How to Get Started in DeFi for FREE?
Decentralized Finance (commonly referred to as DeFi) is a blockchain-based form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks to offer traditional financial instruments, with Ethereum being the most common. However, this requires capital which some might not be willing to put up.
It was by chance that I came across something that allows me to get started, with ZERO upfront investment. That is the Star Network.
What is the Star Network?
Star network is a social defi network, whose main objective is decentralisation through social power. It is an invitation-only platform, meaning that you cannot join without a referral. It lets users grow their balance of Star as a reward for inviting their trusted people to join the network.
Star is a new form of digital currency. It facilitates social communication and peer-to-peer transactions between users.
Once you join, you accumulate the digital currency called ‘Stars’, and you need to login every 24 hours. Star is expected to list on crypto exchanges in Dec 2022, by which time we will know the value of our accumulated stars in the app. It is totally free to participate, so I feel that the risk is low to none.
Star network has started rolling out Know Your Customer Verification (KYC) verification process on selected users in the early stage of the project to tackle security issues.
Some terminology to know
Nominal Balance- how much Star balance you have earned (including contribution from both KYC-ed and non-KYC-ed users)
Convertible Balance- portion of Star Nominal Balance earned from KYC-ed users
Libra- an unlocking token which you can use to:
1) get KYC slot
2) unlock convertible balance to realised balance
Libra is an NFT, hence it is a transferrable asset with expiry date of 7 days. If you are a Libra holder, once you have passed the KYC, you have the option of using the Libra for yourself or keeping it and transferring to another user.
Realised balance- actual balance you can withdraw, transfer or use. Star Network mobile app also serves as a wallet of Stars. Once you have realised balance in your wallet, you can initiate peer-to-peer transfer to any other Star wallet holder, regardless of their KYC status.
We will only be able to withdraw the realized star balance when they get listed in Dec 2022. This is when there will be value for the Stars which we have accumulated. For now, we can only send Stars or the Libra token to each other.
What problems does Star Network solve?
Before investing in a project, it is important to know its use cases. What problems does it address? How does it improve what is out there currently?
1) Solves inequality of mainstream cryptocurrency distribution by giving access to everyone
While 0.8% of the entire adult population possess wealth more than USD 1 million, only 0.1% of the total Bitcoin wallet possess Bitcoin worth USD 1 million. In other words, the top 2.14% of Bitcoin wallet own 94.77% of total Bitcoin circulation. Bitcoin has a high barrier of entry, due to the high cost and computational power involved. The Star network eliminates this high barriers of entry, giving everyone a fair chance to participate. With Star, anyone with a smartphone and internet connection can get started. The system rewards users not just by how early they join but also the contributions made to the build up of Star Network community.
2) No more robots
Some users have been exploiting the system by creating a list of fake accounts by robots and earning referral bonuses. Star Network solves this problem by having a KYC process. As robot accounts can never pass the KYC process, the part of the nominal balance earned from/ contributed by the activeness of robots can never be unlocked into realised balance.
3) Protects the blockchain economy by prioritising liquidity in more developed countries
Although everyone will go through the KYC process eventually, the network will release KYC slots to users in countries with stronger economic power. Prioritising liquidity allows Star Network’s blockchain economy to be in sync with the real-world economy, giving long term sustainability to the value of Star.
Reasons to Join
Project Team is backed by ex-senior executives of investment banks including Goldman Sachs, Morgan Stanley, technology giants like Google, Facebook, Apple, and payment networks including Visa and Paypal.
First ever socially created crypto network that allows peer-to-peer financial transactions.
Low barrier of entry (it is FREE to start)
KYC Verification Process
Minimal battery consumption needed for the app
Supports both iOS and Android
Reasons to Avoid
Need to tap the timer to mine stars every 24 hours (this takes only 5 seconds at most)
Power up every 12 hours (another 5 second effort)
What’s the worst that can happen?
If this project turns out to be a scam, we lose NOTHING, other than a few seconds everyday.
As it is still in the early stages of its mining phase, the network is rewarding early adopters with higher rates. Personally, I see this project as having zero risk for unlimited upside, making it worth it for me to get involved.
Just spare a few secs every day to do this and see what happens when it gets listed on crypto exchanges in Dec 2022.
If you’re interested, you can use my invitation code benedictgoh to get started now! Remember you can’t join without an invitation/ referral.
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