What is MetaFi? DeFi background and possibility of merging metaverse and DeFi.

Metaverse and DeFi are the two biggest technology trends, which are coming together with the concept of MetaFi. 

Since 2018, the disapproved financial (deaf) about Crypto City is clear for various reasons. This concept is based on the principles of allowing innovation, the possibility of entry and the principles of the rule of money. At the same time, another technological innovation metapap has emerged.

At present, the convergence of these two technologies in the form of motorists provoked many discussions in the world of crypto. Dafi has successfully attracted the attention of encryption investors, although relatively low cost rate. Given that only 5% of the total crypto assets serve as collateral in DeFi, it is important to know how it will expand in the future. In the discussion below, we will try to find out about the MetaFi DeFi connection and how it works, along with some of its possible uses.

DeFi background

Before you try to learn more about MetaFi DeFi for metaverse, it is important to understand the background to its development. DeFi protocols and applications focus on developing a system that facilitates better transparency and efficiency with openness to innovation. However, DeFi adoption was relatively slow.

DeFi's annual monthly sales will reach $ 4.6 billion in 2021, which is less than 5% of JP Morgan's revenue in 2021. In addition, DeFi's coverage is limited to core applications such as loans and borrowings. However, DeFi solutions can unlock the metaverse value through MetaFi tools. What is the chance of success of the combination between metavers and DeFi? Here you need to understand the background of the metaversion and how it fits into DeFi.

Is MetaFi a possible statement?

Just because metaverse and DeFi are two emerging technology trends with potential, you can't mix them. Many people looking for information about the possibilities of the MetaFi protocol in the future may also think about the possibilities of such ideas. Today, you can find many social media and gaming platforms with control over billions of dollars.

The total digital economy has a current value of almost $ 11.5 billion. On the other hand, you also have an emerging subset of the digital economy in the form of the digital creators' economy. There are currently more than 50 million creators in the digital space. However, they have to deal with the limitations of digital web 2.0 platforms and there are economic losses in the cost of controlling their creations.

On the other hand, the world of Web 3.0 is completely different. Here you will find DeFi, decentralized applications, crypto and NFT in a paradigm that revolves around users and their autonomy. In the long run, the adoption of web 3.0 metaverse technologies and related user empowerment principles can be expected. Therefore, it is reasonable to think that DeFi applications for metaverse would be a really good design.

MetaFi concepts

The basic definition of MetaFi suggests that it includes protocols, services and products that allow complex financial interactions between NFTs and substitutable tokens as their origin. For example, you can use part of your NFT as a guarantee for DeFi rental platforms. The key advantages of MetaFi DeFi are two basic principles that indicate that it is compatible and unstoppable. Developers from different parts of the world can actively participate in the new ecosystem while competing for higher returns.

It is also important to note the MetaFi NFT connection as it helps to apply DeFi principles to the metaverse. How? This essentially facilitates the combination of unmistakable and substitutable tokens within new approaches to community management. The combination of several key cryptographic functions provides the basis for a well-developed parallel economy.