I am once again here my dear readers, in this opportunity I come to share with you general information about DeFi projects, which is very important to understand how these projects work in general, in order to make the best possible decision if you want to invest in a type of project like DeFi, I will talk about points in general of this type of projects.
Screenshot taken at: PixaBay
Usually all DeFi projects work in the same way, since it is a project where we stake our resources in order to obtain interest in the token of the project, which is represented as our profits for the investment made in the project, as any investment always has a little risk in the investments made, but in turn can generate large profits, and are formed as follows.
Being this the place where the liquidity of the project is injected, it is there where the resources that give value to the token that is generated in the project are, so the more resources are this pool, the more value the existing tokens will have, and the more tokens there are in the market the lower their value, so you must keep in mind the amount of token that a project issues.
This is the process where we decide whether to invest or not, it is a process that is used to freeze some resources for a while, and with this we can generate interest to obtain a percentage % of the tokens that are created in the project, which are granted in proportion to your investment, the more you invest the more you generate.
But you should keep in mind that most of these investments are made in currencies that are victims of the variation in their price, and if you invest$ 1000 in one of these currencies and lose value in the process, your capital may decrease.
As I mentioned in the previous point, the generation of interest is the amount of token that we are obtaining on a daily basis, depending on the % of interest offered by the DeFi platform in which we are participating, and with it obtain our profits.
After these points in general, I invite you to investigate a DeFi project, which is from our friend of the Steemit platform @xpilar, project named WoxDefi, in which you can participate if you like, it is also a project linked to the Steemit platform, since its developers are renowned in the Steemit platform, here I share the link of the project with you: https://woxdefi.app/.