Why we love DeFi

The full article was originally published by ShimmerSea on Medium. Read the full article here.

Lets talk about Decentralized Finance (DeFi) and why we love it! Five core values about DeFi, that we at TangleSea strongly believe in and will not compromise on.


We love DeFi because it is the most ambitious attempt to rethink how our financial world should work! DeFi is building a trustless infrastructure on code that does not need to rely on trust(un)worthy centralised institutions!

Therefore, DeFi dApps in their purest form do not have any backend. Instead code is programmed in powerful smart contracts that are open source! The entire value is on chain and can not be corrupted by any individual, entity or dApp.

With the launch of smart contracts on Shimmer, DeFi will be enabled for the first time in the IOTA ecosystem!


We love DeFi because it sets a new standard for transparency in the financial world! DeFi dApps are built on powerful smart contracts that are public and open source instead of using a centralised database hidden away. However, not just the code is public!

All interactions are transparent for everyone. You can check the activity for every transaction, smart contract or wallet. This allows you, for example, to track and learn from crypto whales. You can see which tokens or NFTs crypto whales are buying, holding and selling, and which smart contracts they are using.

Also, it allows the larger community to follow up on bad actors. Hackers and scammers can not hide, erase or in any other way corrupt the account of their actions. In some cases, this allows prosecutors to catch them even years later.

With all this transparency in DeFi, anonymity is a key element to protect good participants! Therefore, DID solutions like Tangle_Labs is developing could play a key role going forward to assure the privacy of individuals while being compliant with regulations.


We love DeFi because of its permissionless nature! In traditional finance, developers face insurmountable hurdles when building a financial service or app with global reach. DeFi, on the other hand, allows you to build without boundaries!

However, smart contracts are not only open source, but also inter-operable! Anyone can use existing smart contracts and integrate them into their dApp. For example, you do not need to sign a service contract with @ShimmerSeaDEX to open a liquidity pool on our DEX or to integrate an existing pool into your dApp.

With the launch of smart contracts on Shimmer, this powerful technology will be unleashed for the first time in the IOTA ecosystem, exhilarating its development!


We love DeFi because it empowers people globally! Around 1.7 billion adults worldwide do not have access to a bank account and thus no access to financial services! This can severely limit their opportunities.

Since DeFi is permissionless, the door is not closed to anyone who wants to use the services offered in dApps. This lowers the barrier to entry significantly! In DeFi advanced services such as lending, investing, staking, trading, etc. are available to everyone with a phone.

But even if you are able to take full advantage of established financial services, recent events have shown that you can be deprived of access to your own assets. In DeFi, you are always in control! Your token and NFT stay in control of your wallet. Nobody can deny you access!


We love DeFi because it is a paradigm shift towards decentralisation! DeFi decentralises infrastructure, profits, decisions, trust and control. In a world where tech enables the few at the top to wield previously unthinkable power, decentralisation is our best hedge.

In the example of a DEX, all core elements are decentralised. If you trade one token for another, the trade is validated by the decentral network, the liquidity for the trade is provided decentrally and the fees get distributed decentrally to the liquidity providers again.

Decentralisation in DeFi , however, does not stop with the functionality of the dApp. The vision is also carried through to the governance of DeFi dApps. It is not 1 team holding all control over a dApp but ideally the power is distributed to the community through a DAO.

Thus, in DeFi every contribution counts! Every participant of @ShimmerSeaDEX will be part of this revolution and bring value to the community!

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The full article was originally published by on Medium, where people are continuing the conversation by highlighting and responding to this story.

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