Another New Project named easyfi is getting listed on WazirX. The trading competition starts on 28th of Jan, 2020 up to 30th Jan, 2020, where the highest traders can win prizes worth $15,000.
Let’s get a more detailed summary of easyfi and its utilities. I have used the Whitepaper of the project as a reference to this article and I hope this would help clarify most of your doubts about this project.
Basic Idea of EasyFi
EasyFi is a decentralized system for the frictionless borrowing of digital assets on layer 2 networks to tackle the shortcomings of existing systems, making money markets more efficient and creating higher yield-bearing opportunities.
Currently, most digital assets are mispriced and they carry high volatility over a longer time frame. Hence, holding digital assets with depleting principal value is often demotivating. Therefore, users seek new incentives and frameworks to offset the losses and cope up with higher transaction costs and complexity.
EasyFi is a universal layer 2 lending protocol built for Defi focused on scalability, composability, and adoption. It was built as an open network infrastructure to run on public networks to facilitate end-to-end lending and borrowing of digital assets and related financial products.
The network design is ethereum compatible and blockchain agnostic allowing instant settlement of assets over different blockchain networks while retaining custody with the asset owner’s network. The cross-chain framework allows lending and borrowing across a spectrum of global markets including private platforms and permissionless public networks. The network is secured by proof of stake mechanism, governed through participating voters to achieve consensus among network participants.
Existing Problems for the ecosystem
- High Cost & Slow speed of Transactions
The incumbent ethereum network is a vast ecosystem that offers resources and eases to build. But it comes at a cost which is increasing by the day. High gas fees or transaction costs are a huge barrier to mass adoption and scalability. Latency, low throughput, higher block completion time makes network accessibility difficult.
- High collateralization ratio
Currently, most DeFi users need to lock 150-200% of assets to avail loans which are predominantly used for trading and accessing leverage across different protocols. While it adds to the cost of a loan, it also presents a great barrier to market expansion.
You can read more by downloading the Whitepaper using this link
Summary of EasyFi UseCases
EasyFi native token ‘EASY’ will be used for the following key functions:
Governance: $EASY token will enable users to be able to play part in the protocol’s governance as EasyFi is going to become a DAO and enable the community to control various governance decisions w.r.t. Running the protocol.
Protocol Incentivization: will enable users to earn rewards from time to time and provide them with
voting rights in the upkeep of the protocol and continuous development.
Staking rewards: $EASY token will enable various projects to launch their lending and borrowing markets on the EasyFi network hence will enable them to reward the users to stake $EASY tokens for earning rewards in form of tokens of the respective markets and interact with corresponding markets on the protocol.
Cross market interaction: EasyFi is the first protocol in the DeFi space to enable dual token farming, hence enabling various markets being launched on EASYFI to be able to incentivize EASYFi users to interact with those respective markets.
Cross Chain Settlement: $EASY tokens will be used as a cross-chain settlement instrument in the various bridges created to communicate and share the liquidity with various other sidechain and main chains being built over a period of time like Binance Smart Chain, Polkadot, etc.
- Download the WazirX app or visit the website. Then hit the Sign Up button
- Fill in your email address (one that you use frequently), and your desired password
- Click on the Terms of Service checkbox, but go through it once before checking
- Then press the Sign Up button
- You will be sent a verification email after hitting the sign-up button. If you have received it, click on Verify Email to complete the process. If you haven’t, check your spam folder. Or hit Resend Here.