ProDeFi utilizes a semi-decentralised approach to constructing solutions, leveraging on the transparency and security of decentralised architectures while providing a fail-safe layer through centralised systems and processes.
By combining the best elements of decentralised finance with measured regulatory control, ProDeFi is bridging DeFi and traditional finance.
The global financial market comprises primarily the equity market, bond markets, derivatives market and currency markets and is one of the largest industries in the world. The size of the global financial market is truly massive and has been growing steadily through the years.
The value of the global domestic equity market increased from US$65.04 trillion in 2013 to the US$74.43 trillion in 2018,4 whereas the value of the deals on the international bond market has remained stable from 2015 to 2019. In the second quarter of 2019, value of such transactions amounted to approximately US$ 1.13 trillion.
Lenders are able to stake their funds into ProDeFi liquidity pools and borrowers can take out loans against those funds after a simple KYC process.
In the event of a borrower default, ProDeFi will claw back the funds through traditional judicial processes and dispute resolutions methods.
Investors can vote on the fund structure through the ProDeFi contract and verify the breakdown of funds across the various protocols.
ProDeFi utilize multiple licenses to function as a fund manager and will provide access to its finances to independent auditors.
Users are able to freely transact their cryptocurrencies and execute cross-chain transactions through the ProDeFi liquidity pools.
ProDeFi utilize multiple licenses to provide fiat-to-crypto exchange services for traders.
Market Opportunities for DeFi
The cryptocurrencies which power various blockchain protocols all have different characteristics. This makes an apple-to-apple comparison between the ProDeFi industry and traditional finance difficult as it depends on correctly classifying cryptocurrency – either as a security, commodity, derivative or currency.
Nevertheless, it is clear that, while the DeFi industry has been growing at a healthy rate, it is still dwarfed by the traditional finance industry. If DeFi accomplishes half of what it aspires to do and captures a fraction of the traditional finance industry, the potential returns for first movers in the DeFi industry is massive.
Benefits of a Semi-Decentralized Financial System
As described in the example of a lending platform, a semi-decentralized approach encapsulates the strengths of centralized and decentralized systems while reducing the impact of their flaws.
Centralized typically benefit from increased efficiency due after many years of improvements and resource wastage is kept to a minimum through heavy optimization. The flexibility of centralized architectures allows for broader applicability and opens up numerous use cases for financial solutions. Consumer protection is also established through governing dispute resolution structures and judicial processes.
However, the primary drawback is the centralization of risks and the lack of transparency, creating a single point-of-failure for the entire system which could lead to lasting consequences for all participants.
One of the key issues faced by blockchain technology is walled-garden structures of each protocol. Each protocol solve differing challenges and have varying approaches even when working on the same goal, leading to layer-two solutions being built across a multitude of blockchain protocols.
However, on-chain data is often not enough to execute on these financial solutions and users would also have their own set of preferences. Mismatch across solution providers and consumers means DeFi ecosystems are often fragmented across multiple blockchains.
The ProDeFi Ecosystem
The vision of ProDeFi is to build an open ecosystem that supports the integration of existing and future financial solutions. With the ProDeFi Chain serving as the interoperability backbone and the ProDeFi wallet serving as the front-end interface to facilitate interactions, users will be able to tap onto services across a myriad of protocols in a seamless manner. Products that were once isolated from others due to technical constraints can now be reimagined with advanced use cases by leveraging on supporting features developed by others.
The lifeblood of the ProDeFi ecosystem, these smart contracts allow community members to stake funds to provide liquidity for the ProDeFi financial solutions, receiving a part of the profits afterwards.
Can be built and deployed across numerous protocols.
Utilizes zero-knowledge technologies to protect the privacy of our users.
Accessible by all users without prior approval.
The ProDeFi Chain will focus on cross-chain interoperability, with an emphasis on legacy protocols that are stable and support contracts.
The ProDeFi Chain is powered by Tendermint Core consensus.
A decentralised network of oracles will provide cross-chain data feeds through a simplified consensus procedure.
Onboarding of existing DeFI initiatives will reduce the time to market and create a more open ecosystem.
ProDeFi Token (PDT) will be the native token for all ProDeFi related solutions. An equivalent representation will exist across all protocols that the ProDeFi Chain is interoperable with (e.g. ERC20 on Ethereum, BEP-2 on Binance Chain) and such representations will be backed by PDT locked on the ProDeFi Chain.
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