We strongly believe crypto-assets should be owned and managed by you only. That’s why our mission at DeFiner is to help users gain financial freedom by building a truly decentralized finance (DeFi) network for crypto savings and loans.
Introducing DeFiner 2.0: a permissionless debt market with multi-chain support and 100% privacy.
Problem with Current DeFi Lending Protocols
The DeFi industry is still on its way to true decentralization. The current DeFi lending protocols serve as gatekeepers with the right to decide which tokens will be a part of their pool. Some protocols have introduced the DAO governance model to decide which coin will be listed on their platform. However, even with a DAO, this design is still considered a centralized framework because power is still with a small group of people.
Let’s take a look at the data: There are over 6,000 tokens listed on CoinMarketCap, however, less than 30 crypto assets are supported by current lending protocols. The reason these platforms are only available to top market cap tokens is liquidation. Their liquidation mechanisms rely on the oracle price feed model, which prevents them from providing a lending market for low-market cap tokens. This is why the majority of assets do not have their own lending markets, making scalability impossible under these circumstances.
There is more potential once we solve this problem. There are tremendous opportunities for these low-liquidity assets such as NFTs, real estate, credit tokens, etc. which can be circulated in the debt market.
Introducing DeFiner 2.0
With that, I want to introduce the DeFiner 2.0, a 100% permissionless lending protocol. In DeFiner 2.0, any tokens and assets you want to add, can have their own lending pool, which can easily be created by anyone.
In order to properly manage the risks, each lending pool will have its own customized configurations, such as collateral factors, interest rate range, loan terms, liquidation mechanism, etc. Customized configurations also help to avoid isolation and keep good liquidity for each pool to improve capital utilization. The lending pool of each asset is connected to the main DeFiner savings pool which only supports high liquidity assets such as stablecoins, BTC, ETH, etc.
With DeFiner 2.0, more applications can be introduced in the ecosystem, such as initial loan offerings (ILO), non-collateralized loans, off-chain asset-backed loans, fixed-rate loans, term loans, etc.
DeFiner 2.0 will be a perfect solution for the current problems facing DeFi lending protocols, and it will bring true decentralization to the DeFi ecosystem.
High Gas Costs — The Barrier to DeFi’s Mass Adoption
The high gas costs on the Ethereum network are widely known to DeFi players. This is a problem the entire ecosystem needs to work on together because high gas fees are not user-friendly for retail investors. For the mainstream lending protocols, the average cost to complete a deposit or withdrawal is close to $100 USD. The cost is just simply too high to bear for most DeFi users.
Centralized Finance (CeFi) giants have taken the lead in solving this issue. Players like Binance, Huobi, and OKEx launched their Ethereum Virtual Machine (EVM) compatible blockchains, and plan to use them as a gateway to DeFi for their users. Though blockchains like BSC have been criticized for their centralized nature, they are already less centralized than their current CeFi offering — not to mention such chains do have better transaction outputs and lower gas fees.
A Multi-Chain Solution
The emerging chains from CeFi players actually created a great educational opportunity for users to get to know and understand DeFi. At DeFiner, the community has always been a top priority. We aimed to create a solution for both retail and institutional users, and that’s why we started our multi-chain initiatives now.
Our initiative will increase the usability of our users by reducing gas costs significantly. Plus, users will be able to easily access assets issued other than Ethereum.
Our first direction in the multi-chain effort is OKEx Chain, which is based on the COSMOS architecture. We anticipate launching our first cross-chain with OKEx this May (TBD). But we are not stopping there. Chains like Binance Smart Chain, Solana, Polygon, Huobi Eco, and TRON are all in our plans for the future.
DeFiner will link the ecosystems of different public chains, opening up cross-chain asset financial interoperability. Players of all fund sizes will have the unique opportunity to choose a chain that best fits their needs.
The multi-chain solution will not only boost the scalability of DeFiner, but will also boost DeFi adoption to mainstream society.
All transactions in the current DeFi system are 100% public information. Transparency is the very reason some users choose crypto in the first place. However, it can backfire sometimes.
Although the user identity of each public address is not available, it is not “Mission Impossible” to identify users and their related addresses with data analysis and data mining. True financial freedom cannot be achieved without users having the option to do traceless transactions.
We at DeFiner are innovating a new function within our smart contract to enable users to transfer their balance in the contract without disclosing any information. Here’s how it will work: Bob can deposit from Address A into our smart contract. Then he will be able to do an internal transfer to Address B before withdrawing the fund.
In this way, the DeFiner smart contract acts as a black box. It helps the user without recording any relational information between the deposit and withdrawal address. Here at DeFiner, we take privacy and decentralization seriously, and this new function will help us to achieve some of these initiatives the industry is striving toward.
DeFiner DAO Governance
Decentralization in the financial industry is inevitable and that includes organizational structure changes to a more cost-effective and more decentralized structure. That’s why it’s essential to introduce the DAO model to the DeFiner ecosystem.
DeFiner will build on the DAO voting mechanism. Our community will have the power to decide configurations and directions of the DeFiner protocol. This includes building a discussion forum, a smart contract driving the voting process and rules, a strong FIN holders community, etc.
DeFiner 1.0 Improvements
Gas Fee Reduction
To solve the high gas fee issue, we are also making improvements to our current products. We are planning to release a reduced gas fee version in the very near future, with the aim of reducing gas costs by as much as 50%!
DeFiner Mobile App
We are excited to introduce one more option this summer: a mobile app! We will provide iOS and Android options, but will first rollout iOS first for security reasons. The DeFiner mobile app will include a built-in wallet, saving users the hassle of finding a third-party wallet to access the DeFiner protocol.
DeFiner 2.0: True P2P w/o the Middleman
DeFiner is a true believer that financial freedom and ownership are the cornerstones of the digital economy. Your assets should be owned and managed only by you — not middlemen. By utilizing blockchain technology, we will work to achieve our mission in order to bring true financial freedom to our users.
Things are looking up at DeFiner, which stands for — Decentralized Finance Innovator.