Decentralized finance applications have seen massive growth in the last year, currently storing over 50x times more value than at the start of 2020. The DeFi journey may just be beginning, however, as Radix has partnered with several of the most prominent names in crypto to launch the Goodfi Alliance, a DeFi growth initiative. In collaboration with AAVE, Chainlink, Messari Capital, and mStable, the dynamic group will be working to get 100 million people worldwide to put at least $1 into DeFi applications within the next four years.
Power to the People – 100 Million of Them
Goodfi is a non-profit alliance created and launched by Radix, a layer one blockchain protocol tailored specifically for DeFi applications. Through this initiative, Goodfi hopes to further education, research, and usage in a field that has the opportunity to empower millions directly. Decentralized finance allows for permissionless, borderless, and simple access to financial markets, something previously inaccessible to vast swathes of society. DeFi goes further, enabling the opportunity to lend or receive a loan, deposit assets to gain interest, take out or supply insurance, and stake digital assets to generate yield.
All of these possibilities are accessible with a smartphone and internet access, with both becoming cheaper and more accessible, especially in areas that are traditionally considered the most financially excluded. For many, DeFi will be their first access to financial services, as billions of people remain unbanked due to misaligned corporate incentives. This will provide them with vital services that will give them the opportunity to preserve their wealth against inflation and generate passive income through financial transactions.
How Goodfi Will Accomplish Its Goals
The teams behind the Goodfi Alliance understand that many hurdles currently prevent average users from accessing DeFi services, but they plan to tackle this problem head-on. Goodfi will focus on education, research, and awareness in order to promote DeFi to a wider user base. Goodfi and its members understand that users need assistance when buying their first digital assets and using dApps, so they will produce educational content that is agnostic to any particular chain, explaining the DeFi process as a whole. They will also create additional material so users can better understand the risks and opportunities that DeFi presents, as well as how to navigate the ecosystem more generally.
Many people reading this will have years of experience in the cryptocurrency space, putting them lightyears ahead of those who have never even heard the term ‘decentralized finance’ before. Better research will also better DeFine, as well as challenge, the assumptions currently surrounding the DeFi economy.
The final aspect of Goodfi’s data dissemination strategy is promoting widespread awareness. Retail investors involved in traditional markets were recently rocked by a potential conspiracy involving wealthy hedge funds and centralized market operators, instantly making the case for DeFi. More people need to understand that there is a non-manipulatable alternative that is readily accessible in DeFi, allowing for equal opportunities regardless of status or wealth. Goodfi plans to promote the industry and attract a broader user base from all spheres and sectors.
Room to Grow
This is just the beginning for Goodfi, with more companies and organizations poised to join in as they realize their shared objectives in the space. With plentiful resources contributed in the form of time and money, and the focus on active efforts from all participating and future companies, Goodfi has a lot of gas in its engine. They plan to grow, which will involve gaining a better understanding of these applications’ target audiences and highlighting the importance of learning about and using DeFi applications.
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