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Relite Finance Is Redefining Crypto Money Markets

·4 min read

One of the biggest problems in the crypto space is the lack of true interoperable solutions. With the explosion of decentralized finance, more and more users are seeking simple ways to access the market without the current downsides, which include lengthy delays in transactions being confirmed, high transaction fees, and increasing complexity.

That’s why Relite has stepped in to create a multi-chain, interoperable system where segregation of blockchains is overcome. In the current landscape, users are often restricted to assets that are native to the Ethereum blockchain, which naturally shuts out a large portion of potential investors because of the high transaction fees.

To achieve full interoperability, Relite Finance is building on top of the Polkadot ecosystem. Relite believes that Polkadot is the best bet against chain maximalism with the added benefit of being able to quickly utilize any existing contracts they already have already on Solidity, an object-oriented, high-level language for implementing smart contracts.

Taking On DeFi’s Biggest Problems

Relite has taken aim at three massive problems in the DeFi space. Interoperability, sustainability, and simplicity. On the side of interoperability, the use of the Polkadot network allows Relite to take an easy path to deploy Solidity contracts to Polkadot. They also use what are called Polkadot bridges, which enable chains to interact with each other whilst maintaining their technical sovereignty, accessing tokens like ETH, DOT, ERC20s, and other major blockchain assets through one simple integration.

On the sustainability end of the spectrum, Relite is tackling the issue of high transaction fees. Small DeFi users are often priced out of the market because making a small trade doesn’t justify a fee that’s half as big or bigger than the trade itself, which is something that often happens on Ethereum. Another barrier to entry for users is the double collateralizing often required when accessing loans. Again, as with high gas fees, this goes against the main principles and vision of DeFi in terms of making financial services more accessible. 

Relite addresses this in a number of ways including de-risking the protocol with a special Reserve Fund, offering more rewards when more capital is staked in the Reserve Fund via a variety of pools that have fixed terms and non-fixed terms. These comprise a broad variety of tokens, and by of course using the power of the Polkadot network, which includes high throughput and low transaction fees.

Keeping It Simple

None of what Relite is doing would be useful to DeFi users if its solutions were difficult to access. That’s why Relite is putting such a big focus on simplicity. Using the platform, users will be able to lend, borrow, and earn passive income by staking the RELI token, and hedge against market volatility by acquiring stable value coins without losing the future upside of the deposited crypto.

In just a few clicks, users can unlock a plethora of services. The Relite Web App interface is accessible for all users, from novice to advanced, and they can easily deposit assets to supply liquidity or provide collateral to access a loan.

Reshaping The Future Of DeFi

Headed by founder George Groshkov, Relite is on track to change the game in DeFi. Groshkov cites his inspiration to create Relite as stemming from much more than just financial gains, but giving fair access to financial products to those who need it. 

In a recent interview, Groshkov said “We researched why UX in DeFi is bad. And what can be improved? We saw massive fees (with the ETH spike), over-the-top collateral, no variety of pool terms, and there was no real approach to interoperability — the latter one which we believe will be the game-changer not only for DeFi but the whole fintech space.”  

There’s no doubt that users need easier access to financial products and services, and given the direction Relite is taking, it has the potential to redefine what’s possible for users in money markets throughout the DeFi space.

Disclaimer: This article is educational and does not represent financial advice. Please consult your financial advisor before purchasing any digital assets. 
 

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