DeFi symbolizes the start of a new era where finance is no longer fully dependent on banking institutions. This turning point came with the realization that the current system is highly inefficient and lacks the adaptability to the rapid pace of technological advancement. Now, with the arrival of blockchain, the entire purpose of financial institutions is subject to reconsideration. As a part of the new decentralized ecosystem, they are no longer mere providers of service – but rather, they become new drivers of progress that take society to the new edge of openness, trust and transparency.
However, at the moment DeFi in itself is rather disharmonized. Decentralized applications do not necessarily possess integrity and provide a smooth transition – rather, they all function as entities independent from one another. This may complicate the matter, as it points out to the relative weakness of DeFi compared to the current financial system. Traditionally, banks and online payment systems use a bundle of adjacent applications to deliver the best solution - let’s only take an example of Trustly, an online payment method that allows making instant top-ups in combination with PayPal. If it wasn’t this solution, the transaction would risk to take enormously long, which naturally would cause a lot of unpleasant feelings if the transfer is expected immediately.
For this, PlutusDeFi was one of the first one to come up with a solution of bundling multiple DeFi services together. By acting as an intermediary connector, it bridges the gap between the largest lending protocols in DeFi, such as Kava and Compound, and dYdX, connecting them with a number of trusted wallets (e.g. Trust Wallet and MetaMask) and giving multiple options of cryptocurrency to choose from. This allows creating an ecosystem where consumers are capable of selecting the lending protocol which works best for their needs, while also deciding on the most suitable wallet and cryptocurrency – all in one app.
This is a picturesque demonstration of how the whole mechanism works.
How PlutusDeFi Can Be a New-Era Solution of DeFi
PlutusDeFi is focused on giving access to money services to the whole world, especially in areas where banking opportunities are limited. Thus, for citizens of Africa, the country with the unstable political and economic climate, the platform opens up a possibility of depositing the money through the use of a text message. This is an innovative feature PlutusDeFi brought through building connections with local telco operators in South Africa. M-pesa, Lipisha as well as Vodacom, one of the largest companies listed on Johannesburg Stock Exchange, are all taking part in this partnership.
In the coming future, the platform plans to expand its service offerings from lending to embrace insurance and privacy integration, and for that it cooperates with London-based Nexus Mutual and Aztec Protocol. This synergy between lending, banking, insurance and derivatives, with added layer of privacy on top, lead PlutusDeFi to be an application distinguished from many other projects in a DeFi space.
This could explain why PlutusDeFi has already engaged so many investors and academics. Roger Lim, a partner in NGC Venture fund, sees it as a backbone of the future financial system, what makes PlutusDeFi a great addition to their company’s portfolio. From the academic front, Plutus already won the support of two distinguished figures – Paolo Tusca, an Executive Director of the UCL Centre for Blockchain Technologies at University College London, and George Samman, a former Wall Street portfolio manager and the author of a recognized work “Banking Beyond Banks and Money: Guide to Banking Services in the Twenty-First Century”. Altogether, they join the circle of prominent investors which already includes Danish Choudhury, CEO of Bitcoin.com Exchange, Eric Benz, CEO of Changelly, Thibaut Denonain, Head of Trading at Goldbaum & Partners, and Sean Klingosum, the Managing Partner at Torchlight Ventures, in addition to investment firms Nabais Capital and Ethereal Capital.
100% Value Captured From Token Sales
Unlike other platforms, PlutusDeFi doesn’t build value on fee elimination or decentralized online transfers. Rather, it helps to connect dots with other dApps and this way, arrives with a unique aggregate platform that has a purpose to simplify user experience. By focusing on features of design, privacy and anonymity, this model of value generation allows PlutusDeFi to capitalize on users who simply hold a stake in their platform.
So far, PlutusDeFi runs a fundraising campaign to collect the last $150k splitting it from a $1 million milestone, and its value is growing exponentially with each day. Afterwards, it plans to initiate the next round of DEX tokens bonding curve listing as well as secure its spot on Uniswap.
How Do The Token Sales Usually Happen?
PlutusDeFi uses a special scheme called bridge-bonding curve model, which was first tried out by LTO Network. While imposing higher fees at the start of a selling round, it makes investors keep their money for a longer period without dropping out of their token position. In essence, this method helps to build the value of tokens more effectively when burning them – which in the first months reaches up to 55%. Bonding curve mechanism helps to ensure more stability of the token supply in the long-term and results in higher accumulated gains, as compared to the model with no bridge.
Scenario A: Circulating Supply (with Bridge Fees)
Scenario B: Circulating Supply (Without Bridge Fees)
This model of token allocation is especially beneficial for companies with a small market cap, the like of which PlutusDeFi is. At the end of the day, however, the ownership of tokens is expected to shift to the corporate side, leading to the reduction in the number of tokens left in free circulation. This way, PlutusDeFi has the potential to attract more corporate players into the game, erasing the boundaries between the real world and the world of DeFi.