Secured Finance Updates in 2023
Team, New Brand, UI/UX, Protocol, Yield Curve, Community, and Roadmap
Overview
Last year was a productive year at Secured Finance as we continued to expand our team with skilled and enthusiastic individuals committed to creating solid standards in the interest rate market. We collaborated with Ethereum and Filecoin ecosystem projects and partners to collaborate on our platform development and expand the community. As a result, we gathered over 600 test pilot user sign-ups. In 2023, We have ambitious plans to launch our lending product on Ethereum main net.
A Look Back our Journey in 2022
- Team Building
We strategically recruited experienced talent from top companies such as Goldman Sachs, HSBC, and Microsoft, utilizing their traditional finance expertise to redesign the interest rate market and potentially increased the liquidity in the secondary market. We also onboarded senior smart contract engineer and full stack engineer who played crucial roles in developing our platform. - New Brand/UI&UX
We introduced a new brand identity with a modern and professional UI/UX design that offers a user-friendly interface for both technical and financial users. - Yield Curve
A major accomplishment was launching our yield curve feature on our development platform, which enabling users to easily borrow and reinvest cryptocurrency with a high level of certainty and low risk.
- Protocol Developments
The engineering team made groundbreaking advancements in the Secured Finance platform protocol, including 1) a gas-efficient on-chain order-book system, 2) standardized zero coupon fixed-term loans, 3) massive gas reduction through “lazy evaluation” and 4) liquidation functionality. These updates revolutionized the user experience, making it more efficient, cost-effective, and secure for managing investments on the platform. - Community Growth
After rebuilding the infrastructure, we focused on building the community to serve more users. We expanded global communities, including Amsterdam, Austin, Singapore, London, Lisbon, and Seoul. In particular, we held events with our strategic partner, the Filecoin Foundation. In Singapore, we invited large-scale Filecoin storage providers (SPs) to discuss financial solutions for lending, storage and data markets. In Lisbon, we hosted a DeFi Meetup to discuss the future of DeFi and the strategy to prepare for the next bull run. In Korea, We held 2 events and invited large storage providers. As a result, we built an in-person relationship with potential users globally and asked them to join our upcoming Test-Pilot Program.
Crypto Industry Challenges in 2022
The cryptocurrency industry in 2022 was a series of disasters. The Luna and Terra collapse and the collapse of centralized exchange FTX, market credibility, and transparency have been eroded.
However, the crisis in centralized exchanges was an opportunity for DeFi. Leading digital asset venture capital firm Pantera commented, “Last year, many problems of centralized financial services emerged, but DeFi operated relatively well. This year, more complex and interesting DeFi services will appear.”
In fact, following the FTX incident in November, the trading volume of decentralized exchanges increased rapidly. According to Defillama, the trading volume of decentralized exchanges was $103.84 billion in November, the highest since May.
As we went through these events, we focused on providing users with permissionless, transparent, and reliable services.
Secured Finance’s Road Ahead in 2023
We aim to officially launch the G4 crypto lending market (BTC, ETH, USDC, FIL) at the end of Q1 2023. Before the main net launch, we will conduct a test pilot program. In the long term, after building the yield curve, we plan to expand our platform with non-deliverable-forwards, cross-currency swaps, and structured products.
We will constantly working on improvement and innovation of our processes to better serve our clients. Here is a look at some of the key developments on our immediate roadmap:
- Liquidation Optimization
The liquidation process is an essential aspect of Decentralized Finance, and we are always working to improve it. Our process is triggered when a borrower’s liability is valued at more than certain amount of the collateral, which provide a mechanism to protect lenders from default. - Itayose Process
We open a new order book every quarter to ensure that our clients can access to the latest opportunities. Orders are accepted 24 hours before the new order book starts trading and are processed according to predetermined rules. We only accept limit orders to ensure a fair and transparent process. - Automatic Rolling
Our smart contract allows clients to reinvest their funds into the nearest 3-month bucket, minimizing the impact of market fluctuations. This is a cost-efficient way to maintain positions and ensure that interest rates are set at or around the mid-price when the roll occurs. - Zero-Coupon Standard
We created a new financial product standard for the on-chain loan market, including zero-coupon and fixed maturity features. This means that the loans don’t have to pay interest, but they’re traded at a discounted rate. At maturity, these loans can be redeemed for their full face value, resulting in a profit for the investor.
In 2023, our goal at Secured Finance is to expand our platform and user base through innovative processes and cutting-edge technology. We plan to condcut a marketing campaign and strengthen partnerships with other DeFi projects to bring new, user-friendly products to the market. Building strong relationships with the community is critical to growing our platform and increasing transaction volume. Our vision is to be a leading player in the DeFi space, creating accessible and user-friendly products that bridge the gap between traditional and decentralized finance, and driving the movement toward a more open and inclusive financial system.
Message from Founder Masa Kikuchi
Masa, the founder of Secured Finance, is interviewed to talk about the company’s key accomplishments in 2022, plans for 2023, and thoughts on the current state of the cryptocurrency market.
About Secured Finance
Secured Finance’s mission is to bridge the gap between traditional and crypto finance and create a robust and efficient blockchain-based financial platform. Initially starting with four people, the company has since hired many experts with rich experience ranging from Goldman Sachs traders to senior project engineers, focusing on developing institutional-grade DeFi for digital assets. Furthermore, Secured Finance is building an interbank grade P2P capital market and providing the infrastructure. We aim to create yield curve solutions for everyone and provide hedge solutions to achieve long-term maturity for the capital market in the crypto space.
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