March 4, 2021

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EasyFi Guide: DeFi Lending Protocol for Digital Assets

6 min read

EasyFi Guide: DeFi Lending Protocol for Digital Assets

EasyFi’s is growing in popularity alongside Decentralized Finance (DeFi). As its name suggests, EasyFi was created to improve existing DeFi capabilities, with the goal of making it much easier to operate in the world of DeFi.

With that vision, the EasyFi protocol has been built and introduced as a new universal crypto lending platform based on the existing DeFi ecosystem.

By constructing a Layer 2 Blockchain network using smart contracts, EasyFi is working to provide solutions for DeFi’s speed and cost challenges, and to enhance the scalability and integration with faster, cheaper tools.

EasyFi team’s hard work has paid off with a range of noticeable achievements:

  • Became the 1st DeFi lending protocol on a Layer 2 Matic Network to successfully integrate with Chainlink Price Oracles, Credit rating system, and On-chain Digital Identity Management system
  • Total Value Locked reached $40 million USD within 48 hours after being launched
  • Listed on a number of major exchanges, including Binance, BitMax, HotBit, and Probit
  • Attracted a global community of approximately 13,000 members and is expanding

About EasyFi

The EasyFi App
The EasyFi App

Blockchain agnostic

EasyFi is designed on a Layer 2 Blockchain on Matic Network, which has the ability to connect and interact with numerous other networks. It is open to working with just about any DeFi platform, which is great from a user’s perspective.

Ethereum compatibility & interoperability

To achieve the goal of strengthening the DeFi ecosystem, EasyFi’s core is based on Ethereum and utilizes its well-known advantages like smart contracts, while also compatible with the agnostic mechanism that enables cross-chain communication.

Staking & governance

EasyFi is working to build a DAO-like governance protocol. Through its native token $EASY, the platform grants its users the right to participate in voting for network decisions at multiple levels and get rewards for their contributions. Thanks to that, users are incentivized to join and remain with the system.

EasyFi Features

Basically, EasyFi is designed to provide inclusive financial infrastructure and services for DeFi, focusing on digital assets and token lending and borrowing. Particular core products and features of EasyFi can be summarized easily.

EasyFi Guide: DeFi Lending Protocol for Digital Assets

Micro-Lending services

At the moment, people still hesitate to lend their funds through crypto platforms as blockchain in general and DeFi in specific are still unable to eliminate credit risks or non-repayment. As a global market, these issues need to be addressed.

With EasyFi, those risks are split and minimized, as more lenders join together to make a loan so the actual value is smaller on a per-lender basis. This mechanism will likely encourage lending activities and boost the circulation of DeFi lending options.

Under-collateralized loans

The lack of a reliable credit scoring system is an obstacle for DeFi and drives potential lenders away. It seems understandable if you look at the nature of blockchain, where data is not always accessible to every user.

EasyFi resolves this issue by adapting Koinfox TrustScore to evaluate borrowers’ credibility, thanks to which depositors can tell who has a clearer payment record and reduce the possibility of bad debts.

As a result, qualified borrowers are given a higher chance to receive an under-collateralized loan, with little or no collateral required.

Credit delegation

To cut out unnecessary middlemen that drive up the time and cost of lending, EasyFi created its unique “Know Your Borrower” credit delegation. This protocol allows lenders and borrowers to enter a direct agreement for lending capital.

The agreement states all clauses and terms regarding the loan amount, interest rate, term, and covenant, and is stored on-chain as immutable evidence for the loan. The TrustScore is used as a basis for this agreement.

Other smart financial products

Thanks to the use of smart contracts, EasyFi can further develop and integrate a variety of advanced functions such as Credit Default Swaps that offers fund hedging, insurance, and speculation.

With these derivative instruments, investors can optimize their options to minimize credit risks or offset risks with other users, while increasing control over their portfolios.

EasyFi Token

In addition to facilitating digital lending activities, EasyFi has similar operations just like other DEXs, including a crypto exchange, mining options, staking, and so on.

The platform issues $EASY, a utility token, which is used to activate governance voting, protocol incentivization, staking rewards as well as cross-chain interaction and settlement.

EasyFi Guide: DeFi Lending Protocol for Digital Assets

The token can be traded and may become a store of value in its own right.

The role of $EASY token is simple to understand:

Governance

EasyFi follows a DAO model, in which network users can make use of the utility token to express themselves regarding any decisions, including Stake weighted voting (where the number of staked tokens is decided) and Event determination (to gather opinions for any important events from interest rate to collateral terms and so on).

Staking rewards and incentives

EasyFi’s users will receive rewards for participating in any activities on the platform, from staking tokens to lending, borrowing, and voting.

Dual Yield Farming

Since EasyFi is one first DeFi platform that allows dual token farming, it is possible for multiple markets to be launched on EasyFi and encouraging EasyFi users’ interaction. It also increases the liquidity among various markets and the sustainability for future expansion.

Cross-chain settlement

$EASY token will act as a bridge connecting various chains, for instance, Binance Smart Chain or Polkadot, and maintaining the continual communication among those chains.

EasyFi’s Core Value Proposition

With all the above-mentioned features that EasyFi offers, the platform is creating its own ecosystem with inclusive digital financial services for every investor.

Despite a relatively short track record, EasyFi has shown competitiveness against other similar platforms, such as Aave and Compound.

EasyFi can help individual investors to access the crypto debt markets while giving larger investors more options to launch lending activities in the DeFi space and also assess the creditworthiness of potential borrowers.

Low-Cost Transactions

Thanks to its Micro-Lending mechanism, TrustScore identity protocol and Credit Delegation, EasyFi empowers lenders with information, and will likely help them to create better returns on their lending activities.

Real World Integration

EasyFi maximizes the power of DeFi smart contracts to deploy financial offerings in combination with new initiatives to expand the scale of accessible markets and capital. Based on that, the site can satisfy orders made by users and work to solve scalability and interoperability issues across multiple chains.

Deep Liquidity Pool

Originally forked from Compound, EasyFi has gone its own path for building on a layer 2 blockchain on Matic Network. It sees strength in the Plasma Blockchain, and in addition to speed and cost-efficiency, it’s still able to take advantage of the Ethereum mainchain’s deep liquidity pool.

EasyFi’s Roadmap

After successfully launching on Matic, EasyFi will continue working to update other features and keep integrating/expanding to other networks. With more tools to come in very early 2021, EasyFi’s users can expect to see further growth on the platform.

For anyone who wants to get the latest information in terms of the project’s schedule, you can visit EasyFi’s main website or its accounts on Twitter, Telegram, or Medium.

With continued interest in DeFi growing, EasyFi appears to be well placed to help disparate DeFi platforms connect.

Given the fact that credit in the established financial system is only available to a very limited market, it would seem reasonable that more lenders and borrowers would look for options in the DeFi ecosystem.

The post EasyFi Guide: DeFi Lending Protocol for Digital Assets appeared first on Blockonomi.

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