Confidence Crises: the Opportunity of DeFi
Those things unusual always help to expose the underlying problems, by this it means economic bubble, indiscriminate margin and credit crisis. Thus it comes the crisis of confidence towards the existing financial system. I see DeFi as the revolution against the traditional financial system,, the subversion. Crisis means opportunity.
As the traditional financial system starts to reveal its long existing problems: most of the assets were made by capitalists, some in reasonable way without being noticed by the majorities.
. “It is perhaps well enough that the people of the nation do not know or understand our banking and monetary system, for if they did I believe there would be a revolution before tomorrow morning”.
Substance by Henry Ford
A Finance System Could NOT Be Involved in
When we say we care more about transparency, safety , and reliability, is to say we concern the limitation how an ordinary people participate in the process of the traditional finance ecosystem.
The limitation is determined by all aspects, such as the credit problem, the threshold of the number of funds, as well as the license and the threshold of power, and so on.
Such limitations often make ordinary users vulnerable groups in the financial system. And under the rules of the top class, wealth will always flow towards the top.
For example, global currencies have been issued continuously, have we participated in the decision?
Has it been issued to individuals?
We can only sit and see that the world keeps issuing money, and the money in our hands keeps depreciating.
Now, Choose a More Transparent and Fair Way to PARTICIPANT in Finance
Since all the black swan events made people aware of the risks, and before the final strike comes, it is the time to choose a more transparent and fair way to participate in finance.
The Fairness of DeFi
Decentralized Finance Gives You a Role you Cannot Play in Traditional Finance.
Take WaykiChain DeFi as an example, the holder of WaykiChain governance coin WGRT, has both the power of governance parameters and the benefits of the interest and penalty of the entire system. This is a role you cannot play in traditional finance. In DeFi system, it is full of fairness.
No Middlemen Costs
Since the beginning of the industrial era, the global financial structure has remained unchanged, relying heavily on various intermediate institutions. Central banks, investment banks, commercial banks, securities companies, etc. It can be said that any financial activity needs to have more than one intermediary profit from it. For example, in addition to the loss of the price difference of a transaction, a transaction also includes brokerage commissions, exchange transaction fees, stamp duties of regulatory authorities, etc.
The price difference earned by these so-called “middlemen” makes them the richest class in the world.
However, DeFi adopts an open protocol and provides low-cost financial services for everyone at low cost, which greatly reduces the cost of transactions.
Finance Efficiency Improvement through Blockchain
Blockchain enables financial transactions to achieve transaction settlement. It has gone beyond the traditional settlement system of financial institutions. When it comes to cross-border transactions. In terms of the transfer, a cross-border transfer can sometimes take several days, but in the blockchain system or DeFi system, the actual ownership of assets has changed when the transaction occurs.
DeFi: More Innovations to be Derived
The constant product market maker is an innovative product in the field of DeFi. We believe that DeFi can not only improve and improve the original traditional finance but also have more innovations to be discovered. The CTO of our team wrote such a sentence in the introduction of WaykiChain code: “the only limitation of the blockchain is our imagination.”
Get to Know WaykiChain DeFi Ecosystem
In the DeFi ecosystem of WaykiChain based on the core layer of public chain:
A) The stablecoin WUSD is generated with the collateralized WICC.
B) The interest paid will be part of the liquidation penalty fee. It will be used to repurchase WaykiChain governance coin, WGRT and burn; distribute dividends to WGRT holders.
C) At the same time, when the extreme situation, if there are not enough liquidators in the market, the system will issue WGRT to balance the bad debts. And those who collateral WICC or participant governance voting will receive WGRT airdrop.
WaykiChain DeFi: Standhold During ETH Collapse on March 12th
The security of DeFi can be divided into two parts: the economic mode and the technical safety.
Economy model: we use the 4 mechanisms of excess mortgage, liquidation system, risk reserve and emergency fuse to deal efficiently with various market conditions.
WaykiChain DeFi system is developed on the core layer of the chain. This means the asset standard incompatibility that occurred on Ethereum will never happen WaykiChain;
5 common asset standards on chain;
There is also the oracle machine and price feed system. Our DeFi system price is fed by 11 super nodes to adopts the median.
We argue from equity and fairness that if a sizable fraction of the wealth created by an economy will be generated from early-stage investing, then a correspondingly large fraction of society should have the ability to participate in that wealth creation. That is why we call on the leads to take steps that would enable all the ordinary investors from various social class to broadly gain access to early-stage capital and monetary management as an asset class within their portfolios, consistent with the appropriate investor protections, efficiency and risk-prevention. That’s why the power of DeFi through blockchain technology can take the lead to help. And WaykiChain is ready to lead the revolution.