Decentralized finance protocols powered by distributed ledger technology and smart contracts has enabled any individuals to access financial services on the blockchain in an open and trustless manner.
As decentralized finance primitives such as decentralized lending, margin trading, exchange and synthetic assets creation continue to test and redefine the financial capabilities of blockchain networks. These new primitives also serve as the building blocks to an open digital financial system; allowing builders to mix and match protocols to create new financial applications.
From an adoption perspective, two major gaps exist today in the open finance ecosystem:
- Financial instruments used for risk management are extremely limited, which contributes to the proliferation of toxic assets, volatility and irrational speculation behaviours. Subsequently, preventing effective differentiation of asset quality.
- Building new applications on top of any DeFi protocols is a rigid process that requires extensive resources and understanding for; blockchain research and development, security measures and finance domain knowledge. As a result, customization can be restricted and the barriers to entry is substantial for any individuals or teams.
In this document, we introduce a decentralized technology platform for issuing and managing multiple classes of financial instruments on the Ethereum blockchain; empowering all types of financial service providers by simplifying the issuance process, and further enriching instrument diversity on blockchain networks.