NUTS Platform Docs
2.0.0
2.0.0
  • Introduction
  • Opportunity
    • Multiple Classes of Financial Instruments
      • Financial Instruments Supported
    • Reducing Barriers to Entry
    • Customization and Compatibility
  • Architecture Overview
    • Design Principles
    • Domain Model
    • Access Control
  • Implementation
    • Escrow
      • Common Functionalities
      • Instrument Escrow
      • Issuance Escrow
      • Deposit Escrow
    • Instrument Manager
    • Instrument Registry
    • Common Oracles
      • Timer Oracle
      • Price Oracle
    • Protobuf Solidity Generator
    • Interactions
      • Interaction - Instrument Management
      • Interaction - Issuance Creation
      • Interaction - Issuance Engagement
      • Interaction - Token Deposit
  • Platform Upgrade
  • API Reference
  • FSP Guidebook
    • Principles
    • Use Cases
      • Loan Instrument
      • Lockup Instrument
      • PIPE Instrument
      • ESOP Instrument
  • Appendix
    • FAQ
    • Glossary
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  1. Opportunity

Reducing Barriers to Entry

The traditional financial system has created tremendous value to the modern economy through the core functions of:

  • Value exchange: a way of making payments

  • Intermediation: a way of transferring resources between savers and borrowers

  • Risk transfer: a means for pricing and allocating risks

  • Liquidity: a means of converting assets into cash without undue lost of value

Mapping the core functions over to the open finance ecosystem, we have witnessed and hypothesized the following:

  • Blockchain networks have expanded the function of value exchange through digital assets

  • Financial service providers will continue to play a significant role of intermediation; organizing and facilitating transactions between counterparties

  • Financial instrument diversity will increase the efficiency in risk transfer functions

  • Liquidity will reach a sufficient level in an optimal functioning ecosystem comprised of financial service providers and participants

The motivation in reducing the barriers to entry for all financial service providers is to stimulate intermediation and liquidity functions in the open finance ecosystem.

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Last updated 5 years ago

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