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Secured Finance, a high-performance DeFi protocol, introduces a number of new-gen technologies to advance the processes of yield generation and guarantee transparent benchmark interest rate determination.
Secured Finance launches in mainnet
After months of stress tests and a beta campaign, Secured Finance is ready to launch its public mainnet version. The full scope of the opportunities will be available to customers starting from December 2023.
In its design, Secured Finance implemented some eccentric concepts to address the most dangerous bottlenecks of Web3 progress as of Q4, 2023. For instance, Secured Finance solved high and unpredictable gas price issues through technological innovations, such as the use of lazy evaluation. This enabled efficient operation of the order book while keeping costs down.
One of the biggest challenges to the fixed interest rate market is ensuring sufficient liquidity. Secured Finance successfully enhanced liquidity on the secondary market through a unique market structure combining an order book system and a clearing house.
Secured Finance introduces more fixed interest opportunities
The platform is focused on reliable and stable income streams for its audience. Existing DeFi heavyweights like Aave and Compound mainly focus on variable interest rates using pools and have paid little attention to the fixed interest rate market, which is difficult to realize in a pool-based system.
Secured Finance identified this gap and provided a new option to the market by offering fixed interest rates.
As explained by its representatives in recent live Q&A session, this decision is expected to bring new customers to Web3 and blockchain:
The introduction of a fixed interest rate market brings stability to the cryptocurrency market. It becomes easier for investors to predict future interest rates, facilitating long-term investment strategies. This maturity of the cryptocurrency market is likely to attract a new layer of investors.
Also, to protect its users from uncertainty, Secured Finance offers a new way to manage the volatility of cryptocurrencies through yield curves and fixed interest rate markets. This approach reduces market uncertainty and provides a stable environment suitable for long-term investment strategies
Racing toward new level of decentralization
In its technical mechanism, Secured Finance is keen to find the perfect equilibrium between on-chain and off-chain elements. An on-chain order book system, like Secured Finance, provides high transparency and reliability, as all transactions are public and verifiable by anyone. This ensures that the process of interest rate determination is perceived as fair, increasing its validity as a benchmark.
Meanwhile, for interest rates to function as a benchmark, the transparency and reliability of their determination process are crucial. Fair price formation on-chain provides a trusted standard on the derivatives market, promoting healthier market development.
Blockchain technology has philosophical significance in moving away from centralization toward a decentralized, trustless system. This aims to establish new standards of fairness and transparency in financial transactions, and Secured Finance aligns with this philosophy.
With Secured Finance, traders and liquidity providers with various backgrounds will be able to enjoy modern DeFi experience in a secure and resource-efficient manner. The platform reaffirms its commitment to offering predictable and profitable income gains strategies for newbies and pros.
Alex Dovbnya
Arman Shirinyan
