The world of DeFi is rarely dull. Between yield farms, rug pulls, and a growing ecosystem, the fun never seems to end. But looking past the hype and excitement, several real issues need to be solved before DeFi can go mainstream. Aside from the regulatory hurdles, there are only a few blockchain networks capable of handling the workload. Ethereum, the most popular blockchain for smart contracts, is quickly suffocating in high fees and slow transaction times. To overcome this limiting factor, projects like OpenDefi are partnering with Layer-2 solutions like Matic to lower Ethereum costs while speeding up transaction speeds.
From our last article, it is clear that OpenDefi’s strategy of bringing DeFi to the masses is ambitious. Tokenizing real-world assets is not a new idea, but to this point, it has been done only a handful of times in isolated cases. To bring millions of users this functionality and speed, solutions need to be fast and inexpensive to use.
From their recent AMA, OpenDefi’s recent partnership with Matic could solve these issues and allow legacy financial markets an onramp to DeFi. As a Layer-2 solution, Matic is equipped to handle the workload of hundreds of thousands of transactions that would be expected if precious metals, stocks, bonds, and physical assets are added to OpenDefi.
Taking a broader look at the potential market reveals a demographic in need. There are as many as 1.7 billion people in the world without bank accounts. Without access to banking services, it may be nearly impossible to qualify for a loan, own land, or start a business. OpenDefi would give anyone with a smart device access to a world of cross-border liquidity, instant loans, and numerous ways to generate income through staking rewards. International yield farmers may soon find they can sustain themselves through farming and staking alone. Micro-transactions may soon be possible on a local level as Matic can handle small payments with minimal fees. And because specific tokens represent a real asset like gold, stores of value can be transmitted with a simple swipe on a phone. Families might pool their resources to acquire tokens representing a plot of land or even commercial real estate. As Tarusha Mitta, COO and Co-founder explains, Matic is a shortcut to accelerating the pace of adoption.
“Matic allows us to process transactions at 1/1000th of the cost on Ethereum in addition to the high throughput of 7200 TPS. The proven on-chain scalable architecture, a great community of early adopters, and amazing support team makes Matic a key partner for OpenDefi.”
Since OpenDefi is chain agnostic, it can connect to any number of compatible blockchains. This interoperability could allow NFTs on other networks to be accessed, sold, staked, or used as collateral for an instant loan. Terra Virtua is one blockchain project already creating high-value NFTs based on recognizable intellectual properties that could easily plug into the OpenDefi system. As these NFTs cater to the collectibles crowd, rare or exclusive sets could easily be valued as bespoke works of art.
The new world of DeFi is never stagnant. As a Binance Launchpad project, Matic has the technical team and the backing to make a real impact in the Ethereum ecosystem. Where this technology is mainly deployed depends on where it will make the most impact. Matic’s partnership with OpenDefi gives a glimpse into where the markets are heading. And the market seems to be moving to an increasingly decentralized space.
Website – https://opendefi.finance/
Twitter – https://twitter.com/oropocket
The Daily Chain
*Disclaimer – “OpenDefi” is our Media Partner, and this content is made possible with their support. The above article does not represent financial, investment, or trading advice, and we do not recommend the purchase of any cryptocurrency or product without consulting a financial aid. The Daily Chain strongly encourages you to do your own research before making any investment decisions.