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The decentralized finance (DeFi) sector of the cryptocurrency industry has been around for years, but the crypto world needed to reach a certain level of maturity in order to become attracted to it in the way it is now. Plus, DeFi had issues of its own to settle, such as figuring out liquidity on decentralized exchanges.
Only a few short years ago, DEXes barely existed, and the ones that were around struggled greatly. Due to low liquidity, they couldn’t attract users, and without users, they couldn’t raise liquidity. However, after AMMs were invented, DEXes finally became operational, and users were no longer limited to only those DeFi projects that are listed on centralized exchanges.
Following that, DeFi prospered, but there are still flaws to resolve, and potentially inspire even greater interest in the sector, potentially even driving it to a greater level of adoption. Beta Finance is one project that is trying to do this, and it has found its own unique way of doing it.
What Problems Does Beta Finance (BETA) Solve?
Beta Finance aims to solve the issues of volatility and scalability, while simultaneously delivering a new feature that was missing from DeFi up to this point.
Delivers a scalable and accessible money market
The first thing to note is that the project is acting as a permissionless money market on Ethereum, where it offers borrowing, lending, and shorting services. Its long-term goal is to offset crypto volatility and bring market stability, which may result in a greater level of DeFi adoption, and maybe even pushes the DeFi sector to the mainstream.
To reach the mainstream, Beta believes that users need to be able to access a scalable and accessible money market, where tokens can be listed automatically and permissionlessly, and where they can be shorted.
Manages trades in a decentralized way
Beta Finance also has its own way of managing trades. Where centralized exchanges use order books to match transactions and execute shorts, Beta routs trades through DEXes that use AMMs. That way, it always ensures liquidity, which is important for short selling. That is what makes it highly efficient, and what
Brings shorting to DeFi
We mentioned shorting several times already, but it is worth noting that it is very important in the context of Beta Finance. The project sees short-selling as a critical financial tool that was surprisingly absent from the DeFi ecosystem. In Beta Finance’s eyes, short-selling facilitates market stability and efficiency, which is why it made sure to make it not only present through its own project, but also convenient and easy to access and use with its 1-Click Short tool. With a single click of the button, users can select the DEX to swap through and stake the newly-swapped collateral with the principal in the short position.
Benefits of Beta Finance (BETA)
By engaging with Beta Finance, you, as a user, gain access to several great benefits and services that the project offers, including:
Lending is a great way to earn passive income in the DeFi sector, and it is the most popular activity out there right now. 2 of the top 3 largest protocols based on TVL are lending protocols, which only confirms that point. It is also easy to understand why that is. Lending lets users lock up their coins into lending pools and actually help other users who require help by granting them loans. Plus, it ensures that the lender earns passive income through interest. And, finally, users can withdraw their money at any time, so they are not at risk of losing it and having to wait for the borrower to pay them back.
Borrowing is just as helpful as lending, but from a different angle. It allows users to get the money they might desperately need, without actually spending everything they have at once. Plus, it is much easier to get a crypto loan than to get one from a bank, and as long as you can provide collateral, that is really all that matters in a decentralized environment.
Finally, there is shorting, which, as mentioned, turned out to be surprisingly absent from the DeFi sector. However, the project sees it as a crucial component, which is why it made sure to enable it, make it as simple to use as possible, and make the process extremely efficient. Short-sellers are able to use collateral to initiate short positions, which gets swapped through a DEX of the user’s choice, and then gets staked.
How Does Beta Finance (BETA) Work?
While Beta Finance has an entire whitepaper that goes into great detail about how the platform and all of its aspects work, the important thing to remember is that it is a permissionless money market on Ethereum that allows users to engage in lending, borrowing, and shorting crypto assets. Users can access a scalable and accessible money market, where tokens are listed automatically and permissionlessly.
Shorting is particularly important to Beta Finance, as it identified the lack of it as a significant volatility characteristic of the crypto industry. It also believes that this state of things harms adoption, which is why it made sure that it will be represented through its own project.
Beta Finance’s platform can be used for lending, borrowing, and short selling. While lending and borrowing work in a way that is rather typical and usual for the DeFi sector, shorting is quite a unique process that allows users to use collateral to initiate short positions, and have that collateral go through a DEX of their choosing, and then gets staked in order for short-selling to take place.
The platform created a simple but effective 1-Click Short tool that can make it all happen, as the name suggests, in one click.
How to Buy Beta Finance (BETA)
Currently, Beta Finance (BETA) is available for purchase on the following exchanges.
Binance – Best for Australia, Canada, Singapore, UK and most of the world. USA residents are prohibited from buying Beta Finance (BETA). Use Discount Code: EE59L0QP for 10% cashback off all trading fees.
WazirX – This exchange is part of the Binance Group, which ensures a high standard of quality. It is the best exchange for residents of India.
Beta Finance (BETA) — A permissionless money market
Beta Finance is a project whose overall goal is to boost crypto adoption. Meanwhile, it believes that this can be done by eliminating volatility and bringing market stability. That, in turn, requires a shorting tool, according to the project’s views, and that is why it opted to focus so strongly on the shorting aspect of trading. So, if you wish to engage with short-selling in a decentralized way and help bring stability to crypto, and eventually its adoption, then Beta Finance is the project to support.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.
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