TL; DR
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“DeFi abstraction layers” allow anyone to contribute crypto, let the algorithm trade/lend it, and yield higher returns than basic staking (at least that’s the idea).
Full story
No one wants a quarter-inch drill bit; they want a quarter inch hole.
That’s marketing speak, because “most, if not all, purchases are the result of results-oriented desires.”
If we put that in a crypto context:
Most people don’t learn how to code complex trading algorithms for sh*ts and giggles – which they do Real want is to make a profit.
This is usually a fairly defensible case, as very few people are willing to go through the grueling double process of learning to code And act effectively.
This is why “DeFi abstraction layers” like Veda (which just partnered with EtherFi) continue to capture our attention.
The basic idea of the project (and similar projects) is as follows:
Veda builds closed-loop, proprietary trading algorithms designed to deliver returns that exceed your basic “stake to earn 5% per year” offer.
And we know, we know:
‘Closed systems’ and ‘proprietary technology’ are dirty terms in the open and decentralized world of crypto – but there’s a reason for that…
These algorithms must be closed to function properly – because if they were mundane, the strategies behind them would lose their edge.
What these ‘DeFi abstraction layers’ do is allow anyone/anyone to contribute their crypto, let the algorithm lend/trade their crypto, and thereby earn higher returns (at least that’s the idea).
What appeals to us because:
We don’t want a quarter-inch drill to learn how to code trading algorithms; we just want a quarter inch gap higher yields.