As blockchain technologies continue to evolve, Decentralized Finance (DeFi) is an industry that has seen particularly explosive growth in a relatively short space of time. True to the philosophy that led to the birth of blockchain technology back in 2009, DeFi removes third parties from value chains in a trustless scenario that empowers individuals to gain control over their finances.
The advantages of DeFi are numerous, namely financial inclusion, disintermediation, and accessibility — all enhanced by the rapid development of Cross-Chain Technology. With the increased usage of established networks such as Bitcoin and Ethereum, issues such as scalability and economical feasibility have riddled the industry. New scaling solutions have brought about potential alternatives and by leveraging the cross-chain technology, various solutions to the interoperability between blockchains have begun erupting.
Cross-chains have been a big topic in recent months, and with the development of the DeFi industry, more potential public chains are being applied in layer one.
With the expansion of blockchain technology’s capabilities, a select few DeFi protocols have started to open the space to institutional investors, making room for traditional finance to enter the space. And with the likes of decentralized lending platforms such as Aave and Compound launching DeFi services for institutional investors, the entrance of big players into this arena seem to be on the horizon.
One of DeFi’s core features is that decentralized exchanges (DEX) rely on Liquidity Provisioning. Essentially, DEX’s run on the ability of users being able to be a “part of the exchange” by incentivizing it. As decentralized exchanges continue to accrue massive sums of liquidity, the Total Value Locked (TVL) across exchanges continues to jump up and surpass all market expectations.
If you’re familiar with liquidity provisioning, you’ll know that in order to participate in a standard LP, you need to provide both assets. That’s where POP! differs from standard LP’s, by providing projects with a unique approach to partnerships that bases itself on a mutual liquidity pool (MLP), whereby users can participate directly through Single-Sided Liquidity Provisioning (SSLP).
The unique model that POP! has created allows users to provide single-sided liquidity onto a Mutual Liquidity Pool (MLP) by matching their liquidity with another user, effectively becoming partnered farmers. This unlocks a new opportunity for DeFi participants, in a topic that is heavily discussed and developed on.
As the DeFi space continues to grow, and the entire ecosystem moves towards a cross-chain environment, niche areas within the DeFi space, such as the development of single-sided liquidity provisioning will receive greater attention from institutional investors, as we are already seeing with platforms like Aave and Compound.
Although DeFi is still a nascent market, it provides an alternative to centralized infrastructure, and enables users to operate freely in a fully permissionless ecosystem.
With this in mind, POP! continues to strive towards the cutting-edge technology and tools desired by the future participants, to ensure we remain relevant in an ever-changing market. As we continue to develop our model, ensuring ease of operation and security, POP! continues it’s journey to becoming the Golden Standard for the Partnership Industry!
And as always… stay POPin’!
About POP!
POP! is a platform that allows 2 projects to objectively display mutual trust and commitment to each other, by locking their respective tokens together and creating a trustless Mutual Liquidity Pool (MLP). In addition, it grants POP! users the opportunity to provide single-sided liquidity, in the form of their favourite token, by matching them with another POP! user and adding their joint liquidity into the MLP.
Powered by Faculty Group, POP! aims to set a new golden standard with regards to partnerships, and how they are perceived in the digital asset ecosystem.
