Tex DeFi Services Vision
TexPay and Tex Market tackle two of the most important pillars of DeFi- Payments and Marketplaces. As we launched Total Exchange, we set out to make cryptocurrencies universally accessible and unlock efficient global commerce. We extended our vision to include Lightning Network integration that ensures scalability and near-free payments on Tex Market purchases. As a DeFi project, we will continue to accelerate decentralized payments, marketplaces and banking services. The cryptocurrency space in particular and the fintech space in general is now abuzz with the arrival of the latest technological sensation that might shape the future of commerce: Decentralized Finance or simply DeFi. Without getting into too much wordiness or complexity, let us first define what DeFi actually is.
What is DeFi?
DeFi or Decentralized Finance is quite simply the provision of automated finance to people around the world. Normally a bank or a traditional institution services consumers’ needs on financial services like loans, mortgage, insurance or a simple savings account. However, banks can be difficult to deal with and demand unreasonable collaterals and what not. Not to mention, inefficiencies and the red tape is just too much to deal with sometimes. Banks are also limited by liquidity issues, geographical positioning and lack of digital penetration in their technology and operations. There is a serious opportunity to disrupt the sector with innovative solutions. DeFi leverages the capability of blockchain networks like Ethereum and others to provide automated finance opportunities directly between transacting partners without the need of a middleman like a bank. Smart contracts are ultimately used to achieve this useful feature, enabling automated settlements of agreements if certain clauses are met without involvement of a guarantor which is generally the position taken by a traditional financial institution. This smart contract option can be used to create self-executing applications called decentralized applications or dApps in short. DeFi has come out to become the biggest use case of dApps in recent times, generating deep interest across fintech circles. In a lending use case, as a lender and borrower agree on conditions for finance, they can write and sign on a smart contract and their collaterals and conditions will be locked in a transparent self-executing program. Whenever one of the transacting parties needs to end the contract to get access to their funds, he/she can simply fulfill the obligations of the contract. This happens automatically and it cannot be cancelled, delayed or subverted by any of the transacting parties.
Key values of DeFi:
- Transparency in Code on the blockchain for anyone to verify
- Global accessibility to DeFi services and commerce- requiring just internet connectivity
- Interoperability with other applications within the DeFi ecosystem
- Decentralized Governance that ensures fair, honest and equitable decision making
Why does DeFi have a lot of potential?
The DeFi financial contracts are fair and execute in stone-cold accuracy and according to its original intention. Service providers set their own rates and compete with each other to bring the rates down and target service seekers from all over the globe unlimited by geography or other territorial issues. This decentralized, borderless nature of finance seems like something out of a science fiction novel or a futuristic possibility, however, we are in the realm of these services right now. DeFi dApps allow you to create USD-pegged coins aka stable coins and lend money out to people based on your existing crypto, exchange one asset for another and innovate with fully automated complex trading strategies. Currently, there are more than $10 billion worth of crypto locked in DeFi contracts and increasing daily. The rapid adoption of DeFi suggests the demand for innovative solutions that are globally accessible, secure and transparent. Total Exchange continues to observe and provide DeFi solutions that strengthen commerce on the Tex Marketplace.
