5 New Ways to Decentralize your Finances and Make Money in the Brave New World.

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WaykiChain

8 min readFeb 13, 2020

Waykichain company has a stable coin called WUSD, but it is more than a stable coin, it is a decentralized bank and it is a part of the waykichain Decentralized Finance (DeFi). A stable coin can be used for payment, but it can also be used for borrowing and lending, leverage, and margin.

The CDP use case for payment and spending

I want to use some money to expand my business, but I don’t want to spend my bitcoin, my ETH or my WICC, because I think their prices may improve over time, and I don’t want to waste my crypto investments. I can simply put these to the CDP bank of waykichain, and borrow WUSD, the stable coin using my crypto assets as collateral. The reason for borrowing a stable coin is that you may not want to sell your crypto assets and you can simply borrow some stable coins and spend them, when you have enough money, you pay them back, and get your crypto back. It is all on the waykichain code, so there is no banker to deal with, nobody to convince to give you a loan, and no hassle, no red tape. It is based on code, based on math, what could be better than that?

The waykichain DeFi is different than other blockchain-based borrowing and lending platforms such as compound, dharma, and dYdX because it is based on the bottom layer of waykichain, as opposed to the other DeFi systems that work on smart contracts. Smart contracts can be manipulated or sometimes even hacked, while the bottom layer code cannot be hacked or manipulated because it is the blockchain code and the blocks are built by the nodes, and anybody trying to hack this blockchain has to hack all the nodes around the world, which is impossible with today’s technology. There are some claims that quantum computing is here and it can hack the blockchain systems, but this is far from the truth because the latest quantum computer by Google has 53 qubits, while any quantum computer to solve and break a blockchain such as bitcoin needs at least 1500 qubits. Even then, you can simply use a blockchain address once, and then you are in the clear because these systems can solve private keys by using your public address and using your public address only once clears you from any hacking danger. Smart contracts, on the other hand, are a different story and this shows you how the bottom layer, the blockchain itself is important when it comes to important things like your wealth, which gets into question in decentralized finance because you are putting up a lot of money for a long time due to collateral use.

2. The CDP use case in exchanges, leverage, margin

A friend of mine has some extra money laying around and he wants to earn some interest and waykichain can help him with that. DeFi is not just borrowing money, but it is also involves lending. Waykichain provides good interest compared to other platforms that provide interest such as banks, binance, etc. and different interest rates provide the chance for spread arbitrage, and anyone can borrow from waykichain and take the money to high-interest countries or institutions. In addition, you can get crypto from other lending institutions that have smaller interest rates and put it into waykichain CDP, get a higher interest rate, and the difference will be pure profit.

In addition to using the WUSD, the stable coin for business and pleasure, you can use WUSD and CDP for leverage, and this has to be carried out by exchanges. Any exchange can use WUSD to offer leverage and margin to their customers and let their customers borrow money. The advantage of waykichain CDP is that it is decentralized, and you do not have to trust any third parties for your borrowing or lending procedures. This is especially useful for people who want to buy the dip in the market but they have little or no fiat money left in their possession.

3. Facebook’s Libra, USDT or WUSD?

The marketing model of Libra is simply centralized, and USDT has the same problem. Libra isn’t out yet people are fighting over large legal battles over it. The reason is simple, IT IS CENTRALIZED. The government can cease and desist your operation anytime, and worst of all, it can simply seize your money. USDT is no different. There has to be trustworthy auditing all the time, and this is against the very soul of decentralization. If someone is controlling your finances, you are not decentralizing and your situation can change any second.

WUSD, on the other hand, is completely decentralized, and you trust code instead of an organization. It is correct the number of nodes is small, but it is getting there. The governance coin coming out, WGRT will help with that effort, and even the interest rate is calculated to encourage decentralization. WUSD is very simple to use, and the block time is 3 seconds, which means your money exchanges hands as fast as possible with the 3200 transactions per second (TPS) value.

This is all very good, I can almost hear you saying, but if I don’t care about any of that and I trust Facebook with my finances!!! Why should I use WUSD over libra, right? Well, Libra is a stable coin like WUSD, but the way Facebook is financing Libra is taking your FIAT, your hard-earned cash, and lending it to others. While you are sending your Libra to others, and while the others are cashing it in, converting to FIAT, Facebook gains interest from your money, and keeps it to Facebook. With WUSD, however, you keep the interest to yourself, and you make money, not Facebook!. That is the beauty of decentralization.

4. How about other decentralized finance platforms?

You can, of course, use more common decentralized finance platforms, but you see, the way to money-making lies in finding the gems that not a lot of people know about. The more popular a way to make money is, the narrower the margin is going to be, meaning it will be tighter and harder to make money from it. Dai is a more popular platform, but as more people know about it, the incentives to use the platforms are less, and the disadvantages are simply ignored by many people. For example, you have to use ETH to pay for gas when getting Dai, while you can use WUSD to get or spend WUSD, you don’t need another token or coin to use it. Dai works based on a smart contract, which is not as safe as the blockchain itself, while WUSD uses the first layer blockchain code. WUSD is faster and uses 3 second block time of waykichain. The Waykichain CDP platform for DeFi addresses the gateway problem (Halaburda, 2018) using a decentralized oracle, so price feeding is harder to manipulate by an entity, you don’t need to trust third parties for your prices.

Also, if you are a risk-taker and want to do margin trading and leverage, feel free to use the CEO GLobal exchange to use WICC leverage for trading. The leverage goes up to 5X of your money. However, this is very risky and you should definitely know what you are doing. Here is the link to the leverage: https://www.ceobi.com/lever?id=wicc_usdt

Waykichain has enabled everyone to have their own decentralized exchange. Anyone can set up a decentralized exchange and start trading their tokens or coins, and they will have high volume because all the exchanges will share the same liquidity. The 2020 projection for the WICC to be locked is 20 million USD, and it looks like the platform is going to surpass that amount. I expect WICC price to increase significantly due to CDP locks, but this is not investment advice and you should do your own research when investing.

5. Using WGRT for decentralized finance and the very near future for DeFi.

WGRT is another coin in the waykichain DeFi platform and you can use it to make money. WGRT has a burn mechanism in CDP, both in liquidation and turning in the WUSD to get the collateral back. The supply of WGRT is high but considering it will continuously be destroyed, it is normal, otherwise, everyone would soon run out of WGRT coins. I personally expect the main reason for the supply decrease to be getting the collateral back by people getting the loan. Liquidation could be another reason but with the bull season coming up, it has a lower probability. As governance coins should be used for governing and not trading, it is understandable if WGRT will not be on a lot of exchanges, but it should be decentralized as well. So, although waykichain company will push for WGRT to be on large exchanges such as Huobi, I do not expect it to be on 60 different exchanges like WICC.

People can use WUSD for all kinds of purposes, but both sides of the coin, the collateral for pledging and the loan you are getting will be spreading their wings, opening up to all kinds of possibilities. In the very near future, I am expecting people to be able to get a loan of gold tokens, euro, real estate tokens, anything that can be tokenized. These can also be used as collateral, especially as real estate has been used by centralized entities for centuries. It is also possible that reputation-based borrowing using blockchain is a possibility where you can build up your credit universally yet retain your privacy. For further information and questions, please join the telegram group: http://wicc.me/turkiye

References

H. Halaburda, “Blockchain revolution without the blockchain?” Commun. ACM, vol. 61, no. 7, pp. 27–29, Jun. 2018.