WaykiChain CEO: DeFi to Break Loose BTC From the King

WaykiChain CEO: DeFi to Break Loose BTC From the King

Press Release
June 13, 2020 by worldcryptotimes
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The term DeFi has been hot recently, but many people have not seen where DeFi’s vision and future lies. In my opinion, DeFi’s disruption to the financial sector will not be less than Bitcoin’s disruption to the currency. Within 10 years, the market value of Bitcoin will be surpassed, and it may be that WaykiChain,
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The term DeFi has been hot recently, but many people have not seen where DeFi’s vision and future lies. In my opinion, DeFi’s disruption to the financial sector will not be less than Bitcoin’s disruption to the currency. Within 10 years, the market value of Bitcoin will be surpassed, and it may be that WaykiChain, even if it is not WaykiChain, is also a token in the field of DeFi.

Let me first talk about the traditional financial system. When it comes to finance, let’s start whaith the issuance of currency. Modern currency is essentially an invoice, and this invoice is endorsed by the credit of the repayer. For example, the national debt issued by the state is a government-level loan, and the repayment ability is evaluated by economic development and taxation. After that is the commercial banks’ borrowing notes. Their repayment ability relied on their reserves in the central bank since this part of the reserve was only part of the reserve, commercial banks also increased their leverage when issuing currency. The bottom layer is the private loan, like P2P. We can see that the closer to the top level, the lower the loan interest rate, the better the credit. In this system, ordinary people’s borrowings are inherently different from government’s borrowings. One is that interest rates are high, and the second is due to poor credit. However, it is different in DeFi. The issuance of stablecoin in DeFi is issued in the form of collateral loans. Everyone has the same power. The repayment ability depends on the collateral, and the collateral of the digital currency should be in theory, the best collateral. First, the liquidity is strong. Second is that it is splittable, and it can be traded in 24 hours worldwide and can be liquidified at any time. In other words, the DeFi of the blockchain gives people the power to issue debits (currency), and also has the credibility and low interest rate advantages. Therefore, DeFi thoroughly implements the concept of equality for all and achieves inclusive finance.

DeFi is an opportunity that allows people to participate in the finacial system equally

The 1% of the world’s people have 50% of the wealth, and these 1% are almost all capitalists. They control the rules of the entire financial system. When currency is oversold, how should interest rates be determined, and through a series of rules to harvest the wealth of the world, so that wealth has been gathering towards the head. It is these people who have become the biggest beneficiaries of the entire economic system. As ordinary people, we neither have the ability to change the way we make money, nor can we participate in the formulation of rules. But DeFi gives us such an opportunity to participate in various roles in a system. For example, people who hold the governance coin WGRT or MKR can become the theoretical shareholders of the bank, enjoy the interest rate differential income of loan interest and deposit interest, and can also make distributed decisions and enjoy the treatment of capitalists. In addition to being able to participate fairly in the financial system as users, the market value of the economy of the entire system will reflect the price of tokens when there are more participants, and people who are optimistic about this set of economies can also expect to get rich.

The market also need a new vision that make them re-believe blockchain

Bitcoin’s original vision was to make a peer-to-peer electronic cash system, telling the story of a currency. The core circle attracted by this story is anarchists. The earliest bitcoin’s positive appearance was that bitcoin ATMs were accepted again in some places. But Bitcoin’s deflationary attributes and value fluctuations are inherently unsuitable as currencies, so this story can’t go on. But as an asset, the constant amount of bitcoin and its strong liquidity tell a new story of sustainability. Bitcoin Cash, Litecoin, etc, are also telling the same story. But we found that none of them surpassed Bitcoin. The original vision of Ethereum was to be a global computer, and it told its story as a public chain. The core circle attracted by this story is technical geeks and programmers. They start their own business logic on this. But in the 2017 it was the ICO that was popular, and ICO allows more ordinary people to participate in the future construction, and it makes people rich. However, except for Ethereum, other public chains are hard to utilize this mode. I think the opportunity for the next wave of blockchain comes from DeFi. The core circle is someone who wants to cross the class in the traditional world and change his/her role in the traditional financial system. This part of the core circle is larger than anarchists and programmers. In fact, DeFi’s ultimate vision is to provide a fair financial system, and WaykiChain is working step by step in this direction. What surpasses Ethereum must not be another Ethereum, the market also needs a new vision to make them re-believe in blockchain. 

WaykiChain is aimed at making a one-stop DeFi platform and open protocol

All DeFi starts with borrowing. Finance revolves around currency, and as mentioned above, the essence of currency is borrowing, so a loan agreement is the basis of DeFi. Ethereum has MakerDAO and issued stablecoin DAI, and WaykiChain also has Waykichain CDP and issued stablecoin WUSD, which is also WaykiChain’s first agreement in the field of DeFi. Then what is the role of governance coin? The governance coin WGRT is the shareholder of the central bank in this financial economy. All the interest normally charged by the lending system and part of the fines will be repurchased for destruction by WGRT, which is equivalent to distributing dividends to the currency holders in disguise. That is to say, some of the DeFi products created by WaykiChain will revolve around the WUSD currency system, and the beneficiary of the currency system is the holder of the WGRT governance coin. This is completely different from DeFi on Ethereum. DeFi on Ethereum is spliced from various protocols, and there are dozens of stablecoins. First of all, using this method to establish DeFi, the synergy effect between different products is limited, and users must be familiar with multiple products without a one-stop service experience. More importantly, this will also expose a lot of security issues. This year’s two major attack events, Dforce and Lightning Loan, are both cross-protocol compatibility issues. We think that this model is like building a sandcastle on the beach, it is impossible to build a skyscraper. WaykiChain has developed the core lending agreement in DeFi at the bottom layer, unifying the currency standards and pricing units in the economy without compatibility issues, and can use stablecoins to pay miners’ fees, which is something Ethereum can never do with their current thinking. WaykiChain is going to build an integrated DeFi platform and open protocol.

WaykiChain DeFi layout, one-stop financial services to achieve full circulation

Liquidity is fundamental to DeFi. Liquidity means moving literally. For example, the stablecoin borrowed from the loan agreement must be sold to the market to cash out. Then there is someone in the market who needs to buy this stablecoin. The motivation of such a person is nothing more than making money. Therefore, in a financial system, only a loan agreement is not enough A deposit financing or investment agreement is also required to make the stablecoinh WUSD . Therefore, WaykiChain will launch a synthetic asset trading product WaykiX at the end of July and early August. This product can theoretically allow users to trade various valuable assets around the world, making some users have real demand for WUSD. After WaykiX, we will also improve financial management, as well as off-chain asset release and investment, automatic market maker and other agreements. By the end of 2021, we will complete all the basic closed loops of DeFi and let the assets fully flow in it. At that time, users can truly enjoy one-stop financial services on WaykiChain. The services include loans, deposits, financial management, investments, transactions, derivatives and so on. All agreements are completely open and transparent, which is lower in cost, more efficient and more profitable than traditional finance.

In 2013, Bitcoin led a wave of bull market with the idea of currency. In 17 years, Ethereum led another wave of bull market with the concept of global computer. Then the next wave of bull market needs a new leader and a new story and belief. I think the DeFi we do is the pioneer who leads the next wave of blockchain.

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