From loans to betting platforms, DeFi (decentralized finance) is staking its claim to become the future of finance. This has been reflected in many new firms offering greater infrastructure to leverage DeFi and DeFi-based applications. Despite all this attention, it is noticeable that DeFi is not being adopted with the same scale as the ICO boom of 2017. That could be in part to the fact that the industry has matured, with more safeguards in place. Another significant part of the puzzle is that DeFi isn’t yet as accessible as it needs to be, with a sharp learning curve and heavy user error implications.
DeFi Suffers from Entry Barriers
While adoption of DeFi has been impressive, entry barriers still exist. Making use of DeFi often requires trading on liquidity pools and that incurs high fees. At the same time, the success of DeFi has slowed the Ethereum network to a standstill and pushed up the costs of transferring ERC20 tokens. A scarcity of fiat on/off ramps adds yet another barrier, with users struggling to find the same ease of use as decentralized exchanges with getting fiat currency into the system. There are signs that these barriers are set to be broken down with a number of companies working to fix one or more of these issues.
PlasmaPay Takes on DeFi
One firm that is taking on the challenge of resolving these issues is PlasmaPay. They are a global cryptocurrency wallet and digital payments dApp which provides fiat on/off ramp services via both desktop and mobile platforms. PlasmaPay operates in over 165 countries and provides services to both individual users and institutions alike. Some of these services include the buying, selling, and exchange of digital assets as well as cross-border financial transactions.
PlasmaPay is able to bypass the limitations of other chains and congested networks because it is built on its own custom blockchain, Plasma DLT. Plasma DLT is a fast blockchain capable of 50,000 transactions per second and a range of 42 fiat-pegged stablecoins, so more customers can enjoy stablecoin support in their native currency.
PlasmaPay’s ultimate goal is to open DeFi to the masses so they are no longer restricted to legacy financial institutions such as banks. The current popularity and predicted explosion of DeFi mean that there is a distinct need for payment processors as well as fiat-to-crypto transaction facilitators.
This is where PlasmaPay comes in. While their new innovations are making waves in the market, the company has been perfecting its offerings since 2018, long before DeFi became the phenomenon it is today. During that time, PlasmaPay developed their non-custodial wallet which is able to store hundreds of different types of tokens. PlasmaPay for Business then launched in 2019 which featured the process of Visa and Mastercard crypto-fiat accounts enabled for businesses. The Crypto Checkout feature allowed for the buying of tokens from major exchanges using traditional debit cards. That same year, the Plasma Chain mainnet, which is PlasmaPay’s public blockchain, was publicly released, with several decentralized applications currently running on it and a global release is expected in 2021.
In the last year, the team has developed smart contracts that are compatible with DAO, NFT, and NTT tokens. There are plans to release the PPAY token, which is the native token of the PlasmaPay ecosystem, in 2020. The initial supply is to be 55,750,000 PPAY and total supply will be capped at 1 billion tokens. Those who hold the tokens will be able to participate in various activities in the ecosystem, including staking, governance voting, and liquidity mining. More announcements are expected soon from the PlasmaPay team.
DeFi into the Future
If DeFi is to succeed in the longer term, developments such as PlasmaPay will need to secure it by opening the sector to greater user numbers. If some of the entry barriers that currently exist with DeFi can be addressed, then there is no telling where the industry can go within the next few years.
Unlike the ICO market, which was wildly unregulated, DeFi is entering the industry at a more mature time. This means there will likely be more stability and oversight, even as DeFi reaches new heights.
Disclaimer: The author of this post does not have any relationship with the company mentioned. Please consult your financial advisor before investing in any cryptocurrencies, stocks, or companies as they can pose risks for the average investor. This post is informational in nature and does not constitute financial advice.