SIX 6 Episode Summary

a summary of crypto campfire by SIX 6 episodes

Now, “Crypto Campfire By SIX” has reached more than 6 episodes, so we have shortened some episodes for everyone to read. Anyone who wants to read the full version and other chapters besides what we have abbreviated can check out the rest at SIX Network Discord in the channel called💡⎪recap-education.

1. Crypto Campfire by SIX Ep.2 SIX Protocol with Moderator team from SIX Network 

 

What is the SIX Protocol?

 

SIX Protocol is a blockchain infrastructure layer built to help businesses migrate their assets into the Blockchain by issuing their tokens, including cryptocurrency and NFT, to the destination chain. The SIX Protocol teams also provide other consulting services such as supply figures, Initial Asset Offering Service (IAO), decentralized KYC, whitelist management, and many more.

 

Blockchain Technology 

 

Blockchain Technology can increase business opportunities. You can read more examples here.

 

Why choose SIX Protocol when there are other chains to choose from?

 

The SIX Protocol is a chain that businesses will choose because we cover a wide range of services, from IAO Services or Initial Asset Offerings, to helping businesses with tokenizing and supporting the rarity for NFT collections or even helping with Tokenomic plans. 

2. Crypto Campfire by SIX Ep.3 Money Management 💸 with Bear Face Trader 

 

Financial Pyramid or Risk Pyramid 🧐

 

The financial Pyramid helps us manage our money as to what we should invest in first. Starting to plan from the bottom up, divided into 3 parts: 1. Basic Needs and Risk management 2. Accumulation 3. Investment

 

What is the Future Trading?

 

Future is a market for trading futures contracts based on the price of cryptocurrencies in the market. There are two types: long trades, contracts that increase in value when the underlying coin price increases, and short trades, contracts that increase in value when the underlying coin price decreases.

 

What is Leverage?

 

It is to loan money to buy assets for an investment that can bring you more returns but can also make you lose more than before.

 

What is Stop Loss?

 

It is the point where we are making profits but do not want our profits to decrease, so we will set the Stop Loss point at that price that we want to reduce the risk of losing.

3. Crypto Campfire by SIX Ep.4 The Web 3.0 community manager with Ms.Mild from MetaWarden

 

How is Web 3.0 Community Manager different from regular Community Manager?

 

The difference is that we need to know the tech stuff in the world of Web 3.0 and keep up with trends. Being a community manager is not just customer support; it’s about providing activities, telling the project story so that everyone understands, and being like a friend who can talk about anything, not just about the project or trading.

 

What should a good community look like?

 

A good community is that we help each other build a community. Treat everyone with respect, listen to each other’s opinions, give advice, and educate each other.

 

Difficulty in building a community

 

The difficulty in creating a community is that we can’t meet everyone’s wishes in the community because everything has to go through discussions with the team about whether we should do it or not, which causes complaints or negative energy. 

4. Crypto Campfire by SIX Ep.5 Global recession and cryptocurrency 🤔 with I Learn A Lot

 

What is a Recession?

 

A recession is a business cycle contraction when a general decline in economic activity occurs. 

 

What is inflation?

 

Inflation is an increase in the prices of goods and services, but the value of the money is the same.

 

What is Bitcoin Halving?

 

The decrease in the number of Bitcoins mined every 4 years is known as Bitcoin Halving.

 

5 Ways to Cope with a market Entering a Recession

 

#1 Optimize your profile accordingly by creating a balanced asset distribution table.

#2 Try focusing on the coins you have in-depth research on, and cut out any coins you have invested in by mistake.

#3 Learning from your mistakes, investing with sufficient knowledge, reading great content, and having a good understanding of financial basics are essential.

#4 Reduce FUD news, instead, find many other news articles that contain credible and authentic information.

#5 Everything has a cycle, so don’t rush, stay patient, and wait your turn again. While waiting, observe ongoing trends and ensure you have a DCA portfolio that can deduct 10-20% of your salary by disregarding whether the price of a coin rises or falls. 

 

5. Crypto Campfire by SIX EP. 6 Metaverse with Crypto Mom

 

What is Metaverse?

 

Metaverse is a virtual world that uses the combination of virtual reality and mixed with the real world.

 

Metaverse Project Recommendation  

 

There are many projects in the world of Metaverse, but the ones we hear about the most are Otherside, The Sandbox, and Decentraland.

 

#1 Otherside is a platform developed by Yuga Labs, creators of Bored Ape Yacht Club. The Otherside project is a GameFi based on Metaverse, where thousands of players can also play together in real-time.

