Endless Liquidity

Bridging Traditional and Decentralized Finance

Alistor Zimon
unstoppable-official
4 min readSep 18, 2023

--

The integration of Real World Assets (RWAs) into the blockchain isn’t merely a progression; it’s a paradigm shift. As traditional and decentralized finance begin to converge further, Unstoppable is at the forefront, strategically leveraging this coming enhanced liquidity to bridge both worlds.

The Unstoppable Bridge — Integration at its Finest

While Crypto-to-FIAT bridges are becoming more common, Unstoppable’s Bridge stands distinct in its depth within the Unstoppable ecosystem. More than just a simple conversion tool, it anchors directly within our ecosystem, like our innovative decentralized margin and spot trading engine.

This synergy ensures not only fluidity in conversions but also the ease of accessing and leveraging other financial instruments, all without ever leaving the application.

Looking to the future, our Bridge paves the way for incorporating Real World Assets into the blockchain. A bold leap few protocols dare to take due to regulatory uncertainties and constraints. With a reliable and transparent custodian structure, a myriad of potential off-chain assets are set to find their home integrated in the DeFi space.

RWAs in DeFi: The Tidal Wave of Potential

Real World Assets are beginning to carve their niche in the DeFi landscape. The continuous increase in token holders, TVL, and volume is evident for this trend. RWAs on the blockchain, once a mere buzzword, are now becoming mainstream.

Giants like Coinbase and Franklin Templeton are publicly placing their bets on RWAs’ tokenization. Homebase finalized their second tokenized home sale completely on-chain, and McKinsey highlighted the escalating adoption of tokenization across various sectors in their latest report. It’s clear we’re witnessing something big.

Pushing Boundaries with Unstoppable FX

Following the Bridge as foundation, Unstoppable FX doesn’t just introduce Forex to DeFi but creates a new layer within the DeFi ecosystem. While the FX trading engine allows users 1:1 backed leveraged positions in multi-currency stablecoins, it offers liquidity providers an efficient and profitable mechanism to utilize their existing FIAT reserves. This synergy fosters a positive feedback loop throughout the entire Unstoppable ecosystem — and potentially far beyond.

To grasp the vast potential, let’s throw in some numbers: Forex’s off-chain retail segment, boasting a staggering $117 trillion in volume, represents only 6% of the global yearly Forex volume. In comparison, the crypto-market as a whole, doesn’t even reach 2% of this volume.

The Bigger Picture

Incorporate crypto CEX traders, modern stock trading app users, Forex retail traders, and our vision starts to become crystal clear. This fusion aims to create a harmonious financial ecosystem, one that effortlessly combines the on-chain and off-chain worlds within one application.

Despite being a decentralized protocol with our initial offering being directed towards the on-chain market, our offerings towards the following target-demographics, such as active CEX users reveals our true potential. Once we incorporate Real World Assets, such as Commodities, Forex, and Stocks, the scale of crypto itself begins to seem minuscule — showcasing just how early, yet thrillingly promising, this space still remains.

Redefining the Horizon

Merging traditional finance with DeFi isn’t just an integration; it’s a metamorphosis. Trust structures and volume potential of traditional finance, coupled with DeFi’s flexibility, decentralization, and speed, is an exciting prospect.

Sure, there’ll be challenges — regulations, tech shifts, and market dynamics. But with a clear vision and your support, the sky’s the limit. It’s not just about creating a niche; it’s about redefining decentralized finance together with you and the other strong builders and innovators in this industry.

As we navigate this financial revolution, it’s not about whether these worlds will merge, but how impactful and transformative they’ll be when they do. And with Unstoppable’s tools in hand, traders will be perfectly positioned to make the most of this transformation.

Dive into our platform, explore the new features, and be sure to stay connected with us for more updates!

--

--