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February 16, 2023

DeFi 2.0: How Will RebusChain Contribute?

The blockchain industry is constantly evolving and is undergoing some of its most significant changes. With a growing focus on advancing decentralized finance and security, many projects are now contributing to the dawn of DeFi 2.0.

As part of this movement, we are excited to be at the forefront of this evolution.

Before we dive into how RebusChain contributes to the evolution of DeFi, let’s take a moment to understand as much as possible about the future of DeFi and what DeFi 2.0 is.

What is DeFi 2.0?

DeFi 2.0 is a relatively new term that refers to the latest wave of DeFi projects built on the foundations established by the first wave of DeFi. The first wave of DeFi brought different financial services to the masses without intermediaries such as banks or other financial institutions.

source:cointelegraph.com

While DeFi was revolutionary in its time, it still faces several challenges it struggles to overcome.

DeFi 2.0 aims to address these bottlenecks by creating a new generation of protocols that are more flexible, user-centered, scalable, and secure protocols. These protocols use new tools and building blocks to improve user experience and take DeFi to the next level.

With DeFi 2.0, we can expect greater interoperability, more advanced financial instruments, better automation, and enhanced security. Overall, DeFi 2.0 aims to democratize finance without compromising on risk and to bring significant improvements to user experience.

How DeFi 2.0 Improves the Industry

DeFi 2.0 represents a new era of revolutionary DeFi protocols that seek to address the limitations of earlier generations. Implementing fresh ideas and solutions promises to advance the DeFi industry and offer customers exciting tools to achieve financial freedom.

The Ethereum blockchain has been the primary platform for DeFi solutions, but scalability and user interface problems have been significant barriers for users, especially beginners, due to the complexity of model structures.

High gas fees and long transaction wait times have deterred many users from using DeFi platforms. However, DeFi 2.0 aims to address Ethereum’s scaling concerns and implement the necessary infrastructure to enhance user experience.

A lack of liquidity solutions has been another significant obstacle facing the DeFi space, with many assets being underutilized and immobile. While the Automated Market Maker (AMM) model provides access to working capital, it is inefficient due to liquidity being unable to concentrate. In contrast, DeFi 2.0 allows deposited funds to be fully utilized, promoting a healthy cash flow that can efficiently support and sustain projects.

How RebusChain will contribute to DeFi 2.0

RebusChain exists to take DeFi mainstream by creating a much-needed bridge between the DeFi and TradFi sectors. In other words, we aim to provide easy access to DeFi instruments to TradFi institutions (Banks, Asset Managers, etc.), who can then offer these financial products to their clients and investors.

Here is how it works.

RebusChain connects DeFi to TradFi through the on-chain Rebus Vault and Off-chain Rebus Investment Platform.

RebusChain is an IBC, ICA, and EVM-compactible chain. This makes it an interoperable (can communicate and exchange data with all IBC and EVM-enabled networks) and scalable solution. This way, developers (Platform partners) can build their DeFi 2.0 products on RebusChain without hassle.

TradFi institutions (Financial Partners), on the other hand, can then offer those products to their investors and clients, in familiar ways, without having to worry about extensive blockchain education.

Read more here.

What the future of DeFi holds

While many experts generally agree that DeFi will eventually see mass adoption, some uncertainty still exists about when this will happen. The current state of DeFi is far from perfect and has several flaws that must be addressed before billions of people can use it.

To facilitate DeFi mass adoption, we need to create easy-to-use dApps with intuitive interfaces and improve the security of protocols to protect users from malicious activities. Additionally, DeFi 2.0 aims to address centralization issues and be interoperable.

While we all hope to achieve DeFi mass adoption, the question remains whether we are willing to contribute to the industry’s growth and address its challenges.

At RebusChain, we are committed to creating an ecosystem of safe, practical, and improved DeFi products and bringing in fresh liquidity from everyday investors. In other words, we aim to be the bridge between DeFi and TradFi.

Learn more about Rebus

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