DeFi

DeFi taps TradFi to accelerate adoption of real-world tokenized assets

Published

8 months ago

14 June, 2024

DeFi taps TradFi to accelerate adoption of real-world tokenized assets

Decentralized finance, based on blockchains, has given us a new and more efficient way to manage and operate financial assets. With the tokenization of real-world assets such as commodities, stocks, shares, bonds, real estate, fine art and more, DeFi offers an alternative approach to improve accessibility and increase liquidity in financial markets.

RWAs, when represented as tokens on blockchain platforms, act as a bridge between traditional and decentralized financial worlds, combining the efficiency and flexibility of digital transactions with the economic value of physical assets.

At the same time, DeFi represents an alternative to traditional financial systems that offers more security and transparency while improving accessibility. It powers innovative concepts such as decentralized lending, where blockchain facilitates peer-to-peer engagements between borrowers and capital providers. Transactions are governed by immutable smart contracts, eliminating middlemen.

DeFi is a solution to the limitations of traditional financial systems, which are notoriously slow, opaque and inaccessible to many.

One of the first examples of tokenization was Maple Financewhich pioneered a protocol converting the rights to receive interest on bonds into digital tokens, which could be freely traded via decentralized markets.

Early efforts like this paved the way for other forms of tokenization. It is possible to tokenize any type of financial asset and expand accessibility through fractional ownership. These symbolic assets help to strengthen inclusiveness, bring more liquidity to the markets and expand access to capital, all in a completely transparent manner.

Connecting TradFi Risk Management to DeFi

RWA protocols today rely on robust blockchain infrastructures with processes in place to enable physical assets to be represented as digital tokens. As part of this tokenization process, it is necessary to implement capabilities focused on risk management, in order to protect investors and safeguard their capital investments.

To create these risk management systems, some of the most innovative RAW protocols are – perhaps surprisingly – following the lead set by their peers in the traditional financial industry. TradFi has long established the best practices necessary to enable secure lending, borrowing, and trading of financial assets, and many of the same principles can be applied to DeFi and RWA environments.

TradFi Veterans Jay Abbasi And Kristal Gruevski were among the first to seize this opportunity when they co-founded Zivoé, a real-world asset protocol that aims to disrupt the extremely predatory, high-interest consumer lending market. She designed a protocol to help victims of these predatory loans reorganize and refinance their debt repayments in order to obtain better terms. The platform works by pooling on-chain capital provided by investors and lending it to consumers. Liquidity providers earn interest on repayments from these borrowers, generating a sustainable return on their investment.

Zivoe CEO Abbasi, who spent more than two decades working in the financial industry before entering the crypto space, decided to give consumers a better deal after seeing firsthand the damage caused by the predatory practices of traditional lenders. Gruevski, an expert with more than a decade of financial compliance experience, is the company’s chief legal officer. They are joined by Zivoe’s risk advisor Walt Ramseyspecialized in risk management, having overseen multi-billion dollar unsecured consumer loan portfolios at companies including JP Morgan Chase, Lloyd’s Bank and Elevate Credit.

Another key figure at Zivoe is its third co-founder, Chief Technology Officer. John Quarnstromwho previously helped Maple Finance build its groundbreaking RWA protocol.

Dream Teams Can Power RWA Growth

This “dream team” sets Zivoe apart in the RWA space, with an eclectic mix of blockchain innovators and financial experts helping it design a more robust framework and facilitate safe and equitable access to credit that also benefits to borrowers and lenders.

After launching its mainnet in the second quarter of 2024, Zivoe is on track to grant its first consumer loans in the second half of the year. Its progress illustrates the benefits that exist when DeFi protocols leverage the expertise that abounds in the TradFi space, setting an example for others.

RWA protocols can go even further by cooperating with regulators to help create the legal frameworks necessary to promote decentralized lending. Such guarantees will go a long way in encouraging the rest of the TradFi sector, including institutional investors, to participate in DeFi and RWA and unlock the true potential of this technology.

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DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

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DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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