DeFi, or decentralized finance, is turning into the most important nascent trend in finance
The ability to borrow funds, take out loans, deposit funds into a savings account, or trade complex financial products — all that without asking anyone for permission or opening an account anywhere — is quickly gaining traction.
Permissionless is key
While DeFi stands for decentralized finance, the fact it’s permissionless is equally as important, perhaps more so in its current state. It means, essentially, that anyone can use these services, with the only barrier to entry being a little bit of technical knowledge.
Say you’re living in a country whose sovereign fiat currency has a fast-increasing rate of inflation. Instead of saving in that currency and effectively seeing your capital dwindle, you could turn your money into a U.S. dollar-backed stablecoin and get a decent return rate on top of that. Of course, if U.S. dollars aren’t your currency of choice, you can use DeFi to invest into other fiat currencies that track the value of gold and other assets, etc.
DeFi gives everyone in the world access to an essentially unlimited number of financial products and services. These opportunities, which range from simple savings products to complex trading platforms, are nearly frictionless, in the sense that they require very little infrastructure. The world’s 1.7 billion unbanked adults can, theoretically, access all these opportunities without asking anyone for permission.
Also, by largely removing the middlemen (banks and related institutions), DeFi has the potential to make certain products cheaper, which could make a big difference in the long run.
Each blockchain platform has its own benefits, but each remains largely separated from the others. If two ecosystems could be connected to one another, they could benefit from each other’s platform’s strengths. Users could also benefit, via financial opportunities without having to sacrifice shifting their base from one blockchain to another.
This is precisely what EFG’s latest development—its DAPP Network bridging—has solved. EFG project provides the technical mechanisms to connect separate blockchain mainnets.
The EFG dApp can be cross-platform which can be done with ‘wrapped tokens.’ Any assets (native coins or tokens) on any blockchain can be swapped in a decentralized way (atomic swaps), with wrapped tokens moving back and forth between ECOChain and the other blockchains. Wrapped tokens follow ECRC-20 standard so that they can join the dApp without problems.
EFG provides a total of 1,000,000 tokens and 900,000 EFG are locked in smart contract. The current price is around $39+/ EFG.
GPT (Grace Period Token) is a token used to delay the settlement of mortgage assets. It can also be mined by using EFG mortgages that comply with the ECRC-20 standard.
GPT provides a total of 10,000 tokens and 9,000 GPT are locked in smart contract. The current price is around $2537+/ GPT. It has become the main factor in the protection of investors’ risk extension benefits in EFG’s lending behavior.
ECOChain, the parent company behind EFG&GPT, has their own native coin “ECOC” running on ECRC-20 standard. The total supply of ECOC is 94,000,000 and 7,200,000 ECOC are locked in smart contract with the current price of around $0.17+/ ECOC.
For ECOChain, we believe that decentralization is one of the great forces reshaping financial services. Along with the unbundling of the three traditional core banking activities of lending, payments and deposit-taking. Decentralization is transforming how we consume financial services and how banks operate. We are still in the first quarter of a longer game and many of the greatest benefits and advancements are still ahead.
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