Banks, being integral to the traditional financial system and society, have operated with certain inefficiencies, lack of transparency, and vulnerabilities associated with multiple points of failure. These aspects have been observed in various instances throughout history. After the 2008 economic crisis, there was a vision to create a global permission-less financial system independent of banks. That vision took the shape of Bitcoin, which introduced decentralization to the world.
Bitcoin paved the way for Decentralized Finance (DeFi), a movement aimed at establishing a global, permissionless, decentralized, and autonomous financial system. DeFi operates independently of traditional finance (TradFi), leveraging the efficiency and innovation of blockchain technology.
DeFi Today – Alternative to TradFi with Shortcomings
DeFi, hailed as the future of finance, has strayed from its original vision of replacing traditional banking. Many DeFi protocols prioritize short-term wealth creation and unsustainable incentives without addressing real-world issues or fostering meaningful connections. Operating in a closed economy, they offer a complex user experience that hampers effective utilization. Let’s review them briefly to understand the issue at hand and possible solutions.
1. User Experience
The user experience in DeFi can be complicated at times. From long wait times for transaction confirmation to managing complex wallet addresses and seed phrases to bridging fiat to crypto across multiple chains, navigating DeFi protocols can be challenging. The user interface is often geared towards tech savvy people, making it difficult for the majority of average users worldwide. Consider this, the traditional stock market industry is leveraging mobile apps to expand their reach and they are doing it successfully considering there are 5-6 billion mobile users. In DeFi though, there aren’t many dapps or protocols that come with a native mobile application.
Another significant concern regarding the user experience in DeFi is the burden of high transaction fees incurred for on-chain transactions in a blockchain network’s native crypto token. This exposes users to price volatility of such publicly traded tokens, even when transacting with stablecoins on that chain. The Ethereum network is a classic example of that today.
High and unpredictable gas fees along with long wait time for transaction confirmations is down to the eternal problem of public blockchains that were not conceptualized to be scalable. Blockchain pioneers like Bitcoin and Ethereum were more focused on decentralization and security so middlemen don’t get the opportunity to abuse user/customer data and resources. Ethereum’s innovation of EVM and smart contracts rapidly increased the use cases of blockchain technology which is now forcing the industry to innovate and solve the scalability trilemma.
2. Real World Utility and Connections
Many DeFi protocols lack essential banking services like loans (other than crypto loans), secure savings accounts, and insurance, thus operating within a closed economy lacking in meaningful connections to the real world. This limitation significantly hampers the sustainability and scalability of the DeFi space, rendering it unsuitable for replacing traditional banks, at least, at this time.
Xade – Bringing the Best of Both TradFi and DeFi
Xade aims to be the DeFi-powered solution that bridges the gap between traditional banks and DeFi protocols. It offers a hybrid approach via a mobile application and on-chain banking services. Powered by their in-house DeFi protocols, Xade strives to deliver a user experience so seamless that it resembles a digital bank. According to Xade Finance, their platform is designed to be user-friendly to the extent that “your grandma can use it without even realizing that they’ve entered the world of DeFi”.
The primary hurdle impeding the widespread adoption of DeFi lies in the user experience and the disconnection from the real world as noted above. Xade aims to revolutionize the space by bridging the gap between DeFi and real-world applications, all while upholding the core tenets of decentralization and non-custodial principle. As an aspiring alternative to traditional banking, Xade wants to empower individuals to embrace decentralization by providing a user-friendly interface and demonstrating how it can significantly enhance their daily lives.
Why Xade Chose to Partner with Shardeum?
Since Xade Finance wants to solve the 2 major problems in DeFi today – UX and real world utilities – they felt Shardeum is the perfect layer 1 solution for them considering the smart contract platform scales linearly, and hence, infinitely with low/constant transaction fees while maintaining high levels of decentralization and security. They are excited to see a Web3 platform finally solving the scalability trilemma at the protocol level which would enable a ton of dapps building on it to focus on their products and services for end users instead of worrying about bad UX, network congestion and rising gas fees.
What Can You Do with the Xade Mobile Application?
- Create your own non custodial wallet along with your social media accounts or connect/import your existing wallet
- Add multiple layers of security such as passcodes, pins, face ID detection and more
- Deposit funds from 10+ fiat ramps, Xade P2P, or from your existing wallet
- Send payments to any email address, decentralized identities, mobile numbers etc. irrespective of whether the recipient has a wallet or not
- Send payments in fiat backed stablecoins such as USDT in a gasless manner
- Get a savings account created specifically to beat inflation by financing real world loans
- Speculate on prices of stocks, crypto, commodities, forex and more with 10x leverage and high levels of liquidity and security
and soon you can…
- Get a card to spend anywhere from the world
- Pay your bills and spend across 5k+ ecommerce brands all through your Xade app
– all while earning potential rewards in the form of Xade tokens and getting push notifications for your transactions.
How does Xade Work?
Xade is powered by their in-house DeFi protocols which are created specifically to replicate real world banking services in a sustainable and efficient way. Following are their DeFi protocols in a nutshell
The RemmiteX Protocol aims to drive seamless payments within Xade, enabling users to send payments globally and instantly via multiple stablecoins backed by fiat currencies. With fiat ramps in place, users can transact using mobile numbers, for instance, eliminating the need to navigate complex addresses and seed phrases. Additionally, the platform boasts near-zero transaction fees, enhancing the overall experience of the payment process
The SabeX Protocol aims to empower the money markets within Xade, enabling depositors to earn a stable savings yield designed to exceed the regional inflation rate. Borrowers, on the other hand, can access secured loans against a range of tokenized assets, including bonded or RWAs tokens, utilizing Xade’s unique fixed rate model. This robust framework can go a long way in ensuring efficient capital utilization and foster a thriving ecosystem of lending and borrowing within Xade.
The DeriveX Protocol aims to serve as the driving force behind derivatives trading on Xade, enabling users to engage in perpetual futures trading for over 5000 assets, ranging from stocks and cryptocurrencies to forex and more. With the ability to leverage up to 10x, you can engage in short selling, benefit from nearly zero fees, and enjoy instant settlements to maximize capital efficiency. This comprehensive offering empowers traders to access diverse markets and optimize their trading strategies within the Xade ecosystem.
Roadmap of Xade Finance
Register for Xade’s Mobile App & Join Their Community
Xade Mobile App: https://bit.ly/xadefinance
Xade Web App beta: www.xade.finance
Join Xade Community: https://discord.gg/2mHmrzGU
In no event shall Shardeum Foundation, “licensor,” its associates, its employees, its contractors, its board members, and its partners be liable for any special, direct, indirect, incidental, exemplary, or consequential damages, expenses, lost profits, lost savings, business interruption, lost information, or any other damages arising out of the use or inability to use the Shardeum blockchain, its layer one technology, its derived or compiled software, or its source code, even if such party has been advised of the possibility of such damages and notwithstanding the failure of essential purpose of any remedy. In no event shall the licensor be liable under any theory of liability, whether in an equitable, legal, or common law action arising hereunder for contract, strict liability, indemnity, tort (including negligence), or otherwise, for damages which exceed $1,000 and notwithstanding the failure of essential purpose of any remedy.
Last Updated on October 25, 2023