EasyFi on the path to Greatness
Of course, a number of problems & motivational breakthroughs have happened ever since Easyfi began on this journey to create such a platform.
Let’s review those.
1.) High cost & slow speed of transactions.
The incumbent ethereum network is a vast ecosystem that offers great resources and eases to build. But it comes at a cost which is increasing by the day. High gas fees or transaction costs are a huge barrier to mass adoption and scalability. Latency, low throughput, higher block completion time makes network accessibility difficult. In light of this challenge ethereum faces currently, it is therefore important to build alternatives and curtail dependency.
2.) High collateralization ratio
Currently, most DeFi users need to lock 150–200% of assets to avail loans which are predominantly used for trading and accessing leverage across different protocols. While it adds to the cost of a loan, it also presents a great barrier to market expansion. Lately, new mechanisms like credit delegation, flash loans have tried to solve the problem but they are still evolving. It is believed under collateralized and uncollateralized lending is critical for mass adoption.
3.) Lack of Smart financial products
Traditional financial markets offer many choices and a wide range of products to choose from. Although, these are more easily accessible by institutions than retail users. So users have to subscribe and use what is being offered by institutions. Mutual funds, Fixed deposits, term deposits, insurance, bonds, securities are pushed to market while DeFi has turned the tables. DeFi has not only empowered developers to create and sell such financial products, it has given a voice to users to demand products of their own choice and suitability. But currently, there’s a lack of smart and sophisticated financial products in the decentralized finance market. Therefore, new financial products with more real-life use cases need to be created and made more accessible through decentralized finance.
The proposed solutions to these problems include the following. Porting necessary infrastructure to Layer 2 Blockchain networks, engaging Undercollateralization & Borrower’s evaluation, provision and availability of smart Products.
To learn more about EasyFi Network visit the links below;