 

#2 The Sandbox’s a virtual world platform where players can create and own various assets within the virtual world.

 

#3 Decentraland is another virtual world that allows users to buy real estate within the game and develop real estate into a virtual world as a business. Users can also monetize those buildings by collecting ad rentals or real estate rentals.

6. Crypto Campfire by SIX Ep.7 Crypto world and business expansion💡 with Lady Crypto 

 

How is the cryptocurrency world connected to business?

 

There is a direct link to how many industries use blockchain technology for transparency and data tracking.

 

In the future, if most business turns to use Blockchain, will crypto be the general payment method? Will it be possible?

 

Stablecoin, the existence of this coin is to stabilize its price, which makes it easier to transfer the money without worrying about the cost going up or down. 

 

Besides trends, why do you think businesses are becoming more interested in Cryptocurrency and Blockchain?

 

Like during COVID19, we have to have social distancing, so everything happens online, including transferring the money in the bank application, which we can see only the numbers on the screen. But we can’t know what the bank has been doing with our money in real-time, which makes people more interested in Blockchain because they are reliable in transactions without intermediaries like banks.

“Crypto Campfire by SIX” live sessions will be on the SIX Network Discord. If you’re interested to learn more or join one of the sessions, please kindly click on this link >> https://discord.gg/5gJQCXzcWf

Don’t miss out follow us at:

Paveena Kusaranukun
Paveena Kusaranukun

Visit us at SIX Network for more.

Related Posts

SIX Token is Listing on Bitget Best Copy Trading Platform on April 29, 2024

SIX Token จะถูกลิสต์บน Bitget แพลตฟอร์มแลกเปลี่ยนคริปโตชั้นนำ

SIX Token จะถูกลิสต์บน Bitget แพลตฟอร์มแลกเปลี่ยนคริปโตชั้นนำ ในวันที่ 29 เมษายน 2567   SIX Network บริษัทผู้ให้บริการด้าน Blockchain Solutions ได้ประกาศการลิสต์ SIX token ($SIX) ใน

Read More

3 Important Factors Of Rebalancing Portfolio

3 Important Factors Of Rebalancing Portfolio

3-rebalancing-factors

Table of Contents

A few days ago I came across a question from a friend asking,
“Do you have time to explain to me what a rebalancing strategy is and when should I do it?”

 

I simply answered, “It’s the act of realigning your portfolio back to its origin allocation of the assets.”

 

If you ever wonder what often is the cause which helps investors to tolerate the risk they’re probably going to face during the trading trivial, the answer is how they manage their risk.

 

Rebalancing Portfolio is a simple investment technique which is a construction of a portfolio that fits individual risk tolerance and investment goals and has been used in traditional investment for decades.

Advantages of Rebalancing Portfolio

“First you must find what type of rebalancing will suit you best.”

 

There are two types of rebalancing, the first one is periodic-based and the second is threshold. Rebalancing your portfolio involves selling some investments and buying others to restore an investment portfolio that matches your target asset allocation.

Factor 1: “Risk management - the purpose is not because of the best return rate, but because the risk of the portfolio is returned to the planned level.”

Lets see the following example here

 

Assuming the portfolio has 4 different assets and set the level of risk allocation to 25% for each asset, total up to 100% in the portfolio.

 

Let’s say in 24 hours asset A yields 30%, B 20%, C 23%, and D 27%. To rebalance this portfolio is to sell off excess yield then buy back another, the proportion will return to the same level of 25% per assets.

I continue, “This is what is known as periodic rebalancing, you rebalance once depending on the time you presumably take. Also there is another type known as threshold.” I started explaining again.

 

The demonstration of a threshold rebalance depends on the owner’s setting level of how much they want to reset the portfolio which will trigger them when to react. Example when the assets are -+5% on an asset with a 25% target allocation, the rebalance will occur once.

 

 

“A rebalance would happen as soon as one of those assets consumes less than 20% or more than 30% of the portfolio value, referring to the previous example.”

How Rebalancing Portfolio Can Win the Market

When creating an investment portfolio, you should be familiar with the concepts of asset allocation and diversification. When a portfolio consists of different asset classes like governance token, altcoin, stablecoin for instance it’s known as asset allocation.

 

When you distribute your investment funds across different assets or sectors is known as diversification such as consisting of SIX, BTC, DOGE, FINIX and more in the collection. Having a handful of different assets with different characteristics, you are making a reduction of risk for each allocation. 

This figure is one of the examples of a rebalancing scenario conducted by Michael McCarty – Shrimpy Founder, showing a diversified portfolio.

