The growing popularity of decentralized finance has given rise to many innovative products and services. Despite the growth, there are still many options to be explored. Solving real-world problems is seemingly a big struggle for the majority of projects.
DeFi And Real-World Use Cases
Through decentralized finance, consumers and companies can achieve a great deal. Ranging from lending and borrowing to yield farming and acquiring insurance, developers aim to prominently tackle every aspect of finance. Although this approach has created an industry well worth over $100 billion today, there are still many questions surrounding this industry. Rather than solving real-world problems, decentralized finance primarily focuses on existing cryptocurrency enthusiasts rather than those who need access to new products and services.
Changing that narrative will require a different approach and out-of-the-box thinking. Currently, DeFi revolves around making money with digital assets. However, it is impossible for digital asset holders to fund or make impactful investments related to real-world transactions. It is crucial to bridge the gap between the digital asset industry and the real world as quickly as possible.
By building the necessary infrastructure, the future may look very different. Small and medium-sized businesses often find themselves in need of financial resources. Finding those resources can prove very difficult, which is where the decentralized finance industry can play a role of importance.
What ShuttleOne Is Building
Speaking of that infrastructure, ShuttleOne is bridging the SME segment with decentralized finance resources. As an operating financial system enabling users to utilize platform data, the door is opened for platforms to provide their own financial services under the ShuttleOne umbrella.The option to extend such financial services to customers creates a more compelling ecosystem and ensures customers don’t have to look elsewhere.
Keeping that in mind, the economic potential of ShuttleOne becomes more outspoken. Any investor lending liquidity to this protocol will be exposed to the potential of having major companies launching their own financial services. By accessing existing ecosystems and its users and providing an innovative “financial bridge”, ShutterOnline can grow its user base exponentially.
Secondly, giving clients the option to acquire working capital by using existing real-world assets can make the difference between sustaining a business or going bankrupt. The ShuttleOne team intends to create a decentralized liquidity fund for real-world finance. Its liquidity pool is funded through stablecoins from various suppliers and will finance real-world financial services, including remittances and cross-border loans.
As a non-custodial solution, the funds will be stored in smart contracts no one has administrator keys for. A trustless ecosystem is essential when dealing with vast amounts of funds and liquidity. To date, this approach has helped thousands of merchants secure business capital across popular segments, including e-commerce, agriculture, and others. Compared to other DeFi solutions, ShuttleOne presents itself as a Governments to Business (G2B) solution.
Leveraging blockchain technology allows for the creation of a transparent ledger for tokenized assets. Participants can access all assets and their associated documentation safely. More importantly, with ShuttleOne's real-world asset protocol (RWAP), there will be no double collateralization for assets with an outstanding loan.
This project's approach has attracted various equity investors, including cryptocurrency service providers and DeFi entities. Support by MakerDAO, Andromeda Capital, Coinshares, and various angel investors confirms the need for SME-oriented services involving DeFi liquidity. The struggles associated with working capital remains ever-present, and any attempt to improve upon that situation can bring positive attention to the DeFi ecosystem.
Blockchain technology can unlock many use cases, products, and services pertaining to decentralized finance. Allowing users to tokenize real-world assets and turn them into working capital for SMEs alleviates some of the struggles these small businesses face regularly. Additionally, the support for stablecoins - crypto assets that cannot deviate from their fixed value - provides peace of mind to all participants. Holders of stablecoins are also able to provide liquidity to the pools to generate interest.
The quest to bring decentralized finance to the real world is a challenging one. ShuttleOne explores a market segment that has nearly no competition today, even though financial business requiring capital is one of the more pressing real-world use cases one can think of. This approach highlights the potential and versatility of Defi resources, which would otherwise remain inaccessible to merchants.