DeFi protocols have gotten a lot of interest from users, but they don’t have a mechanism that keeps them coming back to interact with them. Since its creation, EPNS has been developing this mechanism, and DeFi now includes decentralized push alerts.
Here’s a quick look at why the DeFi market needs a communication layer and how EPNS can help users and protocols communicate in the DeFi area.
What is DeFi?
Decentralized finance (abbreviated as DeFi) is a wide word that refers to a number of financial apps that employ bitcoin or blockchain technology and are aimed at disrupting financial middlemen.
Bitcoin’s blockchain technology, which is the basis for DeFi, allows several entities to keep a copy of a history of transactions, allowing it to be managed by multiple entities rather than a single, central source. This is critical because centralised systems and human gatekeepers may slow down and complicate transactions, while also allowing users to have less direct control over their money. DeFi is unique in that it extends the application of blockchain technology beyond simple asset transfer to more complicated financial use cases. DeFi solutions, which make use of distributed ledger technology, or DLT, can provide many of the same benefits as traditional financial services, but they are managed by a huge number of users who must adhere to regulations imposed by smart contracts. DeFi systems also typically provide better flexibility in terms of the capacity of users to store and govern their own assets, as well as greater security. Aside from that, decentralized exchanges, or DEXs, further decentralize digital asset trade as compared to trading on centralized digital asset platforms, which is beneficial to both parties.
Need and Importance of EPNS
Users of DeFi must keep up with a lot of things because they are part of one of the world’s most rapidly developing industries. To mention a few, there are the continuously changing token prices, continually upgrading protocols, new product launches, and investment opportunities.
Unfortunately, since DeFi fails to communicate reliably, users must manually look for this information and keep themselves updated. This is a time-consuming task, especially since most of us have been accustomed to receiving this information via push alerts in the Web2 space. The following are some examples of critical communication that must take place:
- Near Liquidation Alert
- Claim Staking Rewards
- About to expire Staking Rewards
- Alerts on prices
- Slippage in the stablecoin peg
- Low gas prices
- Changes to index selection/weighting
- Migration of tokens and contracts
- Updates on government and token launches
- Money market collateral types get a makeover
- Incentives for liquidity mining
- Alerts on yield farming APY
- Ending of Escrow Periods / Unlocking of Tokens
Liquidations of loans
Borrowers on DeFi loan platforms risk having their collateral liquidated if the price of the collateralized asset falls below a specific threshold. Due to the lack of a dependable communication channel, borrowers must manually keep track of price variations, and liquidation occurs more frequently than not. As a result of including EPNS into their protocol, lending protocols can quickly notify users when their collateral is liquidated. They can also be notified when their loan is approaching the conclusion of its term.
Updates on Governance
Another area where EPNS can be extremely useful is governance. DeFi protocols demand all community members engage in the governance process to maintain adequate decentralization. However, most users will be unaware of this because they are unaware of the newly developed governance proposals. DeFi protocols would notify their users if new governance ideas are created and voting begins by implementing EPNS. Members of the community can easily find out the results and when new updates will be adopted. Stakeholders can also be notified when awards are available to claim or are about to expire.
Launches and Pricing of Tokens
With the number of traders and investors in DeFi increasing exponentially, there is a clear need for a system that keeps them informed about the numerous opportunities. Integrating EPNS into decentralized exchanges and trading platforms could be a boon in this area. Investors and traders can receive notifications from EPNS anytime new tokens are launched, or asset prices change. Arbitrageurs in DeFi can also gain significantly from EPNS, as they will be notified if there are pricing variations in the market from which they might profit. Consider the case of stablecoin peg slippage.
Launches and Updates on the Farm
In the last few years, yield farming has been prevalent in DeFi and trading and investing. EPNS integration can have a huge impact here as well. Investors can be contacted as soon as possible whenever a new farming opportunity arises. Additionally, removing escrow, APY alerts, and new mining incentives can all help users have a better farming experience.
Updates on Layer 2
Of course, L2 protocols will also benefit from a DeFi-optimized communication layer. The protocols can inform users about governance changes, low-cost gas periods, chain deployments, and contract migrations.
Updates in general
Finally, NFT marketplaces, Metaverse projects, and GameFi protocols might benefit from the technology. EPNS Gaming projects could send out notifications as a new battle begins or when users finish missions successfully. This guarantees that user participation and engagement are maintained at all times and that user experiences are improved. To summarise, EPNS provides the DeFi industry with a communication layer that lowers friction and encourages user participation.
Keeping Decentralization Alive
In the DeFi world, users are at the center of everything. In reality, DeFi’s fundamental objective is to return power to users. While this sounds amazing, genuine decentralization has been challenging to accomplish with DeFi. Because there isn’t a communications layer, this is the case. Users are still in the dark about various developments in the DeFi space until they explicitly check. They miss out on different investment and governance options. As a result, they are lowering user participation and jeopardizing decentralization.
EPNS, on the other hand, ensures that DeFi’s essential principles of decentralization are kept by keeping consumers informed at all times. As a result, the sector gains confidence and transparency, and the customer experience improves dramatically.