Investing in Beyond Finance
The latest addition to Sky Ventures Portfolio is Beyond Finance. We want to share a few aspects of what made us invest in Beyond Finance.
Cryptocurrency-based synthetic assets aim to give users exposure to various assets without needing to hold the underlying asset. This could be anything from fiat currencies, such as the United States dollar or the Japanese yen, to commodities like gold and silver, as well as index funds or other digital assets.
By using these unique synthetic assets, investors can still hold tokens that track some assets’ value without leaving the cryptocurrency ecosystem. Crypto synthetic assets also offer users all the benefits of decentralization. They are open to all users across borders by using secured smart contracts and other instruments, and the data is stored on distributed ledgers.
Decentralized Finance (DEFI):
Decentralized finance is a form of finance that does not depend on central financial systems and methods such as brokerages, exchanges, or banks to offer Lending, Insurance, LP’s and utilizes smart contracts on blockchains, the most common being Ethereum.
DEFI has shown tremendous growth over the last 12 months and the total volume locked in DEFI reached 37.46 billion dollars in volume.
Advantages Of Decentralized Finance (DEFI)
DEFI runs on highly programmable smart contracts, automates execution, and enables decentralized financial instruments and digital assets. Blockchain’s decentralized design increases security and auditability. Blockchain is not hackable, and data tampering is impossible. Ethereum’s Network ensures that DeFi protocols and applications are built to integrate and complement one another. With DeFi, developers and product teams have the flexibility to build on top of existing protocols, customize interfaces, and integrate third-party applications. Every transaction is broadcasted to the ethereum network, and any user can verify any specific transactions with HASH. The highest level of transparency around transaction data allows for rich data analysis and ensures that network activity is available to any user.
Disadvantages Of DEFI:
Over-collateralization is the provision of more collateral than is needed to reduce risk to a lender or an investor in debt security. Still, there is a lot of room for Defi protocols need to work on the Collaterization aspect.
Smart Contracts, though, are of the highest security and decentralized; they are vulnerable to malicious attacks. Smart contracts are exploited for various reasons such as Block Gas Limit Vulnerabilities, Missing parameters or Precondition Checks, Frontrunning, Simple Logic Bugs.
Low liquidity is still a concern in Defi Ecosystem. Though Defi TVL has surged a lot in recent times, there are still many scopes to improve liquidity to improve liquidities, especially decentralized exchanges. To scale Defi to the masses, an abundance of liquidity on decentralized exchanges is a must scenario.
Poor User experience is also a hindrance to the growth of the defi ecosystem. For a normal user who is not familiar with blockchain, Decentralized applications are a lot complicated.
BEYOND Finance Solution:
Beyond Finance provides a user-friendly interface with low costs to attract the masses and makes sure normal users understand the protocol.
Smart Contracts are audited and secured with an affordable Collateral ratio — OLM.
Users get relieved from high transaction fees with Kickback scheme-Layer 2 — OVM.
Synthetic Assets:
Cryptocurrency-based synthetic assets aim to give users exposure to various assets without needing to hold the underlying asset. This could be anything from fiat currencies, such as the United States dollar or the Japanese yen, to commodities like gold and silver, as well as index funds or other digital assets.
By using these unique synthetic assets, investors can still hold tokens that track some assets’ value without leaving the cryptocurrency ecosystem. Crypto synthetic assets also offer users all the benefits of decentralization. They are open to all users across borders by using secured smart contracts and other instruments, and the data is stored on distributed ledgers.
Limitations of Current Synthetic Asset Protocols:
Poor price tracking of synthetic products in comparison to actual underlying products.The high cost of trading synthetics due to Ethereum network congestion. Poor Interface when using an exchange.A limited number of assets available.Lack of awareness on how to use the underlying financial products. Synthetic assets protocols TVL still very less and liquidity problems coincides.
Beyond Finance Solution :
Beyond aims to provide a high number of assets for investors to trade by interacting with the protocol. Beyond tracks, Real-Time Asset Prices through Oracle System and provides accurate price feeds. To maintain healthy liquidity on the protocol, DAO Governance and Incentives will be provided to Liquidity Providers.
Beyond Finance Token Incentives :
1.Staked BYN tokens earn a portion of fees on the Beyond protocol
2. Created synthetic tokens earn a portion of newly issued BYN tokens as an incentive –75% of the initial cost
3. Liquidity pools, such as BYN-ETH, will be created on Beyond Exchange and Uniswap.
4. DAO Governance Rewards
5. Trade Synthetic assets in Beyond DEX and make a Profit.
6. Lending on Synthetic Assets.
Social Media Channels:
Website:https://beyondfinance.io/
Twitter:https://twitter.com/beyondfinancee
Telegram:https://t.me/beyondfinanceglobal
Sky Ventures Website:https://skyventuresvc.com/
