TL;DR
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‘DeFi abstraction layers’ allow anyone to contribute crypto, have the algorithm trade/lend it out, and return higher yields than basic staking (that’s the idea at least).
Full Story
No one wants a quarter inch drill bit — they want a quarter inch hole.
That’s marketing-speak for “most, if not all, purchases are the result of outcome-based desires.”
Putting that into a crypto context:
Most people aren’t learning how to code complex trading algorithms for sh*ts and giggles — what they really want is to turn a profit.
This is usually a pretty defendable business — cause very few people are willing to go through the grueling dual process of learning how to code and trade effectively.
This is why ‘DeFi abstraction layers,’ like Veda (which has just partnered with EtherFi) continue to grab our attention.
The basic gist of the project (and projects like them), are this:
Veda builds closed, proprietary trading algorithms that are designed to earn yields higher than your basic “stake to earn 5% per year” offer.
And we know, we know:
‘Closed systems’ and ‘proprietary tech’ are dirty terms in the open and decentralized world of crypto — but there’s a reason here…
These algorithms need to be closed in order to function properly — cause if they were commonplace, the strategies behind them would lose their edge.
What these ‘DeFi abstraction layers’ do is allow anyone/everyone to contribute their crypto, have the algorithm lend/trade their crypto, and earn higher yields as a result (that’s the idea at least).
Which speaks to us, because:
We don’t want a quarter inch drill bit to learn how to code trading algorithms — we just want a quarter inch hole higher yields.
