By: Bilal Sanchez
When you hear the future of France, sorry finance*, what exactly does that mean to you? No, it’s not one of those crypto lingos to make us seem smart. In fact, DeFi (Decentralized Finance) is presenting a unique opportunity for humans on planet earth to reshape and rethink the way we manage and use our value.
The Friction with Centralized Finance
Centralized finance presents a variety of issues that the majority of people don’t think about on a day-to-day basis. At this point you may be wondering, “if I don’t think about it, why should I care?”
Well, in fact, all the main concerns that DeFi enthusiasts like ourselves have can actually apply to the general population such as fraud, long wait times for transactions, no full control over your money and assets, high fees and much more.
Although big central banks, private lenders and large trading floors have fancy, big buildings and come dressed in suits, the tech they use is completely old-school. It’s built so that only one person at the top of the hierarchy can make all the money and decisions.
Leveraging web3.0, DeFi (Decentralized Finance) allows all users to own a chunk of the product they’re using whilst reaping the benefits of fully-transparent, open-source, fast transactions.
One major question in the crypto space over the last year has been: how will these traditional finance players leverage DeFi to improve their products, services and overall customer experience?? That is where unFederalReserve comes in — bridging the gap between TradFi (traditional finance) and DeFi entities, allowing traditional investors to bridge their investments to the decentralized world seamlessly and vice versa whilst benefiting from the perks that DeFi and blockchain have to offer!
Simply put, ReserveLending™ is a leading protocol for lending and borrowing in the DeFi space, allowing consumer (retail) lenders to supply their tokens and earn interest on it with non-lock clauses, whilst being able to collateralize its placement and borrow other crypto tokens against it.
Leveraging a fork of the Compound® protocol and following some of the top compliance frameworks in the industry, unFederalReserve stands out as one of the market’s top secure algorithmic money market protocols.
Who ReserveLending is for:
- The average DeFi beginner who needs liquidity/leverage
- Sophisticated DeFi/crypto lenders and borrowers
- Stablecoin (aka fiat) holders wanting a percentage-based return (Fixed income)
- New crypto users who have the same problems/solutions we can provide
- Our loyal community members who HODL and support the vision
ReserveFunding™ provides a traditional, alternative investment onramp that allows users or businesses to invest using USDC. Our processes and technology manage identity information and money information crypto/USD fiat currency to USDC (a USD-pegged stablecoin) and places that capital into institutional and traditional financial markets. Allowing for people with crypto liquidity to have access to traditional investment products and vice versa. Not to mention non-bank lenders will reap the benefits of blockchain technology and will save lots of money in comparison to operating in their traditional ecosystem.
Our platform handles underwriting, funding, servicing and distribution of returns from these investments all while staying compliant with regulations and gathering KYC (Know Your Customer Information).
Who ReserveFunding is for:
- the underserved non-bank lenders with traditional tech and low liquidity
- Tribal lenders
- KYC crypto holders
- Financial/Wealth managers
The Synergy and How eRSDL Eats Finance
If you still don’t get the big picture and you’re wondering how traditional investors and traditional investment products will get merged with blockchain, then you’re in the right place!
- Individuals and businesses sometimes need cash and sometimes have extra cash
- Both want to pay as little as possible to borrow money, and want to earn as much as possible on their excess money
What the banks do not tell you is that the individuals and the companies need each.
Well they need each others’ money, frankly. Banks have acted as the intermediaries between them for generations. Think about it. You save your money at a bank as a person. A lot of people do. And then what happens? A bank takes all our smallish deposits, and lends it in one giant chunk to businesses.
The bank manages a lot of moving parts, but they make a great deal of money performing that function.
DeFi automates the management of a lot of the basic lending and borrowing moving parts. But, traditional finance comes with terms and conditions that DeFi cannot replicate.
ReserveLending and ReserveFunding takes advantage of the elegant simplicity of DeFi and plugs it into the more structured finance world of alternative investments. And, in doing so, we train traditional, alternative investment recipients on how to work with DeFi to lower their overall costs of capital.
We also allow ReserveLending suppliers to bring in their leveraged capital and take some gains off the table without selling, and invest in things that don’t bounce around with the price of Ethereum.
ReserveFunding investments may be more complex given the regulatory requirements around private investment in the U.S., but we have the rails to facilitate. And the ReserveFunding investments that have excess cash at times, are free to participate in ReserveLending, to each a return on their fallow cash, or we will create special vaults just for the cadre of entities a particular ReserveFunding investment is comfortable managing their capital with.
The increased number and scope of ReserveFunding opportunities attracts more ReserveLending users, and each ReserveFunding entity’s excess cash provides much needed liquidity on the ReserveLending.
All in all, unFederalReserve (eRSDL) acts as the middleman between public/private borrowers/lenders and banks or private funds trying to ramp their products over to the crypto world and leverage the opportunities and tech perks it has to offer.
The more traditional finance entities that start to shift their focus towards this ecosystem, the more synergy we’ll have between DeFi lenders/borrowers and TradFi lenders/borrowers, allowing them to merge and work together efficiently in the new financial revolution.
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