When FinTech Met DeFi 当金融技术遇到去中心化金融时
What are the possibilities for financial control when FinTech & DeFi come together? Find out here. 当金融技术和分散金融融为一体时，进行财务控制的可能性是什么?
The biggest financial news in recent weeks is the IPO of Ant Group — it was to be the largest IPO in the history of all IPOs (until it was suspended on November 2, 2020).
The FinTech group is known for its Alipay mobile wallet app that handles payments. However, it aims to be a one-stop digital financial hub that also provides users access to investing, insurance services, and wealth managment with the use of financial technology and cloud services.
The expansion of financial technology services by the Ant Group is an indication of the growth and acceptance of FinTech worldwide.
Despite the growing global use of financial technology, there are questions of the security and privacy of personal data stored on cloud servers, as well as the transparency of transactions to prevent counterfeit or fraud.
What is FinTech
FinTech is the use of innovative technology to improve the delivery of financial services.
Current FinTech uses include the wireless transfer or remittance of funds, lending and borrowing of money without going through a financial intermediary, financial insurance products, and cryptocurrency investment and trading.
One good example of FinTech are lending apps, such as the Plutus lending app. It allows users to easily invest or borrow funds on its FinTech platform, and earn more competitive interest than traditional savings. In fact, just by depositing funds & keeping them on the app, users can earn 1% interest each month.
In some ways, FinTech aims to disrupt the current distribution and infrastructure models that traditional financial services operate on.
What is DeFi
FinTech transactions still require personal data such as telephone numbers and a password for setting up accounts. These personal information is stored on a cloud server, which is susceptible to hacks or other security breaches. One such example is the recent data breach faced by online retail platform, Lazada.
One way to manage these challenges is with Decentralised Finance, which is the opposite of centralised finance.
For the latter, a financial institution has the final say on how investments, trading, and loans are done. Many users have difficulties accessing financial services provided by traditional financial insitutions due to requirements such as high value collateral, loan limits, high loan interest rates, and border restrictions.
In DeFi, there are many apps running on blockchain technology. This distributes decisions among the users of the dApps, providing a peer-to-peer financial system. Users decide between themselves on financial matters such as what can be accepted as collateral and its value, how small or large a loan can be, loan interest rates and repayment periods, and more.
This peer-to-peer system enables more people access to financial services that they otherwise may not have access to.
The blockchain technology that dApps use help ensure that all transactions are immutable and transparent. This greatly reduces the incidence of fraud or counterfeit since transactions can be tracked to who made them, when they were made, and how much.
Blockchain technology also makes it harder to hack for user information or account access. Users need to provide a key to the people authorised to access their information or account. Only those with the correct key are able to view detailed information or process transactions.
A feature of DeFi is cryptocurrency, which is digital currency secured by cryptography. This makes the digital currency nearly impossible to counterfeit or double-spend.
As the volatility of the cryptocurrency is determined by demand and supply of peers, and are not affected by other economic factors that traditional currencies are susceptible to.
This allows more people to easily start trading in cryptocurrencies without the need of a huge initial capital, and they have total control over their investment decisions.
Working Hand in Hand
It can be seen that DeFi provides security to FinTech transactions, while bringing more financial control into the user’s hands.
Let’s take a look at PlutusSwap to explain this.
PlutusSwap is a revolutionary Automated Market Maker protocol built by the Plutus Capital community and powered by the yPLT, which is its governance token.
Besides earning high yield on PlutusSwap, holders of yPLT can vote on proposals and decide on future development of the PlutusSwap ecosystem.
There are over 1500 Monthly Active Users (MAU) on the Plutus Capital Lending app, allowing users to lend, borrow and earn interest.
Plutus Capital will be implementing PlutusSwap AMM into our existing lending app, leveraging on the efficiency of an AMM system instead of using a traditional order book or arbitraging from the various exchanges in order for the lending function to work.
Harnessing on the power of DeFi with the integration of FinTech infrastructure and DeFi protocols!
Before you buy or invest in PLT or yPLT, please take the time to understand the rewards model, as well as the risks involved. All decisions that you make on the Plutus or PlutusSwap platforms will be your sole responsibility.
About Plutus Capital
Plutus Capital is backed by a FinTech system built on a public blockchain, where an individual can enforce greater control of his own funds. The Plutus blockchain and token rely on the tamper-proof nature of ledger as well as smart contract and validation to ensure all processes are safe and secure.
普利拓斯资本借贷应用程序上有1500多个月活跃用户，允许用户借贷，借贷和赚取利息。 普利拓斯资本将利用自动做市商(AMM)系统的效率，在我们现有的借贷应用程序中实现PlutusSwap AMM，而不是使用传统的订单簿或从各个交易所套利以使借贷功能正常工作。通过金融技术基础架构和DeFi平台的集成，充分利用DeFi的强大功能！