The decentralized financial market, despite its popularity and rapid growth, remains limited by some difficulties. The growth prospects and value of the decentralized finance area for the community and economy in general are quite clear. Several industry complexities do not yet allow DeFi to fully develop and provide financial services to users.
First and foremost, most DeFi protocols have focused on one aspect of DeFi; They do not offer a holistic solution to users’ bottlenecks when it comes to accessing financial services. Users cannot get the services they need from a single point and have to spend extra time and fees, at the same time this causes several systemic problems for the DeFi industry as a whole:
Limited decentralization: Despite tremendous growth, DeFi is still made up of fairly small companies. Most of these types of niche projects cannot build a large enough user base to actually take the project off the center. If very few people get involved in staking, interacting with, or even holding a token, the platform using it is automatically centralized. There is even more for management tokens. The nature of token distribution and circulation is extremely important to achieve the desired level of decentralization.
Expensive transition between local tokens – As most DeFi protocols offer very limited revenue generation opportunities, users need to switch between protocols to diversify their portfolio. And since each protocol has its own native token, users have to take various “extra” transactions to trade those tokens. As a result, the load on the network increases significantly. This burden on the network with multiple transactions due to the limited functionality of a single token increases the margin of participation fees. Because of this ripple effect, DeFi is losing one of its main advantages: cheapness.
An effective solution to this problem can be collaboration of DeFi projects. The approach is quite reasonable, but it has no drawbacks. For example, tokens within this type of project “confederation” compete for users’ attention and staking accordingly. And then there comes the problem of overloading the main blockchains and again increasing costs.
Another effective solution was proposed by the fintech company Nimbus, which has been on the market since 2019 and already has 50,000 users. On January 27, the company is launching a new DAO-focused platform for decentralized applications (dApps) to provide users with 10 earning strategies within a single ecosystem. Moreover, full access to the ecosystem is provided by a single token: the NBU, which will be released on the same date January 27. According to the company’s roadmap, four decentralized applications will be offered in 2021:
Nimbus IPO Hub dApp is a decentralized application that provides users with access to IPOs through liquidity pools. IPO Hub also eliminates the bureaucracy and the need to pay extra commission fees. The Nimbus team places great emphasis on making their dApps fully compliant, so investing in public offerings using crypto assets opens up a smooth and secure space for crypto enthusiasts and finally those who want to take advantage of this opportunity.
The Nimbus Crowdfunding dApp is a tool that allows people to invest in promising startups at an early stage of fundraising with access to both venture capital and convertible loans. Also, for maximum risk reduction, startups will be selected using the same methodology used by venture capital funds, and then DAO participants will have a final say. Funds will also be distributed based on smart contracts for improved accountability and efficiency.
Crypto Arbitrage Trading is a dApp focused arbitrage and trading tool. This is a decentralized version of Nimbus Arbitrage-Trading bot that is already working and popular (over 50,000 users). The company aims to implement innovative pool mechanics with advanced risk reduction and reward optimization for our users.
P2P Lending dApp is a decentralized application that allows users to borrow and lend while minimizing risks with multiple techniques that increase the likelihood of debt recovery. There will also be the option to match a lender with a borrower based on location.
As a result, users can access a significant portion of financial products (in demand in the DeFi community) through a single platform, Nimbus, and gain access to unique time-tested investment tools such as IPOs. Moreover, the list of applications is not final – in the future Nimbus plans to add new dApps and integrate third-party dApps.
Using a single token saves users from having to trade them regularly. This saves time and money, reduces the burden on the blockchain, and eliminates the problem of internal competition for the user base. Also, the platform already has a sufficient user base for complete decentralization and the resources for further development. And finally, its DAO only has 10% of the governance tokens reserved for the Nimbus Organization.
Could Nimbus solve the core problems of the entire DeFi market when it launches on January 27? No. One project cannot change the whole industry. However, we are likely to see the “first steps” of the new DeFi industry that truly implement the best practices of decentralization and provide users with realistic and efficient financial tools.