Illustration of evenly distributed portfolios using rebalancing strategies varies from 1 hour, 1 Day, 1 Week, and 1 Month with a Holding portfolio. Returns results ranged from a $40K median with HODL to a $123K median through rebalancing every hour. (Investment of $5,000 value in 1 year.)

Common Rebalance Scenario

⦿ Sideways Movement – a simple sideways movement which takes place for a prolonged period. During this time, there are typically micro fluctuations, although the total value of the portfolio remains relatively flat.

⦿  Pump and Dump  – when a sharp increase in value is followed by a sharp decline in value for an asset. The result is a return to the original price.

pump & dump opportunity

⦿ Flash Crash and Recover – Situation when a sharp value decline followed by a sharp value increase returning to the original price, ending and initial value stays the same.

Expectation Versus Reality And What Action You Can Take

Not all coins are expected to rise or drop in value during the same period. But what you can do best to save your revenue is by protecting the cause of loss and changes that for the opportunity you can take advantage of.

 

“Remember when the market didn’t go as planned and you haven’t gotten any ideas to stop your loss and profit?”, I asked my friend.

 

“Ha ha sure”, she replies.

 

Winning the market is when you can profit in trading of either crypto, forex, or stock in any occurrence of the market scenario. Surely enough it is a hard task to win without a winning strategy. 

Factor 2: Therefore, a rebalanced portfolio is the opportunity cost to buy loss and sell profit of the diversified assets. 

 Most traders and investors are looking to beat the market with larger gains.

 

A highly diversified portfolio will lead to more average returns than a successful concentrated portfolio. Worse performing assets can balance out high earners.

Factor 3: Making suitable portfolio for each investment style and handling uncontrollable situation.

With that information, preparing yourself and using a bit of strategy will go a long way in creating a suitable portfolio for your risk tolerance. Worse case worse like in the situation where Bitcoin crash or wild swings of price within a day or a minute.

Closing Thoughts

1. Risk Management

2. Opportunity to make profit in every interval

3. Handling uncontrollable situations

Are the main important factors you might want to consider when it comes to crypto trading.

 

Rebalancing your portfolio involves selling some investments and buying others to restore an investment portfolio that matches your target asset allocation. It is better off to have a well balanced portfolio than risking it all in a situation which is incredibly volatile.

Thank you for your interest to invest with Definix!
Check out these channels for the latest update from SIX Network.

Stay tuned with us on these channels.

Napathsorn Unchit
Napathsorn Unchit

Passionate about financial world and is an inverstor too! Giving out news update and blog post every month.
Visit us at SIX Network for more.

Related Posts

SIX Token is Listing on Bitget Best Copy Trading Platform on April 29, 2024

SIX Token จะถูกลิสต์บน Bitget แพลตฟอร์มแลกเปลี่ยนคริปโตชั้นนำ

SIX Token จะถูกลิสต์บน Bitget แพลตฟอร์มแลกเปลี่ยนคริปโตชั้นนำ ในวันที่ 29 เมษายน 2567   SIX Network บริษัทผู้ให้บริการด้าน Blockchain Solutions ได้ประกาศการลิสต์ SIX token ($SIX) ใน

Read More

Yield Farming 101: The Guide Book To Farm On DeFi Platform

Yield Farming 101: The guide book to farm on DeFi platform.

DeFi

Table of Contents

How are DeFi and Cryptocurrency different?

In a simple comparison, cryptocurrency is an encrypted digital currency used as a medium of exchange wherein each currency has a storage of their own ledger. Similar use case as in any real world currency such as Dollar, Baht, Won, Yen, Euro, etc.

 

DeFi is similar, not equivalent to, bank but all financial activities can be executed here using code encryption of a smart contract to run the system of deposit, transferring, withdrawal of a cryptocurrency and more.

 

What is DeFi?

 

DeFi or Decentralized Finance is a space in the blockchain ecosystem acting as their own “bank”. Providing services such as Exchange(Swap), Lending, Trading, Fund, and other similar financial products served from financial institutions would have.

 

The only thing different in DeFi from a traditional bank is it doesn’t need any intermediary source to run instead every work is done on a smart contract written on a computerized technology, working for a full peer-to-peer function.



The Beginning of Decentralized Finance

 

We’re rolling back to the start of the first cryptocurrency in the world when Satoshi Nkamoto created Bitcoin in 2013. A young Russian genius Vitalik Buterin, one of the Bitcoin development team, branched out to develop the crypto and blockchain system and named it Ethereum.

 

Ethereum has a clear distinguishing highlight from Bitcoin is that Ethereum comes with Smart Contracts. This contract will only work and execute action if it is triggered with the correct source and every written code matches. 



