The Fundamentals of Decentralized Finance are a filter utilized to point people to safe and dependable DeFi ecosystems of value.

These standards are not designed to guarantee any kind of return but instead help create a tool to make good financial decisions. The fundamentals are as follows:

Trust-less, Immutable Code

Immutable (or unchangeable) code means that no change can happen over time. The code is completely closed (having no admin keys) and impossible to change the terms and outcomes. This immutability allows DeFi products to be permission-less, trust-less and provides censorship-resistance (having no capability to shut down the code without shutting down the entire internet itself). Many projects claim to be decentralized, but actually rely upon administrators to not change the code. True DeFi must be trust-less.

Trustlessness in blockchain ecosystems simply means you do not need to place your trust in any one stranger, institution, or other third party in order for a network or payment system to function. Honest people have lost billions to scams, thefts and hacks because they gave up control of their money.

Completely Transparent

Investors in DeFi value their independence and security which is why we prefer decentralized exchanges where there is no sign up, no KYC, and no counterparty risk. Because its on chain, you can inspect every address seeing what it bought or sold. Access to real data so users can make the most informed decisions possible is a must.

Pays Yield

In a world where yield is drying up, many investors are looking into non-traditional vehicles for return-on-investment. The average annual returns for Simple Genius Miners are ~9.93% and the average annual returns for Advanced Genius Miners are ~32.14% — both scenarios yielding these returns while never having to give your crypto to middlemen.

This standard filter has been created around principles that promise true DeFi. Although there are other helpful filters to have in place when it comes to investing in Crypto, The Fundamentals of DeFi are the bedrock of sound judgment in true decentralized ecosystems.