Before DeFi projects can be adopted massively by people, it is expected that they have the best of both the traditional world that people are giving up and the new realm that the decentralized finance ecosystem offers.
The OpenDeFi is an Open Finance Protocol created by OroPocket. It is dedicated to close the ravine that has been noticed between physical assets and DeFi.
With the OpenDeFi, people can now invest in digital assets that can be obtainable in the real world and traditional financial system through the on-chain synthetics. Apart from that, users can easily access instant loans whenever they want. Lenders can have access to interest rate from their digital assets that they lent out.
The gap between the world of decentralized financing and real world assets are being closed by OpenDeFi and this is done by tokenising real world assets on blockchains. They end up offering financial services on those assets, while making the investments very liquid.
OpenDeFi will go ahead to tokenize tangible assets while offering users innovative services such as staking, flash loans, gaining a reward on idle digit assets and so on.
What Open Finance intends to do is to make the DeFi and blockchain ecosystem intriguing for institutional investors and funds to become a part. Institutional investors won't mind being a part of an ecosystem that is free of issues like price slippage. They would want to jump into a blockchain ecosystem that allow users to have access to high liquidity and instant settling.
Use Cases of OpenDeFi
OpenDeFi can be used in the following ways:
Tokenisation of real world assets
OpenDeFi allows real world asset to be tokenized and insured, while these assets are kept in the custody of custodians, who regularly check the value of these real world assets. The asset holders are given ownership of these assets via the blockchain technology. Currently a tokenized gold is equal to a gram of 24 Carat 999 Purity Gold, which is stored in the vault.
Instant Trade
With the Open Finance, users can easily buy and sell without the need for an exchange. It will also permit quick exchange to reduce the issues of price slippage. Users do not have to trade with one another or even via an exchange, they will trade with the smart contract of the asset. The price is gotten by the smart contract via Oracles, while offering great liquidity.
Instant low-cost loans
With Open Finance, borrowers will be able to have access to instant loans without paying exorbitantly high interest rates common with traditional banks. Borrowers won't have to face the issues that are common when they use conventional banks like intrusive credit checks, stringent rules, as well as the issues that come with central bodies.
Conclusion
The basic truth remains that the conventional banking system is plagued with a lot of issues and some of them have been discussed above. This is why the OpenDeFi will be a hit to institutional investors.