Many developers have been building on top of Ethereum Chain widely because of Ethereum generosity of allowing them to use the space for free. It wasn’t popular at the start due to many still don’t having ideas in which areas to use. Time has passed and development of the blockchain has been explored more entering DApp era or Decentralized Application in order. 

 

The first DeFi platform that emerged on Ethereum chain and was so successful that it served as a model for many DeFi today is Compound DeFi, a lending platform that offers digital asset lending services similar to real-world banking systems.

 

Compound DeFi work is simple, users can deposit any coins and take interest as a percentage based on the amount deposited. The coins deposited will be gathered in the pool for users who would like to make a loan. The payable interest will be collected with the return received from the deposit will be at 10 – 100% per year, which may not be very high. But it’s worth more than depositing in a bank anyway.



Origin of Yield Farming

The success of Compound DeFi has made an impact that many more DeFi platforms are starting to mushroom. Competitive market has started at this point. Many platforms are trying to draw attention from users and DeFi platforms have released Governance Token for their own such as Comp from Compound DeFi, Aave Token from AAVE, MakerDao Tokkem, and more rewarding for those depositing coins to the platform.

 

Governance Token is created for the use in the DeFi ecosystem, such as the right for voting, modify gas fee, or add a new pair of coins to the system, in addition to holding a token to get special privileges. More platforms include using the token for a lucky draw, to buy NFTs which help improve the use of it and worth more according to the demand. 

 

It takes along the usability of governance token making it more popular until the birth of Decentralized Exchange or DEX, a new form of DeFi.

 

Many of you are probably already familiar with Binance, Bitkub, Coineone, or Bittrex. This type of platform is a Centralized Exchange (CEX) that allows investors to set prices to trade their coins through the platform.

 

But Decentralized Exchange will not be able to set prices to trade like CEX. Instead, the AMM system is used to calculate the price.

 

It is true that being a Decentralized Exchange must get ready for a higher traffic which means having good liquidity to supply the demand. Depositing cryptocurrencies for the platform is known as Liquidity Providing which piles up in a Liquidity Pool. 

Hence that you are coming nearer to what is called Yield Farming. Where a liquidity provider will receive Liquidity Provider Token (LP Token) to farm for even more profit to gain interest in governance token of the platform.

Choosing High Security Farm

There are countless DeFis out there today, both good DeFi and DeFi made to defraud investors. Therefore, choosing a DeFi platform to invest in is very important. We will use these 10 signs to make a decision. If it passes 6-7 out of 10, you can be confident that it’s a safe DeFi.

 

  1. 1. Audited by trusting auditors such as CertiK 
  2. 2. Transparency of the developer team or the ownership of the project is announced publicly with financial or investment experience. 
  3. 3. TVL exceeded 50 million dollars.
  4. 4. Operating no more than 3 months with no hacking history would be a plus.
  5. 5. Future of the Road Map is mapped out clearly.
  6. 6. Corporate team with trustworthy partnership.
  7. 7. Tokens are listed on well known exchanges such as Coinbase Binance for instance.
  8. 8. Smart Contract safeguard is open 24 hours such as the CertiK Skynet.
  9. 9. Governance Token can be found on Coinmarketcap or Coingecko is a good indicator.
  10. 10. Social space for the community must have significant numbers of members.

Token Paris for Farm

 

Stablecoin: Lower rate of fluctuation of the coin and Impermanent Loss, trade out with a lower return. The common pairs are USDT-BUSD KUSDT-DAI where APR lies around 10-60%.

 

Stablecoin – Altcoin: Medium rate of fluctuation with more return than the stablecoin. The common pair is BTC-BUSD where APR lies around 100-1000% depending on the market.


Altcoin – Altcoin: High risk exposure to fluctuation with promising returns such as BTC-BNB, APR lies around 100-1000% depending on the market situation.

Governance Token: Users can pair up Altcoin or Stablecoin with it with a higher return rate, but the impact from the market might affect the price as well.

Risks in Yield Farming

  1. 1.Rug Pull

Rug Pull is an analogy like we stand on a rug and then was pulled out causing him to fall unexpectedly. The owner himself took all the coins on the platform by writing a smart contract to create a loophole in the Rug Pull in the first place.

  1.  
  2. 2. Exit Scam

Exit Scam is where the owner leaves the project or no further development due to many reasons such as unfixed problems. The recent incident happened to Merlin, the announcement to end the development resulted in DeFi’s governance token dropping quickly, and the Exit Scam may also include a Rug Pull in some other cases.

