In recent years, the traditional banking industry is being threatened by disruptive technologies like decentralized finance. Projects like Clever DeFi are at the forefront of the charge to revolutionize the banking industry. With the high number of blockchain and decentralized finance projects, traditional banking industry is left with only one choice. It either evolves or be left behind in this technologically driven decentralized economy.
The flaws of the traditional banking industry are becoming more obvious for all to see. Although the decentralized finance industry needs to mature, projects like Clever DeFi are offering robust financial services.
Clever DeFi is the world’s first fully compound-interest-paying protocol. It is a decentralized finance protocol that guarantees set interest payouts to all native token (CLVA) holders. All the interest rates, dates, and cycles are already pre-coded into the smart contract. The Clever decentralized finance protocol aims to solve several of the flaws of the current banking system.
Clever functions like an autonomous savings bank where users automatically receive interest on the number of Clever tokens (CLVA) they hold on their respective wallets. The Clever protocol guarantees investors true ownership of their wealth. These CLVA tokens are securely held in the Ethereun network and can only be accessed using the appropriate private keys.
Every two weeks (14 days), CLVA token holders receive interest in the form of tokens. The interest can go as high as 11%, and the interesting part is that the payouts are hardcoded into smart contracts. This ensures that users will automatically receive interest provided they have CLVA tokens in their respective wallets. If the Clever DeFi protocol aims to improve the traditional banking system, what are the flaws of the banking industry?
At the tip of the spear of the problems facing the banking industry is the issue of centralization. If you have to control my money, then I need to trust you to do that job efficiently. However, that hasn’t been the case with the traditional banking industry. Users find it very difficult to trust banks to handle their money efficiently.
Over the years, lots of scandals have rocked the banking industry, and it hasn’t helped the reputations of this industry. Over the years, the government has committed a huge amount of taxpayers’ money to rescue banks and other financial institutions. We have seen how they have normalized bailouts, and industry experts believe bail-ins will be the next big solution. If an institution cannot handle its business, how can users trust them with their money?
Another big challenge facing the global traditional banking system is its inability to compete favorably with DeFi. When we compare the interests offered by these banks to the interest rates offered by yield farming protocols, the gap is too wide and in favor of yield farming protocols. The Clever DeFi protocol offers more than 300% annual interest to holders of the CLVA token.
With the Clever protocol solution, investors own their own CLVA holdings, private keys, and wallet. In other words, they are in total control of their assets, unlike the centralized banking industry. They own their crypto assets without any attached conditions. The Clever DeFi protocol guarantees no fees or conditional rules, and investors can get up to 307% yearly interest.
Unlike most of the yield farming protocols, Clever does not require users to stake their tokens for a specified period. Although the protocol uses the Ethereum network, it is able to avoid the high gas fees by using a specialized distribution system. Due to its open-source nature, Clever is readily accessible to anyone with an internet connection. It can easily accommodate the unbanked population of the world and grant them access to savings.
The decentralized finance industry is fast on the rise, and more people are moving away from the traditional banking industry. This indicates that people have been seeking an alternative to the poor service delivery of financial institutions. Projects like Clever DeFi protocol are only the first of many, and the DeFi industry is yet to mature fully.