DeFi Vision for WaykiChain in the days of Corona Virus
In a recent article, waykichain CEO Gordon Gao stated that the focus for waykichain is DeFi and the related ecosystem. Instead of focusing on dAPPs or money transfers, WaykiChain lets you collateralize WICC, BTC, and ETH and receive a stable coin, WUSD. This stable coin can be used in aex.plus exchange and the waykichain decentralized exchange, dex.waykchain.com
People are now able to use their WICC to borrow WUSD, and keep their WICC for bullish times. This helps when the bear market is weighing down all the altcoins, and when people do not want to spend their precious WICC coins for FIAT. Instead, now they can use WUSD in their business or simply spend it. When they return the money, they get their WICC back, which is expected to increase in price. This can be done when the market turned bullish, even making a profit for the people borrowing. Other than that, it can be used for margin in exchanges, and this borrowing mechanism lets people borrow against their collateral, though this is a little different aspect than the DeFi concept known in the ETH chain.
The coronavirus created a low-interest situation because people no longer want to borrow any money. Many businesses are going under, due to everyone staying at home, and nobody borrowing means nobody gaining interest and the banks loaning small amounts only. This is where digital currencies and DeFi shines because you can simply borrow and lend to anyone in the World, you are not simply stuck in your region.
People in the ETH ecosystem are mainly interested in lending money to gain interest and WaykiChain will soon give people that capacity. These days banks are paying zero interest to lenders, so even paying a small percentage of interest to lenders could be interesting. A very good example of this is Japan, which has been paying negative interest to people for a long time, to stimulate spending and inflation. People are very savings oriented, which makes it hard for any business to create profit. This negative interest pressure by the government directed people to use cash. Because it is hard to keep large amounts of cash at home, many have directed their savings toward digital currencies. This is where WaykiChain DeFi comes in handy. People in Europe or Japan or any region where there are low-interest rates can lend money to others using WaykiChain decentralized CDP system. You can lend or borrow using waykitimes, a small footprint app, and get over any national interest trap. Anyone can even use arbitrage, and borrow from a low-interest bank, country, or region, and lend to others using the waykichain system. The opposite is true also, you can simply borrow from waykichain, and lend the money to high-interest banks, countries, or regions.
One good direction waykichain going is insurance, and now you can insure your CDP again liquidation. If the market goes down very rapidly, you carry the danger of being liquidated. With the new insurance system of waykichain, even the liquidation is not an obstacle, because it covers the total WICC coins you used as collateral.
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