  1.  
  2. 3. Hack

Being hacked is a non-intentional act of the owner. But someone outside can hack the smart contract code to fix something, since all source code on DeFi must be public. If the code written contains bugs or a small loophole it can be hacked. For example, the Icecream platform was hacked by a hacker to change the ownership to himself and mint more coins before selling and collecting other coins in this case.

  1.  
  2. 4. Decrease in value

Another big issue many overlook because they pay attention to APR and APY. The token can have a decrease in their value. Especially when it comes to pairs with high APR, such as governance token, there is a high probability of falling.

  1.  
  2. 5. Impermanent Loss

Farming users will eventually face impermanent loss or profit loss when there’s an involvement of coin pairs. For example SIX-BNB the deposit value was $1000 by holding individually one might gain whole profiting when the coin goes up. By farming in a pair it might lose its values due to AMM calculation creating divergence between price of the asset within the liquidity pool.

 

6. Hacked Wallet or Seed Phrase

The important part which requires high responsibility of the users to keep in mind and keep it securely is the decentralized wallet such as MetaMask, Safepal, Kaikas, or D’cent and more.

Usually people are hacked from the phishing action of a seed phrase or being hacked on a computer due to saving a file for their seed phrase.

  1.  
  2. 7. Phishing Scam

This pattern is an alternative for hacking by deceiving the victim into being trapped such as opening a source to fake MetaMask browser. Pretending to giving out a link claiming user will receive a special price, but losing all the assets from the wallet.

  1.  
  2. 8. Wrong Transaction

This classix human error causing a huge amount of loss by transferring to the wrong final address such as to the wrong person or to the token address, burning it without any way to retrieve.

DeFi is like the open sea, a new waters full of opportunities for everyone to step into it. 

But there is always a greater risk as well as big opportunities. The risk from users’ end can be reduced with our caution, but external risk factors such as the closing of the platform or hacking is out of our control. Therefore, choosing a reliable farm and safety is very important.

 

When it comes to security, Definix itself is the first choice most investors trust as Definix has been audited by world-class auditor CertiK and launched Certik Skynet, a 24/7 smart contract monitoring system. Plus, if something goes wrong, CertiK Shield will be compensating the insurance issuer.

Thank you for your interest to invest with Definix!
Check out these channels for the latest update from SIX Network.

Stay tuned with us on these channels.

Napathsorn Unchit
Napathsorn Unchit

Passionate about financial world and is an inverstor too! Giving out news update and blog post every month.
Visit us at SIX Network for more.

Related Posts

SIX Token is Listing on Bitget Best Copy Trading Platform on April 29, 2024

SIX Token จะถูกลิสต์บน Bitget แพลตฟอร์มแลกเปลี่ยนคริปโตชั้นนำ

SIX Token จะถูกลิสต์บน Bitget แพลตฟอร์มแลกเปลี่ยนคริปโตชั้นนำ ในวันที่ 29 เมษายน 2567   SIX Network บริษัทผู้ให้บริการด้าน Blockchain Solutions ได้ประกาศการลิสต์ SIX token ($SIX) ใน

Read More

Simple Rules To Follow For Crypto Risk Management

Simple Rules To Follow For Crypto Risk Management

risk allocation in fund management

Risk management is a vital element of success for any trader in any market. Losses are going to be inevitable no matter the size of the capacity you’re trading with or investing in, particularly in extremely volatile markets like cryptocurrencies.

Table of Contents

Last year we saw astronomical growth with remarkable gains from most major coins. Decentralized finance ignited a passion for yield farming and earning an attractive passive income on crypto assets, as well as enabling an entire ecosystem to go through a change of traditional finance.

If the crypto space is to continue to grow and attract and retain the interest of institutional traders, advanced risk-management tools that maximize gains for investors are required.

Knowing The Type of Risk:

● Credit Risk

Risk affecting crypto projects, mostly attributes to theft and fraud in crypto markets.

 

● Legal Risk

Refer to the risk of negative probability events occurring with respect to regulatory rules such as ban of cryptocurrency in specific regions. 

 

● Liquidity Risk

Risk in crypto trading of inability to easily exit a position to convert an entire position, in order to be on the “safer side”.

 

● Market Risk

Market risk refers to the chance of coin prices moving up or down contrary to your desire in an open position.

 

● Operational Risk

Operational risk is the chance that a trader is unable to trade, deposit, or even withdraw money from an exchange or in their crypto wallets.

Risk Management For Cryptocurrency Traders

There are many strategies out there posted by experts in the business, financial consultant, and other researchers a lot lately on how to manage your margin or portfolio wisely. But the ultimate rule for trading is:

“Do not risk more than you can afford to lose”.

