WaykiChain, One-Stop Decentralized Finance Platform
In my previous article, I explained the ways a defi project can work with government bonds or treasury services. As decentralized platforms, including waykichain aims to provide all banking services such as lending and borrowing, business loans, checking accounts, savings accounts, debit and credit cards, merchant services, credit card processing, check collection, payroll services, deposit services, and treasury bonds, they aim to be a one-stop-shop of all these. Banks have been around for centuries, and decentralized blockchain companies are trying this despite the banks trying to prevent them from taking over.
One of the services, the bread-and-butter of DeFi projects is lending and borrowing. Most defi projects today have been using yield farming to gather users. For example, Balancer with its governance coin BAL is giving a bonus of BAL to people who borrow and lend money, the same thing as Compound with its coin COMP. Let's call the farmer Bob. Bob borrows some crypto, and because both borrowing and lending gains bonus tokens, he earns some BAL. When he brings back the coins he borrowed, he will have to pay interest, but because the bonus he received has more value than the interest he is going to pay, he is already on the plus side, the profit side. This is because the governance coin given as a bonus has a high value in the market due to popularity. As more people use the defi platform, it becomes more popular and more valuable. As it becomes more valuable, more people want to do farming on that. Bob takes the crypto he borrowed and brings it back to lend to the same platform. As Bob is lending what he borrowed, he receives yet another large bonus as he is lending crypto. This time, he will also earn some interest from the crypto he lends. This becomes an endless cycle of earning, so that is why it is called farming. This is what waykichain needs, a way to let people earn money from the platform. This will entice more people to join and become users. As more people hear that others are making money, they will join, lend, and borrow.
Credit card and debit card is another banking service and it is very important for a blockchain service. The next article will be on them, be sure to watch this medium blog.
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