Can DeFi scale to real finance? What is missing?
DeFi has done major steps in the last 6 months, but can the DeFi scale to real finance? What should be added to DeFi to
DeFi – Decentral Finance – refers to the Ethereum based finance ecosystem where the users are controlling their assets.
DeFi is a response to many crypto platforms, which controlled the client assets (from example centralized crypto exchange or centralized crypto lending). These central crypto platforms did not align with the key idea of the blockchain, where the users and only users should control their assets.
Following services are available in Decentral Finance:
One of the key issues in Decentral Finance is crypto collateral handling. DeFi systems keep all their business logic on the blockchain, there is no KYC (Know Your Client), there is no Crypto Credit Score. This results in the high collateral ratio in the Decentral Finance crypto lending.
In SmartCredit.io we respect very much the DeFi philosophy. However, we think the right approach is the hybrid solution between centralized crypto solutions and DeFi solutions. It’s about using the blockchain for what is really required on the blockchain and deploying other components (Crypto Credit Score, KYC, Collateral calculations) in the off-chain components.
DeFi has done major steps in the last 6 months, but can the DeFi scale to real finance? What should be added to DeFi to
Liquidity pooling is very extensively used in DeFi. It is one of the DeFi key pillars together with open-source smart contracts plus governance tokens. This
SmartCredit.io’s vision is to create a self-reinforcing DeFi lending platform. The first version of our non-custodial crypto lending platform available in the Ethereum main-net: https://app.smartcredit.io.
How could a borrower have a low collateral ratio? A collateral ratio in size of 300% + is standard for the DeFi borrowing/lending. A high
Earning a passive crypto income is the key driver of the crypto lending market. The yearly crypto lending volume exceeded 40 billion USD in 2019.
This article focuses on the Compound.finance review in the context of the existing fixed income market and emerging crypto fixed income market. The following topics
Most of crypto lending platforms advertise their interest rates, as the key benefit for the borrowers and lenders on their platforms. But are the interest
DAI interest rate is around 10% in DeFi. Considering the current low yield on most of the investment classes and the upcoming negative interest era,
In the middle of February, the bZx (https://bzx.network ) got “hacked”. However, this was not via the technical means but the usage of bZx and
This article focuses on the risk analysis of the custodial crypto lending platforms and of non-custodial crypto lending platforms. The aim is not to say
Here is SmartCredit.io pitch — 3 minutes and 40 seconds — from the Paris Blockchain Week. Enjoy! SmartCredit.io Pitch Transcript So, we are in the lending business, in the
We were honored to give a SmartCredit.io Deep Dive lecture at the HWZ Zürich Blockchain seminar (https://fh-hwz.ch/produkt/cas-blockchain-economy/) Here are our presentation slides. In the following,