Taking DeFi Mainstream: A Conversation With Anshul Dhir of the EasyFi Network

Dan Stein

Editor at the Startup Thread

The DeFi industry has gone through some major changes in the past couple of years and saw unprecedented growth. However, with the popularity also came certain challenges and hindrances which now stand as roadblocks to the industry’s further growth. 

We recently had a conversation with — from the EasyFi network to discuss the current problems with DeFi and possible solutions. Here are his insights.  

1. What do you think is the level of demand for decentralized lending platforms, and how do these platforms differ from traditional lending platforms?

Ever since the infamous DeFi boom of 2020, the demand for DeFi’s lending platforms has gone up exponentially. These platforms have some clear advantages over their traditional counterparts, making them a perfect choice for both and lenders. Because the whole process of lending and borrowing is decentralized, the need for central authorities is eliminated and access to capital is democratized. This allows the platforms to surpass geographical borders and provide world-class financial services across the globe. Moreover, on DeFi platforms lenders are poised to earn significantly more returns when compared to traditional platforms.  

Such obvious advantages have created an unprecedented demand for DeFi lending protocols. As a result, the total volume of assets locked on these DeFi protocols has skyrocketed to over $249 billion and Ethereum’s DeFi ecosystem alone is now catering to four million users worldwide. 

The demand is definitely evident and if some of the present-day DeFi problems are solved, the path to mass adoption could be a smooth one. 

2. Where do you think the present-day DeFi protocols are falling short?

Today’s popular DeFi protocols have paved the way for a future where capital is accessible to everyone who needs it. However, their approach is not sustainable. On lending platforms, for instance, the present model of overcollateralized loans is a hindrance to mass adoption and excludes a major chunk of the population. If users have to lock 150-200% of assets to obtain loans in DeFi, they’d rather stick to the old ways. The high transaction costs and low transaction speeds on these platforms do not help either. 

Moreover, in our opinion, the DeFi market lacks variety in the kind of financial products its churns out. In TradFi, users have a plethora of options like mutual funds, index funds, insurance, fixed deposits, and term deposits to cater to the financial aspirations of all kinds of people. But in DeFi the options are very limited and are usually suitable for users with higher risk appetites. 

3. Going forward, what do you think is that one key factor that could propel the industry towards mass adoption?

Mass adoption is more of a journey than a destination. And it is not a single factor but an amalgamation of different factors that can lead us to it. As mentioned before, bringing a variety of different financial products into DeFi can make the industry appealing to a wider section of the population. Reduction of costs associated with DeFi transactions and can also help. 

However, interoperability could be pivotal for the mass adoption of DeFi. It is important to blur lines within the DeFi ecosystem, by breaking down walled gardens and giving users the freedom to seamlessly navigate the DeFi space and choose platforms that suit them best. This could improve the overall user experience in DeFi and contribute to its growth.  

4. Your website mentions “EasyFi is the catalyst for DeFi mass adoption.” Can you elaborate on this statement?

Yes! We believe that EasyFi is the key mass adoption in DeFi because we’ve addressed the major hindrances. As a layer-2 platform that can run on all popular blockchain networks, we’ve created a scope for interoperability in DeFi. Along with this the layer-2 architecture also solves the scalability and transaction cost issues. Our protocol is gasless. Along with this, we have an illustrious suite of structured financial products that fit the needs of masses. 

We’re probably the only platform to facilitate collateralized, undercollateralized, and uncollateralized loans. We’ve also made it possible for users to stake their precious metal or tokenized commodities as collateral to ensure universal access to capital. So, by bringing in variety, solving interoperability and transaction costs, we believe we have the perfect recipe for mass adoption. 

5.  There has been a significant rise in layer-2 protocols in the past couple of years. EasyFi is one of them. What advantages do you think layer-2 protocols possess over those on the mainnet? And what makes EasyFi’s architecture unique?

Layer-2 protocols have the unique advantage of being able to be deployed across blockchain networks with ease. They can be built in a way to leverage the power of the mainnet and also solve the issues with it while including a suite of features of their own to make the whole network better. And this is what we aim to achieve with EasyFi as well. 

Our architecture includes a WIP SDK for native implementations along with an API bundle used for building integrations with the mobile and web applications in addition to native web 3 integration at the contract layer to ensure that the platform is easily accessible to both beginners and veterans in the space. This architecture also makes it easy to deploy EasyFi on any blockchain network and it is currently available on Ethereum, Binance Smart Chain, and Polygon.  

6. Going into 2022, where do you think DeFi, especially decentralized money markets are headed? What would you think investors should know before taking the plunge into DeFi next year?

The coming year is touted to be extremely crucial for the future of DeFi. With thousands of innovative projects waiting to be launched, major problems within the DeFi ecosystem could be solved and the number of users could grow exponentially. Moreover, world governments have started taking notice of this emerging industry and regulations could come into play. 

For investors, educating themselves about the industry could help them identify projects with potential and make the right investment decisions. Projects that are built for long-term sustainability could withstand any momentary hindrance. So, before taking the plunge, I believe investors should try and gain as much insight as they can about the world of DeFi.

Related Stories

Tags

Taking DeFi Mainstream: A Conversation With Anshul Dhir of the EasyFi Network
Source: Super Trending News PH