It can be broadly categorized into four: Risk/reward ratio, stop loss & take profit, position sizing, and rebalancing portfolio.

▸ Risk/Reward Ratio 

In trading it is recommended to not trade under the ratio of 1:1 and should be starting from 1:1.5. This formula, R = (Target Price – Entry Price) / (Entry Price – Stop Loss), will enable you to know when to enter and when it is unprofitable.

 

▸ Stop Loss & Take Profit

Stop losses is an execution which closes an open position when a price decreases to a specific alignment. Saving you from trading in unprofitable deals. Taking Profits lets you get out of the trade before the market can turn against you.

 

▸ Position Sizing

Is where you position your margin of portfolio by dictating the possibility of coins or tokens that are willing to be bought by traders. It is wise to never invest all of your money in one place. The volatility of the cryptocurrency market means that any trade, even a seemingly perfect trade, can collapse and result in a significant loss. There are strategies involved. Read more.

 

▸ Rebalancing Portfolio

The process of realigning the weightings of an asset portfolio is known as rebalancing. Rebalancing entails buying or selling assets in a portfolio on a regular basis in order to maintain the original or desired level of asset allocation or risk.

 

 

Managing At Your own Risk

The temptation of buy and hold is one of the strategies newcomers will fall to use. Where you invest in a coin and leave the coin untouchable for an extent of a period. This passive strategy is often the simplest way and is associated with less risk. 

However, this approach will never allow you to profit significantly and retain you from exploring fun in crypto experience. Take risk, manage your portfolio, and we will see you next for our upcoming strategy that will apply to help us understand more during the decentralized fund management.

 

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, readers should conduct their own research when making a decision.

Fund management covering rebalancing

Thank you for your interest to invest with Definix!
Check out these channels for the latest update from SIX Network.

Stay tuned with us on these channels.

Napathsorn Unchit
Napathsorn Unchit

Passionate about financial world and is an inverstor too! Giving out news update and blog post every month.
Visit us at SIX Network for more.

Related Posts

SIX Token is Listing on Bitget Best Copy Trading Platform on April 29, 2024

SIX Token จะถูกลิสต์บน Bitget แพลตฟอร์มแลกเปลี่ยนคริปโตชั้นนำ

SIX Token จะถูกลิสต์บน Bitget แพลตฟอร์มแลกเปลี่ยนคริปโตชั้นนำ ในวันที่ 29 เมษายน 2567   SIX Network บริษัทผู้ให้บริการด้าน Blockchain Solutions ได้ประกาศการลิสต์ SIX token ($SIX) ใน

Read More

Centralized vs. Decentralized Fund: The Guideline for Beginner

Centralized vs. Decentralized Fund: The Guideline for Beginner

Definix-guide

Money has its own way to grow and to grow money is what many people don’t know how and have no idea what to invest in. In this blog, I will guide you with the know-how from gurus with useful basic understanding guidelines to make your money work

Table of Contents

Investment and Money Making

Essential factors for surviving lie under the Physiological Needs, Maslow’s Law Hierarchy of Needs. Water, warmth, food, and rest can be bought with money and means that money is the key to well being of lives.

The book The Rich Dad Fundamental: CASHFLOW Quadrant taught me about two categories of people:

●    E (Employees) – The most important part of being an employee is the security of a stable, great benefits, and high-paying job.

●    S (Self-employed) – Professions who work and take control of their income they only make money when they work example: dentist, musician, lawyer, consultants, etc.

●    B (Business Owner) – Business owners don’t own a job, but own a system or a product that makes money even when they are not working.

●    I (Investor) – Investor grows money by using passive income to form assets to acquire even more assets, growing their wealth through this velocity of money.

cashflow-quadrant

When I ask most people, “What is it that makes someone rich?”, the answer I usually get is, “They make a lot of money.” How much money you make does not make you rich. Rather, how much money you keep is what makes you rich.

What is Centralized Fund?

A fund is a pool of money set aside for a specific purpose. These pools are often invested and managed professionally. Some common types of funds include pension funds, insurance funds, foundations, and endowments.

 

Traditional asset management is concerned with the custody and investment of wealth. It is usually provided under governance or commercial banking system centers. Your money will be managed by certified consultants.

 

Centralization of money is a concept which we all understand but we do not have the capability to express it in easier terms. We will do that for your benefit. Whenever you are keeping your money at any bank places which include public funds or banks, you are prone to the centralization of money. This means that your money is not only yours. It will get passed into the hands of several users and they will decide the fate of your money. Although your money will always remain yours, it will be decided by the central forces whatever will be the fate of your money. Read more.

