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Why OpenDeFi Could Make Blockchain Mass Adoption a Reality

by Stephen Young

February 12, 2021

2020 has been a year to remember in the blockchain industry. Cryptocurrencies were found to be largely correlated with the equity markets, suffering an equal demise during the infamous March 12 global crash. Bitcoin went from a 12-month low of $3,867 in March to challenging a new all-time high by November. In between this period, markets rallied back and speculation in the crypto markets turned largely to validation.

For example, within one month of launching its new crypto service, Paypal was responsible for purchasing over 70% of all newly mined Bitcoin from October 22 to November 22. On first glance, one could argue this is exactly what mass adoption looks like. Unfortunately, there are billions of people around the world that do not have access to reliable internet connections, let alone services such as Paypal.

One company, OpenDeFi, is making it their mission to bridge this gap by using real assets as a way to open up financial inclusion to nearly 2 billion people globally. OpenDeFi is a protocol built on Matic that aims to bridge the gap between decentralized finance (DeFi) and traditional finance (TradFi). With DeFi demand now reaching over $14 billion in total value locked, the timing to merge the two has never been better.

OpenDefi Provides a Suite of Innovative Services

In anticipation of the vast possibilities that DeFi can unlock, OpenDefi created an ambitious product and services roadmap that includes the tokenization of real assets, flash loans, multi-chain interaction, and yield earning opportunities on these assets. OpenDeFi achieves this utilizing Matic and Tezos, delivering a low-cost and high transaction throughput performance.

A deeper look at these services reveals the vision that OpenDeFi is striving for:

First, the tokenization of assets such as gold and silver allows the asset to be easily traded and transferred globally. OpenDeFi offers internal trading of the asset with minimal price slippage and deep liquidity. The protocol also offers instant loans at an interest rate of 2-5% per annum.

Second, the ability to earn yield on your assets and multi-chain support creates passive income opportunities for people that have never had the opportunity to do so. Assets are utilized efficiently on the platform to create a win-win situation for users and OpenDeFi.

Another key aspect to OpenDeFi is the ability to bank the unbanked. A recent ​report​ from the World Bank indicated that roughly 1.7 billion people do not have access to financial services. With OpenDeFi, anyone with any amount of capital, can participate by purchasing a fractional amount of an asset. This can be very impactful in developing countries.

Removing Inefficiencies in Traditional Finance

Traditional finance is dominated by centralized institutions like banks that are full of inefficiencies. These inefficiencies can be seen in how capital and data is managed and moved. Funds are constantly moving between different regions or financial institutions, often with delays, fees, and other burdensome requirements.

Meanwhile, customers have to constantly provide the same background information to different financial institutions. Furthermore, the isolation between institutions and regions hinders data and capital flow, giving rise to price premiums and information asymmetry. DeFi can help mitigate these inefficiencies. OpenDeFi closes this gap by using blockchain to quickly and easily handle transfers, as well as existing data protocols to confirm customer identities.

OpenDeFi is Led By Blockchain Veterans

The OpenDeFi team is decentralized with an executive presence in India. Led by Mohit Madan and Tarusha Mittal, two blockchain entrepreneurs that previously built Ethx, OroPocket and Cloudrino, OpenDeFi has assembled a powerful network of investors, partners, and communities.

Currently, the OpenDeFi token (ORO) is live and trading on Uniswap, BitMax and a slew of other Exchanges. ORO experienced high volume on launch indicating significant interest in the project from the greater crypto community. The token is currently trading well above presale price and has over 1600 holders at time of writing. The OpenDeFi app OroPocket is currently available on both the Google Play store and Apple App Store.

As DeFi growth continues and gains traction, projects like OpenDeFi are in a position to ease the transition for users from traditional finance and bridge the gap. With 2020 in the rearview, it will be exciting to see what OpenDeFi can achieve.