In 2020, the most popular keyword in the blockchain field is DeFi, and the DeFi field is also showing explosive growth. Among them, the locked position value of Compound alone exceeds 1 billion US dollars, and the entire market is very hot.
With the release of the star project DeFi2.0 project X-DeFi (Future Finance) white paper, after reading the whole article, it is summarized as follows: X-DeFi stands on the shoulders of Tezos giants, inherits Tezos' technical advantages, and is based on the advantages of traditional DeFi In the above, the reward logic and promotion mechanism have been optimized, allowing the connotation of DeFi to develop further. This article interprets X-DeFi's white paper to open a door to the X-DeFi world.
*The birth and background introduction of DeFi:*
In August 2018, Brendan Forster, co-founder and chief operating officer of Dharma Labs, announcing De.Fi, A Community for Decentralized Finance Platforms announced the birth of DeFi (Decentralized Finance, translated as decentralized finance or open finance).
The DeFi concept has undergone iterations and has gradually evolved from the initial "financial reformer" to the "financial revolutionist". Blockchain technology has begun to transform from an application serving finance to a reshaping of finance, catalyzing its rapid implementation.
*X-DeFi business model:*
X-DeFi, or "Future Finance", is jointly funded and developed by 13 institutions including Tezos and Tezos Foundation (Tezos Foundation), DRAPER, Cyberfund, and is based on the DeFi ecological star project created by Tezos.
The agreement in X-DeFi is based on the Balance agreement on Tezos, which is used to establish a fund pool based on changes in the supply and demand of assets and calculate the interest rate by algorithm. The suppliers and borrowers of assets interact directly with the agreement to earn or pay interest rates.
The X-DeFi project includes DeFi banking currency business and regular investment and financial management of Tezos super nodes. In the future, it will provide mainnet digital currency support such as ETH and BTC to realize the interaction between Tezos and other mainnets within the agreement. The X-DeFi business ecosystem will include four categories of services including currency banking application services, non-currency banking application services, securities industry financial application services, and financial application services.
*X-DeFi's business mechanism:*
Through the establishment of super nodes, X-DeFi provides miners with a high amount of income in the initial stage, with a fixed period of 20 cycles (cycle), attracts and retains users through the initial high income and marketing operations, and uses the interest rate difference between DeFi , Platform transaction fees (non-chain gas), a large amount of concentrated funds pledged to increase the mining capacity, etc. to offset the expenditure, the super node will infinitely approach the normal mining income of Tezos within a period of time, and the subsidy of XTZ will also Gradually reduce until X-DeFi can function well on its own.
*The commercial value of X-DeFi:*
1. Full coverage of digital currency functions
X-DeFi provides comprehensive coverage scenarios in a series of DeFi applications such as wallets, trading centers, stablecoins, payments, lending, etc.
2. Asset hedging
The unique DeFi mechanism can avoid asset fluctuations caused by sharp fluctuations in the digital currency market, and protect users' investments from shrinking.
3. Store value, investment and financial management
Users provide liquidity for the system and store digital currency (XTZ), and will enjoy the generous rewards of the system. Based on Tezos's unique reward mechanism, the user's income from investment and financial management is higher than others.
4. Complete ecosystem
X-Defi aims to establish a complete DeFi ecosystem, relying on Tezos' technical advantages and international recognition to create an unprecedented DeFi2.0 digital system ecosystem.
*Conclusion*
In this white paper, we have a detailed understanding of X-DeFi --- Tezos-based DeFi2.0 system. We believe that with the release of the phenomenon-level application of X-DeFi, it will vigorously promote the development of the DeFi field and promote digital Prosperity in the economic field.