Are you now interested in investing in a fund?

What is a Decentralized Fund?

DeFi has given rise to several new banking systems that can help you to control your own assets. Just as it is meant to be, you can with the master of your own money and invest in whatever way you want.

 

Blockchain methodologies have helped to create a system of decentralized finance to gain greater control over one’s assets. In the long run as digitization will not end anytime soon and DeFi is still in a young phase, what really is a decentralized fund? 

 

Let’s start off with popular decentralized projects: Compound, Aave, Melon, Uniswap, PancakeSwap, MakerDAO, Polkadot, and the list goes on… In the DeFi sector, there are DEXs, NFTs Market, Game, Social, and Marketplace.

 

How do these protocols grow your wealth is how you manage it. DeFi projects for the investment I want to introduce is to invest in a fund. Next question: what is the concept of funding with cryptocurrencies?

Simple, it has the same concept as the government bond but runs on an open-source blockchain with protocols that do all the work for you. TokenSets has a variant choice for users to make investments.

Interesting scenes are Portfolios where the assets are stored into a pool and managed by smart contracts generating yielding percentages with a lower gas fee.

 

RoBo Sets are the fund managed by the Automated Market-Maker (AMM) or AI with calculated formula if one does not trust expertise to manage their money. And space where investors are free to open their own decentralized fund.

Guideline: Everything You Need To Know Before Investing

1.   Identify Your Financial Goal – To have money enough after retirement, for educational purposes, business owners, or being wealthy enough to not go back in the employed job.

2.   Educate Yourself – Knowing what are the risks, opportunities, fundamental understanding of what delivers the asset before investing.

3.   Invest Your Time Wisely – Start small, have patience, and watch as your wealth grows over time.

DeFi Investment Criteria:

●    It has to be an open platform, Non-custodial (Full control of the funds).

●    Advanced decentralization (protocol is making a significant effort to decentralize).

●    Accessible by anyone (no KYC/onboarding)

●    High transparency (open-source code/Smart Contract)

decentralized-fund-management

It took roughly two hours to execute all transactions. For some protocols, the setup literally took one click (e.g. Uniswap, DeFiZaps), whereas others were more complex (e.g. TokenSet). Nevertheless, that’s not more than 15 minutes per dApp. Also we never (!) had to provide any personal information like name, email, credit card, or identity card — all dApps connected simply to our MetaMask wallet. This fascinated us!

Bottomline

Investing in any form is risky. But with considerable possibilities to gain financially, comes great responsibility to take control of your asset management. Making money in the decentralized fund is not making you rich in just a flash of an eye, but it gives you the freedom of gaining control over your wealth, path to being successful, and financially intelligent.

Investment-fund

Thank you for your interest to invest with Definix!
Check out these channels for the latest update from SIX Network.

Stay tuned with us on these channels.

Napathsorn Unchit
Napathsorn Unchit

Passionate about financial world and is an inverstor too! Giving out news update and blog post every month.
Visit us at SIX Network for more.

Related Posts

SIX Token is Listing on Bitget Best Copy Trading Platform on April 29, 2024

SIX Token จะถูกลิสต์บน Bitget แพลตฟอร์มแลกเปลี่ยนคริปโตชั้นนำ

SIX Token จะถูกลิสต์บน Bitget แพลตฟอร์มแลกเปลี่ยนคริปโตชั้นนำ ในวันที่ 29 เมษายน 2567   SIX Network บริษัทผู้ให้บริการด้าน Blockchain Solutions ได้ประกาศการลิสต์ SIX token ($SIX) ใน

Read More

The New Era of Investment “LIQUIDITY”, “DEX”, “DeFi”

The New Era of Investment “LIQUIDITY”, “DEX”, “DeFi”

Dex and The Liquidity Pool

Table of Contents

The New Era of Investment “LIQUIDITY”, “DEX”, “DeFi”

The rise of blockchain technology has divided the exchanges into two types. And these exchanges have their own pros and cons in the financial economy. In order to understand the difference between a centralized and decentralized exchange hereby is the brief scope of what they really mean.

Why Do We Need a Refine for Financial System?

 

DeFi essentially represents a broad category of financial platforms built on public blockchains. It refines and reverses the traditional financial system completely. 

 

Combines protocols, tokens, and smart contracts to provide financial accessibility to individuals, (mostly) without the need for traditional banking channels. Some of the services currently offered in the DeFi space include exchange, payment processing, funds, and lending/borrowing.

