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DeFi B end diversified investment Revelations
In the first week of Q3 2020, well-known DeFi apps Aave and Compound also announced that they will officially include b-end in their future plans, a trend that will become standard on more and more DeFi platforms. Back in May, Acala partnered with Current, a US mobile bank, to support users to access DeFi market revenue with one click of the DOLLAR, opening a new DeFi market growth engine window — from a c-end market focused on quick trial and error to a more secure, efficient and compliant diversified financial market.
With the gradual disappearance of the demographic dividend of Ethereum DeFi, the lack of growth will also promote the transformation of the market layout. For Boca DeFi ecology, it will be forced to transform the dilemma, but at the beginning, it will use stable assets in the liquid market to obtain more portfolio market benefits. Therefore, Acala provides a diversified financial paradigm HyFi (Hybrid Finance) for the B-end market before its launch. Both Internet banks and fintech companies have the opportunity to leverage Acala’s core infrastructure to gain cross-chain DeFi market dividends.
HyFi (Hybrid Finance) enables Finance to return to its essence
Faced with competition between DeFi and CeFi, Acala’s choice is HyFi.
CeFi’s unique advantage lies in its high flexibility and ability to quickly adapt to customers’ needs, while DeFi has a higher trust on this basis and avoids black-box transactions. However, in the face of the public, the user experience is relatively inferior. The essence of HyFi is to use the concept of fusion and symbiosis to make all capital flow efficiently and freely like rivers. Current and Acala are also aiming at this, to truly reduce the efficiency gap with traditional finance by providing efficient, safe and decentralized services.
Acala, a Poca DeFi platform, incorporates decentralized over-collateralized lending, DEX, liberating liquidity products, and network liquidity incentives. Substrate framework provides EVM and WASM smart contract modules for developers. Greatly reduce the cost and difficulty of developers in public chain development and operation. More importantly, while enjoying the safe relay chain service provided by Boca, Acala will realize more portfolio benefits of assets through cross-chain. Taking BTC as an example, if we want to enjoy large secondary market benefits with BTC, we can also obtain DOT Satking benefits or DOT LP benefits. Staking BTC on Acala in exchange for aUSD, taking LDOT from DEX in return for Staking, and taking a portfolio in two steps. If LDOT provides liquidity to Acala DEX, That would have the added benefit of trading fees and liquidity incentives.
Acala x Current
Current will directly integrate Acala’s suite of DeFi products out of the box into its core products to bridge its proprietary core banking platform with a decentralized open platform to create a transparent, fair and complete financial services loop. Current and Acala are currently launching a “Yield Engine” that combines traditional finance with DeFi, which means users will be able to spend DeFi revenues in their daily lives using their bank cards. You can also use your dollar savings for DeFi and other CeFi/DeFi scenarios to enjoy the diversification bonus of DeFi and achieve the effect that 1+1 is greater than 2.
The collaboration between Acala and Current will serve as an “accelerator” for HyFi (Hybrid Finance) service infrastructure, helping capture value for the nearly 3 million members of Current’s platform and increasing the diversity and volume of assets in the DeFi world. Push DeFi to truly enter the traditional financial world.
Elephants are waking up and competing under regulation
In today’s global economy, investment in the next five years or even longer is more focused on “circulation value”, and institutions will also give DeFi greater market appeal and imagination. As a cross-chain DeFi infrastructure, Acala will help more and more financial institutions overcome technical barriers to capture value in a timely manner and achieve better liquidity. As the Internet financial industry ushered in the era of strong regulation, DeFi will stand at the same starting line with traditional finance under the premise of standardization and innovation, complementary development and dislocation competition.
We believe that similar regulatory framework and differentiated positioning in the future will provide DeFi with more cooperation foundations with traditional financial institutions. Cooperation with giants will further enhance DeFi’s competitiveness in the financial market and serve different markets and customer groups. HyFi’s model makes traditional finance and DeFi fit and compatible. It helps clients leverage their limited resources to capture more portfolio returns in liquid markets, which in turn helps giants activate databases to build better risk control data from real on-chain trading data.
Facing the b-end market containing DeFi gold in the future, HyFi will become a bigger “star and sea”, and only continuous deep cultivation can win the war.