The DREP Unique Strategy in the Second Half of Defi Craze
As we head into the end of the year, the decentralized finance game has rapidly matured. Gone was the time when unaudited contract from a random anon team popping up on Twitter could easily attract millions of TVL in hours. The trend has cooled down, and cooler heads prevail. Right now, what we really need is something that rises above, that really solves users’ pain points in a real life scenario.
The DREP Foundation has taken its time; we have published research about the hidden risks involved with smart contracts when the Defi trend has just kicked in; we have conducted numerous researches about popular Defi projects and delved into the secret ingredients that made them successful. And, DREP Team has optimized and improved our existing public chain technology to make docking and transition to the Defi ecosystem much easier.
Smart Contract — Angel or Devil?
Since its advent, smart contract has promised so much, and actually has provided even more than its original promise in the field of financial services. We have seen the rise of the decentralized central bank — Maker DAO, with its wildly liquid and popular asset token DAI. We have witnessed the original gangster — Compound, which issued tokens when users borrowed money. All these minting, trading, and lending would not be possible without the aid of the ingenious smart contracts on ethereum. So, is smart contract an angel?
Not so fast. Smart contract entails significant risks in their creation, tracing back to their origin. The DAO hacker attack cost investors millions and directly resulted in the split off of ETC chain which still exists today. Such events, when the industry matures, will cost even more and are not tolerable.
DREP Innovative Solution
To counter this, the DREP team proposed an innovative blockchain application model named the Smart Pipeline. It can achieve high efficiency and enhanced security, solving practical needs that could not be solved with the use of Smart Contracts.
Smart pipes are the “pipes” for data transmission, transferring data between Blockchain virtual machines and applications distributed through smart contracts.
Smart pipes are smarter than smart contracts. After the Smart Pipeline is deployed on-chain, its execution can be automatically triggered according to pre-specified conditions. In comparison with Smart Contracts, the Smart Pipeline will be able to handle more complex conditions and its execution process will be much more difficult to interfere with, thus drastically lowering the probability of smart contract hacks frequent in the Defi space.
The Congestion Problem
To be honest, Ethereum gas fees went up because too many people used it. The more users and projects that build on the chain, the more busy the network is. The more transactions the network processes, the slower it becomes. And when transactions slow down, the gas fees will rise.
While the price surge and the success of numerous Defi projects seem like positive things for the public chain, the gas fees that went along with the rally are revealing an important problem: congestion.
Many Defi users have voiced complaints about slow transaction speed on the network, claiming that Ethereum may not be the right place for the robust development of the various projects. In the end, most successful Defi products are built on the ETH network.
DREP chain solves this issue by being compatible with both EVM and WASM Smart Contracts and having a dual-layer structure constituting a root chain and customizable sub-chains. The root chain takes charge of transactions, while the sub-chains are responsible for building smart contracts. This allows Defi projects to independently and simultaneously do two tasks, facilitating deployment of smart contracts and pipelines.
POW is outdated and clumsy. The DREP Chain prioritizes efficiency when it comes to consensus selection — an improved PBFT was deployed as the consensus mechanism for both the root and sub-chains. The root chains will also use an improved DPOS mechanism, promoting the adoption of multi-party signature and thus being able to amalgamate the benefits of the DPOS consensus mechanism.
Cross Chain Barrier
Scalability remains one of the most challenging hurdles to blockchain development. And we don’t necessarily mean speed, but data scalability, multi-chain scalability. Many Defi projects cannot scale on many chains.
Due to limitations inherent to blockchain systems, however, ethereum doesn’t have much flexibility. Or other public chains which run Defi projects. This situation makes data interoperability a pain point for developers and users.
Interoperability simply means “cross-communication” It is imperative that two or more ecosystems can communicate. In the traditional financial system, the majority of payments infrastructure is interoperable.But in the Defi space, the majority is not.
DREP Data Integration
To achieve data connectivity , DREP has designed a cross chain system of master ID and multiple sub-IDs. DREP Client allows users to manage data and assets on decentralized platforms within one interface. The numerous Defi projects’ asset and data integration are achieved without changing the original platform’s core design and economic system.
At the same time, DREP will ensure that Defi players receive industrial standard privacy protection, preventing data hacks. The corresponding zero-knowledge proof is stored in the DID document as verifiable credentials. DREP has also built a set of finance-related bridges, which enable the participants to develop their own financial Dapps that can cross-talk with any of the decentralized blockchain protocols. This will unleash the next generation of decentralized innovation.
DREP has redefined the meaning of decentralized finance, which was only confined to the trading over the blockchain. DREP believes that decentralized finance can be developed by not just focusing on trading services, but by value, scalability, and communication.