NEW YORK, NY / ACCESSWIRE / August 5, 2020 / The Blockchain and Cryptocurrency business lately has been witnessing the rapid rise of DeFi, a promising application scenario of Blockchain Technology. As of August 3, 2020, the total value locked (USD) in DeFi has reached an all-time high of $4.25 billion, showcasing huge potential of future growth. DeFi refers to decentralized financial infrastructure and products built on a blockchain network. DeFi is largely developed on the Ethereum network, which is controlled by a network of computers, rather than a centralized financial institution.
DeFi holds the potential to attract value over the financial services industry, primarily because of its global accessibility – no one can be denied service. In this open and decentralized finance marketplace, parties can transact directly with each other without borders.
Current DeFi platforms such as Compound offers lending and borrowing services underpinned by the over-collateralization of crypto assets. However, one downside of this methodology is that capital extraction is inefficient, and users are unable to unlock the full value of their digital asset portfolio. In addition, many users have capital locked up in the traditional fiat financial markets (i.e. stocks, bonds and real estate), and this locked value remains separated from the decentralized crypto ecosystem.
Aegis is a scalable DeFi platform that solves this problem by giving users access to lending and unsecured borrowing services, based on their credit scores. An "Aegis Score" is then assigned to the individual users, which allows users to unlock corresponding capital loans in the crypto ecosystem. Aegis therefore play the critical role of a capital bridge that gives users the ability leverage and move liquidity seamlessly between fiat and crypto ecosystems.
In addition to loan facilities, Aegis provides its users with a unique portfolio dashboard for trading and asset management which helps users to check their profitability and monitor their credit lines in real time. Aegis plans to offer users a range of innovative asset management products such as structured investment products (e.g. credit swaps, dual currency instruments), synthetic commodities (e.g. gold, oil, copper), traditional financial markets derivatives (equities, bonds), real estate, indices and more, which they can trade immediately without leaving the Aegis platform.
Aegis is a scalable DeFi platform that give users access to lending and unsecured borrowing services, based on their individual credit scores.
At the same time, Aegis will develop a suite of asset management products for its user base that allow them to participate in DeFi investing and asset trading all within the Aegie platform.
Core components of AEGIS include:
I. Lending, Collateralized Borrowing and Unsecured Borrowing
Aegis uses a proprietary AI-powered credit scoring algorithm to assess users' creditworthiness based on the data provided, and assign an "Aegis Score" to each user, which is similar to traditional risk profile assessments.
II. Derivatives Issuance and Trading Protocol
On top of the lending/borrowing layer, Aegis Network allows users to directly trade a wide range of crypto assets and traditional financial market instruments with its native derivatives issuance and trading protocol.
III. Credit Default Swaps as Insurance for Unsecured Borrowing
Aegis Network takes a firm position on risk management, to ensure that lenders in the network receives sufficient protection and recourse in case of any defaults.
IV. AUSD – Stability and Proof of Equity
Aegis Network shall issue a native stablecoin – AUSD as to provide stability of value for the Aegis ecosystem and proof-of-equity for its lending services. Users mint AUSD by locking up their digital assets collateral into the Aegis network. With the AUSD, users are able to borrow mainstream crypto assets such as ETH and also mine AEGIS tokens.
V. Asset Management Platform
Through a user-friendly portfolio management dashboard, Aegis users undertake a questionnaire to determine their risk/rewards tolerance, and is subsequently assigned their individual risk tolerance profiles with Aegis Network.
V: A One-Stop Solution for the Fiat-to-DeFi Value Chain
With the above three core components, Aegis Network is able to truly provide its users with a one-stop DeFi lending, trading and asset management solution that captures the end-to-end transaction and financial management value chain.
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SOURCE: Global News Online
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