The recent growth of decentralized finance (DeFi) has unlocked massive opportunities in the market. A number of DeFi platforms have come to life offering some interesting lending and liquidity opportunities to its users.
Leveraging the power of blockchain technology, the DeFi market is like a big ocean of lenders and borrowers that transact in anonymity. However, although the power of absolute decentralization looks very promising and powerful, there are some underlying risks with respect to lending processes that might be overlooked and unsuitable for institutional B2B lenders.
Yes, decentralized finance (DeFi) is absolutely the future of finance. But the transition from CeFi to DeFi must be smooth and easy. UnFederalReserve is one such middle-market DeFi platform that democratizes lending for the purposes of overnight cash balancing.
The unFederalReserve (eRSDL) is a web platform that aims to build a consortium of B2B lenders and commercial enterprises who, in turn, are seeking short-term liquidity and security.
While the DeFi technology is certainly path-breaking, the issue with peer-to-peer lending is that ordinary users have little knowledge regarding price discovery or setting up the rates for lending or borrowing. Thus, there’s a high chance of being gamed by the experts. In such a case, it’s better to have the subject-matter-experts deal with the situation.
unFederalReserve brings merchant banks in the picture who are experts at pricing risk. Besides handling the cash needs and surpluses on a daily basis, middle-market lenders are experts at managing their balance sheets while effectively balancing profitability and competitiveness.
The eRSDL ecosystem connects all these sophisticated parties I.e. lenders and borrowers, by offering a safe and secure medium of transactions. It connects all those “pricing oracles” with ordinary people. The unFederalReserve ecosystem wants to eliminate any foul play and create a conducive environment for ordinary people to participate in the trigging DeFi Ecosystem.
Understanding the Working of the eRSDL Ecosystem
All the B2B lenders linked with the eRSDL ecosystem have a ready marketplace and excess capital to deploy. The merchant banking counterparts associated with this banking system will measure and price the risks for the short term. This facilitates democratic participation for eRSDL holders at market rates while simultaneously mitigating the risks.
Note that the eRSDL ecosystem replaces the Fed and banks with an interwoven network of sophisticated CeFi lenders. The native cryptocurrency eRSDL serves as the currency of CeFi’s Treasury function. With eRSDL, all the CeFi lenders and the public can easily transact in the DeFi community based on the existing rules and after analyzing other risks.
The eRSDL platform recognizes the simple fact that DeFi alone cannot provide risk-based guidance to prevent any loss of capital in case of risks. Thus, it serves as a middle-market connecting CeFi lenders with access capital with enterprises, businesses, and the general public who are ready to borrow.
This helps DeFi players to get access to CeFi market opportunities without randomly speculating on over-collateralized stablecoin loans. The eRSDL platform users and holders get to decide which CeFi players can participate.
eRSDL developers think that this is the right way to get borrowers off the centralized platform while connecting them with legit market players and bankers from the financial space.
Residual Token (eRSDL) And Working With IFEB.bank
The tokenomics for the native eRSDL token is shaped by a number of factors like Market Potential, Token Mechanics, Competitive Advantage, User Adoption, Management Team, etc.
The Residual Token Inc recently collaborated with the International Finance Enterprise Bank (IFEB) that ensures mutual support and cooperation for expanding the digital banking platforms. Residual Token co-founder Howard Krieger said:
“Our selection of IFEB is based on shared values. The relationship has positively impacted both companies and the banking community. This relationship is a natural extension of our strong ties and mutual commitment to pursuing excellence and strengthening our client’s brand stickiness solutions. We look forward to continuing to work with IFEB and helping those in need.”
Residual Token co-founder Howard Krieger
The eRSDL initiative of Residual Token aims to eliminate all the complexities of lending and borrowing by leveraging the power of DeFi. But at the same time, it ensures transparency and the right industry practices for a risk-free and legit functioning of the platform. It brings together multiple aspects of financial space like margin lending, interest-bearing savings account management, fintech, and DeFi.