2 Innovative Cryptos in DeFi and Newcomer; Terra (LUNA), Avalanche (AVAX) and Sanzooz Finance (SZFT)
Update: May 25, 2022 10:28 a.m. STI
New Delhi [India] May 25 (ANI/ATK): Decentralized Finance (DeFi) is an evolving technology concept that is based on secure distributed ledgers like those used by cryptocurrencies and plans to remove the control that banks and other third parties have over the money and financial services.
It’s a growing concept that’s becoming increasingly popular as projects in its space increase. Terra (LUNA) and Avalanche (AVAX) are two cryptos that have made a name for themselves in DeFi. However, new projects are coming up ready for success and one of these crypto is Sanzooz Finance (SZFT).
Introducing Sanzooz Finance (SZFT)
Sanzooz Finance (SZFT) is an Ethereum-based protocol for decentralized asset issuance. Artificial assets are a type of assets that are intangible and have no intrinsic value in themselves like currencies, commodities, etc. So they are called derivatives.
The need for artificial assets arose when it was necessary to find a way to allow the exchange of assets without the need to physically move them and to facilitate the pre-sale of goods that have not been produced or that do not are not yet available for sale. An artificial asset is created when two or more parties agree on specific terms and create a contract based on a real asset.
For example; if Person A owns a game console worth $300 and for some reason is expected to sell it in 4 months. There are now two terms for Person A selling their console which include;
a) Let the price be 300 USD
b) That the sale takes place in 4 months.
Now, if Person B sees such a contract and decides to accept its terms, Person A and Person B are bound by a contract which is a derivative asset. Naturally, the contract does not have particular value, because it represents the value of the real asset (the game console) for which it was created, this value is transferred to the contract and makes it valuable by association.
So if there’s someone else, let’s say person C wants to buy B’s contract and right to the console when the contract expires, then person B can sell to person C for a profit. Basically, anyone with the contract when it expires will buy the game console.
Now, these artificial assets will be backed by the Sanzooz Finance (SZFT) token which will allow the creation of artificial assets when locked into a contract. This bundled collateral model allows members to perform asset conversions via smart contracts directly and without the need for counterparties.
Holders of SZFT tokens will be rewarded on a new platform called “Sanzooz Exchange” by receiving a prorated share of the fees generated by the activity based on their contribution to the network. Additionally, as a decentralized platform, Sanzooz Finance’s governance system will be decentralized and managed by several sub-DAOs under the main Sanzooz DAO.
Avalanche (AVAX) is an open, programmable smart contract platform for decentralized applications (DApps). It is the fastest smart contract network in terms of completion time. It has a very low cost to deploy smart contracts compared to Ethereum.
The Avalanche Bridge feature creates interoperability by enabling seamless transfers of Ethereum and Avalanche Asset Network blockchain networks. AVAX is the native currency of the Avalanche Network and can be used to pay fees and secure the network through staking. According to the website, AVAX has a market cap of over $16 billion.
Terra (LUNA) is a public blockchain protocol that deploys a suite of decentralized algorithmic stablecoins that supports a thriving network that brings DeFi to the people.
It is an open-source stablecoin network controlled by its stakeholders. On CoinMarketCap, Terra (LUNA) is ranked 8th with a market cap of over $28 billion.
For more information on Sanzooz Finance (SZFT)
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