The wilderness of DeFi and its consequent lack of accessibility has warded-off too many potential CeFi users – and makes the possibility of mass adoption all but a sweet dream.
A hard-to-digest user experience that narrows users to diehard crypto fans and the absence of community-oriented mechanisms to incentivize users to share more quality content to benefit each other turn DeFi into a scary place for some, and a no-go zone for many.
Social trading is about simplifying decentralized finance (DeFi) by leveraging the power of social features to reassure web 2-savvy users accustomed to traditional interfaces – all in order to encourage widespread adoption.
The forgotten promise of P2P
Decentralized finance has grown by leaps and bounds since its inception, but has not fully embraced its original idea of P2P.
While decentralized transactions allow for the direct and unmediated exchange intended at the genesis of the technology, this singular and often complex environment leaves potential users alone and unaccompanied.
Today, some people connect to decentralized or centralized web platforms and get lost in trying to emulate their favorite influencers – sometimes even suffering expedited liquidations, which represents a major issue that needs to be addressed.
Source of trust
Social trading – dubbed “SocialFi” on Nested – can provide the serenity that users are looking for.
Giving the opportunity to observe others can serve as an informative pillar to give the necessary foundation to one who wants to discover DeFi but is walking in the dark.
Fully mastering this new market does not happen overnight. It requires significant research and considerable amounts of time.
It is therefore necessary to anticipate users’ needs.
Decentralized platforms must give access to reliable information tested by individuals who grasp what is at stake and understand web 3 fundamentals in order to establish relevantly – and above all successful – strategies.
And no, tutorial videos are not enough.
We need to move towards an environment where you don’t need to be an expert to invest in tokens or other cryptocurrencies. This way of thinking foments elitism in a world built against it.
The idea is to be able to browse freely and look for profiles with a visible investment history that is convincing enough to inspire other users to copy the strategies they see.
Decentralized social trading – as on Nested – has the potential to introduce P2P learning to empower new investors and greatly increase the number of DeFi players.
It’s not a coincidence that massive web 3 investors like Alan Howard or Jump have decided to support Nested’s SocialFi ambitions.
Etoro to the power of 3
The platform that democratized stock market investing has proven that business model to be attractive, so there shouldn’t be any reason why it couldn’t work in web 3 – especially given the wide range of crypto-assets available.
Decentralized social trading has – just like on Etoro – the power to strengthen communities led by various influencers who will have the chance to increase their own credibility by helping their followers to profit.
If followers tangibly benefit from the content shared, and platforms – like Nested – allow strategy creators to be rewarded through royalty mechanisms, then they will be more motivated to hone their skills, diversify their approach and share quality content.
That’s why giving new and old users the opportunity to benefit from each other would cultivate the ecosystem organically.
Finally, social trading’s lighter aspect would also certainly reassure those whose heart palpitations are easily put to the test once off the beaten path of traditional finance.
Cryptocurrencies remain more volatile and therefore riskier than traditional finance – social trading can mitigate the risks but not negate them.
New users might be led to blindly follow influencers who despite their performance are themselves not immune to bad decisions.
It is therefore important to note that social trading should not be a tool for delegating responsibilities.
Each user remains the sole decision-maker and should do his own due diligence as much as possible to understand the market’s dynamics before investing.
Any investor – regardless of how friendly the environment might be with SocialFi – is alone in his decisions.
Copying a trader’s strategy is not the same as buying something under warranty. There is no customer-care service and the trader does not owe anything to those who copy his or her investment strategies.
Beyond Social trading, Nested has another advantage up its sleeve: NFT technology.
SocialFi meets NFT technology
A value proposition consisting of socializing DeFi and leveraging NFT technology at the same time is unprecedented in DeFi.
NFT technology constitutes the key element that technically eases investment and therefore revolutionizes crypto investment.
It represents a massive leap forward when it comes to fees because minting an NFT necessitates only one transaction, which drastically cuts the bill.
Let’s look at the sending of a portfolio for instance.
Nested gives the possibility to transfer any portfolio, either original or copied, from one account to another.
Instead of paying the transfer of each asset – one after the other like you traditionally would – you only pay the transfer of one NFT that encompasses all the assets.
So, if you have three distinct tokens in your portfolio and wish to transfer the ownership of these assets, you will pay the fees of one asset only–the Nested NFT– instead of the fees corresponding to three different transactions.
Another advantage of using NFTs is to offer users the ability to use their NFT as collateral for another investment on the condition that all assets contained in the portfolio and used as collateral are supported by a borrowing protocol like Aave.
It also gave more flexibility to create a portfolio marketplace – just like on Opensea with JPEG NFTs – but this time, it’s on Nested where any user may copy other users’ portfolios.
Many filters are available to find what suits you.
All this is part of a greater approach to making DeFi accessible and practical – all in the hopes to democratize crypto investment.
Nested is conscious that before reaching the masses, it must first convince CeFi users that it is the best-decentralized alternative to what they are accustomed to.
To that effect, Nested is developing a mobile application that will rival those of CeFi while offering the advantages of DeFi – essentially gathering the best of both worlds.
CeFi users are used to smoothing onramp and offramps solutions that make investment easy through speedy bank card deposits or even SEPA transfers. Nested intends to align with that approach to simplify DeFi investment.
One of our goals is to abstract Metamask and make the idea of a seed phrase a notion of the past. Users must be able to create a profile and a portfolio in no time like anyone would when creating an Uber account.
This, in part, will be made possible by building a wallet on top of a seedless non-custodial solution – such as Magic Link – inside of our solution.
All this will provide our users with new portfolio and wallet management features that ease authentication as well as on and off-ramp processes like on Binance or Coinbase.
Finally, being a DeFi native usually induces that one must manually alternate between chains to trade. This however would not make for a simple user experience.
This is why Nested intends to become cross-chain by the end of 2023 – once the technology will have matured enough and be more applicable.
In the meantime, Nested has plenty of advantages that put it ahead of the curve against its competitors. Its innovative social focus and usage of NFT technology combined with the fact that it is decentralized and aggregates several protocols make it all a top runner.
Nested is backed by some of the most prominent actors of the crypto sphere – like Alan Howard, CMT Digital, Jump, and Republic Capital –who believe in the platform’s vision and in what the team tries to achieve.
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