yes bank crisis and defi

Yes bank crisis proves defi revolution is near

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Once India’s fourth largest private bank is now in verge of bankruptcy. Yes bank share tanked by 80% today morning as RBI put restrictions on bank.

Bank depositors can’t withdraw more than 50k INR for next one month. Only people with some emergency need can withdraw around 5 lakh rs.

How one feels when one can’t withdraw it’s own funds.

Yes bank misreported its NPA just like the earlier PMC scam.

RBI as a regulatory body has failed again and again. Even in US wells fargo one of the major bank found to be guilty of mal practices.

Defi is solution

Rather than trusting your money on bank , now you can be your own bank with the help of Decentralised Finance. There is fast research and progress happening in Defi sector.

More than 1 billion US dollars is already locked in Ethereum based Defi protocols.

The great thing about defi is no third party control your funds and can’t put any restrictions on your money.

The only thing you need to be very careful is that you can’t lose private key( similar to password in normal banking). If you lose or forget your private key , you lose your funds forever. There is some reserach happening how to mitigate such risks by developing technologies for social recovery.

The defi technology is in nascent stage so it’s not foolproof and have some risks of hacks due to bug in not properly audited smart contracts. But with time these will all go away as defi industry is focussing more and more on security.

So i will advise you to mitigate your risk by putting atleast 30% of your savings in defi and increase it to 80-90% as technology matures.

Check the list of hottest defi projects here.

Tell me what do you think will constant failing of centralised banks will pave the path for wide spread defi adoption, comment below.

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