The Biggest Barrier to Building in DeFi
DeFi services have the potential to
make managing finances easier than ever before: We’ve entered the era of
programmable financial instruments. DeFi promises us complete control over our
funds, stronger security infrastructure, seamless payment functionality,
and investment options previously only available to banks. To bring these
advancements to the market, DeFi developers are faced with numerous
technological obstacles. The biggest of all being the task of building the full
functionality of a cryptocurrency exchange into their project. This obstacle is
further complicated by the matter of liquidity. Alice wants to send Bob
Ethereum to pay for his product. Bob wants to receive Bitcoin as
compensation. For a DeFi tool to handle converting Ethereum to
Bitcoin so that both Alice and Bob are satisfied, there needs to be
someone willing to sell Bitcoin for Ethereum. If there isn’t enough Bitcoin
being sold at the initial agreed upon price, it will cost more Ethereum than
originally anticipated. This negatively impacts Alice’s buying power
incentivizing her to avoid making conversions in the future. To solve this
problem, developers use cryptocurrency liquidity networks
like Radar Relay, Bancor, UniSwap, and Kyber Network. These services guarantee
customers the necessary liquidity to facilitate a stable transaction
while still being fully decentralized, ensuring that customer’s funds are
never in anyone else’s possession. Each liquidity service has its own
microeconomy where prices are regulated by the protocol the decentralized
exchange operates on. This creates price differences between exchanges. To
attain the best price, developers are tasked with building additional
infrastructure to manage this process. The extensive amount of work required by
developers to accomplish getting the best price from decentralized
liquidity networks is a threat to the success of many projects. By
integrating with the multiple liquidity networks Totle is able to leverage a
suite smart contracts that seamlessly compare prices and routes transactions
through the top liquidity networks. Totle offers developers the infrastructure
they need to overcome the enormous barrier of efficiently exchanging users’
funds. You can be an early investor in Totle by joining the crowdfunding
campaign here. For projects that can benefit from using Totle, get API access
here. To get updates on Totle, follow them on Twitter, join their Telegram
group, or reach out to Totle directly.
DeFi services have the potential to
make managing finances easier than ever before: We’ve entered the era of
programmable financial instruments. DeFi promises us complete control over our
funds, stronger security infrastructure, seamless payment functionality,
and investment options previously only available to banks. To bring these
advancements to the market, DeFi developers are faced with numerous
technological obstacles. The biggest of all being the task of building the full
functionality of a cryptocurrency exchange into their project. This obstacle is
further complicated by the matter of liquidity. Alice wants to send Bob
Ethereum to pay for his product. Bob wants to receive Bitcoin as
compensation. For a DeFi tool to handle converting Ethereum to
Bitcoin so that both Alice and Bob are satisfied, there needs to be
someone willing to sell Bitcoin for Ethereum. If there isn’t enough Bitcoin
being sold at the initial agreed upon price, it will cost more Ethereum than
originally anticipated. This negatively impacts Alice’s buying power
incentivizing her to avoid making conversions in the future. To solve this
problem, developers use cryptocurrency liquidity networks
like Radar Relay, Bancor, UniSwap, and Kyber Network. These services guarantee
customers the necessary liquidity to facilitate a stable transaction
while still being fully decentralized, ensuring that customer’s funds are
never in anyone else’s possession. Each liquidity service has its own
microeconomy where prices are regulated by the protocol the decentralized
exchange operates on. This creates price differences between exchanges. To
attain the best price, developers are tasked with building additional
infrastructure to manage this process. The extensive amount of work required by
developers to accomplish getting the best price from decentralized
liquidity networks is a threat to the success of many projects. By
integrating with the multiple liquidity networks Totle is able to leverage a
suite smart contracts that seamlessly compare prices and routes transactions
through the top liquidity networks. Totle offers developers the infrastructure
they need to overcome the enormous barrier of efficiently exchanging users’
funds. You can be an early investor in Totle by joining the crowdfunding
campaign here. For projects that can benefit from using Totle, get API access
here. To get updates on Totle, follow them on Twitter, join their Telegram
group, or reach out to Totle directly.
