Steemit is DeFi
Steemit is probably going to end up being the key to DeFi, if Steemit ends up being TRON Linked to Poloni DEX and JustSwap in the wallet, that is something we have never seen, as Steemit itself is the first mass adopted Social Media Crypto platform.
Then TRON is ETH, so it is combining Graphene based Social Media with an ETH based platform. With Tokens and an exchange between the 2, but in the same place. With STEEM and TRX earnings in the wallet. Even if TRON themselves don't add the exchange, someone will make one, they will have TRC10/20 Tokens sitting in their wallet.
This is something pretty much anyone can earn good money from.
Steemit Wallet now has TRON Link, and this combines multiple technology features that were expensive and less UX Friendly than Steemit and TRON Link. And these expensive technologies are both combined, and Free.
TRC20 is completely free.
TRC10 is 1024 TRX
These will be found in Steemit Wallet, so this is not just a big step for TRON, but this is History happening. There may even be purchasable Bots for your Tokens as a package when you create them, or to be made for you. It could compete with Steem-Engine.
Steemit now has a TRON Link Wallet in the wallets, nothing like that has ever happened before.
Where is DeFi Headed?
Certain aspects of DeFi will last, I think the DEX is here to stay, maybe more Token to Token trading pairs would truly Decentralize Finance, so if my Token in worth $0.02 and yours is $0.00001 I can buy a bunch of your with mine on the market, we are now both invested in each other and your Coins last trade might be equal to $0.01 now.
This is how Bitshares Assets and CCEX worked.
Then I think some form of Crypto loan or Crypto Stocks would work, where people hold a certificate that is a Token, but a capped and fully issued Token, and that Token goes on the market for Altcoin Projects. This would be similar to an ICO, but there would be a Smart Contract not simply issuing an Asset for a particular value, the Stock would be like a Dividend that paid out from the Company that made the stock, and you basically own a portion of that company's earnings.
It would be best for exchanges, or projects that include games with fees and in app purchases, but simple projects like a TRC10 Token or other simple TRC20 that does 1 simple task on the front end, these could get investment for building dApp #2 or a new Blockchain or whatever by promising fees.
The best way to view this would be the same as if you were to own a % of the fees from a Crypto exchange
That seems more solid than the DeFi loans, and you could sell your Stock. So it is just like a Token, it itself could be a Token. And this might even be how Binance or Poloniex are modeled with small differences. But this would expand past exchanges, and would replace the ICO where people own Tokens they hope they can sell more for later, and they aren't inflating because it is not a PoS mining coin, it is a Dividend.
And then exchanges where you can make Tokens, and after you make it, it is listed.
And exchanges with Market Bots, and Tokens Distributed by Bots.
I think these will be what we get out of DeFi.
Loop Mining, it could also have a Future.
Right now there is a project with like RICH and the other Token is called SMART. But you Buy 1, and use it to mine the other, but the first 1 is only part released so now you have the option of selling what you just mined, or now staking and buying up everyone's then staking to mine the most in round 2.
SUN is being done in this model, there was Sowing Sun, and it is going on from there.
But, if you had a Dividend in there, it could last.
So, I release 10% of Dividend Stocks (Token A) for a new exchange in Smart Contract Token form. Now, that Token can be send and frozen in Token B's Contract to mine Token B.
Token B is not easy to mine, maybe even with higher rewards as more is staked, but diminishing returns. So it is like not sharpening a blade when chopping trees, the more you go, the harder it gets as it dulls; but this is more like 100 axes, added hour by hour, with there being a number of axes getting good returns and each getting less and less as the new ones are added. So as an investor puts more of their Token A into mining they get more back, but with a shrinking upward strength of hash per Token A added. Investors still get their dividend, if they own 10% of the 10% of Token A released, they continue to get 1% of exchange fees as they mine.
And 100 people could be sharing these Token As, but each Token A would be the same strength for everyone who stakes 1. But if someone stakes 2, they are 1.5x as stake weighted, then 3 staked gives them a 1.75 stake weight, etc. This gives scarcity, and buy incentive, and deters 51% takeover. Token A would be your choice to sell whatever % you want, but if someone takes 51% of Token B, it ruins Token B, and C. You should want no Token to have a 50% ownership by any individual unless it is Dead, or a Charity/Bounty Coin. It used to be if someone got 51% of a PoW or PoS Alt they wrote it an Obituary.
But people want to Buy your Token A from you both so
They can Mine Token B
They can get Dividends
Now, you can choose to sell more of your 90% of Token A, but you would not use it to mine Token B. The owner would want to let the investors mine Token B. You could also have Token B or C mine Token A; but then you do a B or C ICO type offering after the B mining, or you don't earn anymore yourself except your % fees as the creator, so Selling A and the rest being Investors would be best.
Now, having sold your 90% or just 50% of the total, maybe you have 30% left, whatever it is. You can now go start a new project.
And you can make it where Token B mines Token C, which could be anything. An upcoming game coin, a Dividend Stock Coin, Premine PoS on a new Blockchain, whatever Token C is, anyone holding Token B can get it.
And Token B could release 100 per year, over 20 years, so now your company has people there for 20 years earning.
And this could be the base for so much more for a company, but that is the kind of Loop Mining that could really be useful.
STEEM Backed Dollars
This shows a good example in the DeFi Ecosystem of a way you can make big returns.
This is the STEEM Backed Dollars market. SBD are pegged at $1 each and when SBD are $4.00 like they are now, or $12.00 as they have been, the Blockchain puts out more, it inflates them to lower the price. But if more SBD buyers exist than the system can push out on the market, or everyone holds their SBD, and people are willing to pay $4.00 for a $1.00 uncapped inflationary currency, it will go up.
And if you bought SBD at $1.00 or less, to have made 4x your money back or more, in the past month or so.
And some people will buy SBD for $4.00 and end up having $1.00 coins. So some people will lose money, but that is the nature of the market, it is growth based, but you are not being paid out by the next 5 people putting money in, you are holding a peice of something that you are buying and selling when you choose.
So there are ways to make large returns in DeFi.
I originally wrote all of this on Bitcointalk while discussing DeFi with others there