 

Centralized exchanges (CEXs) are a type of cryptocurrency exchange that is operated by a company that owns it in a centralized manner. On the other hand, decentralized exchanges (DEXs) are executed on the blockchain (distributed ledger) technology. 

 

In this way, DEX does not hold customers’ funds, positions, or information and only routes the orders of trading to a matching layer.

 

What exactly is the part of CEX causing the dissatisfaction that led to the development of DEX? From the forum Centralized Exchange (CEX) – Old-Fashioned But Still Strong has its own contradiction in its narration.

The centralized exchange also forces traders to deposit funds in the exchange. This makes it easier for exchanges to manage funds in bulk, but the customer has no control over their funds. The customers may not be able to withdraw when they want to, or may not even receive their assets when the exchange is hacked.

They further say that transactions on DEXs are slower, but it comes with blockchain on the backend with a stronger security system, granting authoritativeness to the owners, and it is a peer-to-peer operation.

Key differences:

Centralized Exchange

– Depositing fiat money (debit/credit) or cryptocurrencies.

– Giving up control over that amount of currency.

– Do not own the private key to the money.

– Work on an order book and the transactions are done using the exchange’s own database.

– Faster and no delays.

– Comes at the price of independence: you have to trust the exchange with your money.

Decentralized Exchange

– Invest in cryptocurrencies.

– Owns the private key to the cryptocurrencies.

– Full control of your money.

– Executes on the blockchain with smart contracts.

– Manageable on every transaction and depositing amount.

– Comes at the price of dependence: non-custodian, flexibility, and traceability.

Borrowing and Swapping Currencies  (DEX)

 

Let’s talk about in real life situation when you needed to borrow some money from someone you know, first you have to know if he or she has the amount or the currency that you want with them or not.

 

If the lender does not have that amount of money or specific currency you need this situation equals to the lacking of liquidity.

 

In fact it is similar to the decentralized exchange where, this exchange is well known in the title “swap” hence the swap protocol on many DeFi platforms for example Uniswap, PancakeSwap, SushiSwap, etc.

 

The sub-section of DEX is swapping which originally occurred on the Ethereum chain. It allows users to seamlessly exchange or swap tokens in hosted pools and offers yield farming incentives to liquidity providers.

 

This is the advantage of practicing decentralized exchange in cryptocurrency where users do not have to worry about the liquidity of the currency in which they need for an exchange. The currencies are stored on the respective pool and blockchain of each platform ready to be used in the exchange activities.

 

Usually, users are attracted to be the liquidity provider with beneficial returns. By providing the cryptocurrencies to the pool users “sell” the currency they own and receive yield as a return. 

 

In the exchange under a decentralized network, users are able to swap the pairs of tokens supported in the specific chain (e.i. ERC-20: DAI for ETH). The key benefit of swapping in DeFi is that it is noncustodial. 

 

The assets can be customized in a smart contract with the rights of asset owners that can be exercised at any time and is only complete when the exchange conditions are agreed to and met by all parties. If any condition is not met, the entire transaction is canceled.

Yield farmers are incentivized for provisioning liquidity or providing other value-added services to a decentralized application’s ecosystem. Yield farmers are paid with pro-rate in native governance token, granting the user a higher Annual Percentage Yield (APY) on their provisioned liquidity.

Summary

 

DEX and the liquidity pool share their relationship on the DeFi system and cannot stand alone. It probably is the new way to get involve in the decentralized finance investment to harvest income passively with an interesting return rate.

 

Lastly, SIX Network is about to launch the newest, biggest project ever on the DeFi space wherein this hour no one hasn’t heard off. SIX wanted to emphasize and encourage everyone to trade with the advancement of knowledge material and with confidence. 

 

Our participation in recreating the DeFi platform for the decentralized exchange and investing fund is the mission to help investors whether beginning or expert level to trade on our platform without the hassles with the help of experts.

Come back for more promising announcements and updates.

Stay tuned with us on these channels.

Napathsorn Unchit
Napathsorn Unchit

Passionate about financial world and is an inverstor too! Giving out news update and blog post every month.
Visit us at SIX Network for more.

Related Posts

SIX Token is Listing on Bitget Best Copy Trading Platform on April 29, 2024

SIX Token จะถูกลิสต์บน Bitget แพลตฟอร์มแลกเปลี่ยนคริปโตชั้นนำ

SIX Token จะถูกลิสต์บน Bitget แพลตฟอร์มแลกเปลี่ยนคริปโตชั้นนำ ในวันที่ 29 เมษายน 2567   SIX Network บริษัทผู้ให้บริการด้าน Blockchain Solutions ได้ประกาศการลิสต์ SIX token ($SIX) ใน

Read More