Xend Finance: Access to Global, Borderless Savings and Investment.

Introduction.

Recently, the word decentralized finance popularly referred to as Defi has generated a lot of attention all over the globe most especially in the crypto currency space as efforts are been put into the development of Defi products that can actually decentralize the digital economic system in the real sense.

To a newbie in the crypto currency space, the word Defi could sound abstract as he tries to understand what it actually means. A simple explanation is that Defi refers to an ecosystem made up of applications developed on publicly distributed ledgers, in other to facilitate the conduct of permissionless financial services. Mark the word permissionless. This means that no single entity is in control of the transactions.

Xend Finance (Xf) is one of those products developed to decentralize the digital economic system and enable cross-border savings, investment, lending and borrowing. It is a decentralized Credit Union protocol developed to refine, add value and optimize the core operations of credit unions across the globe. It facilitates the decentralization of savings, investment, lending and borrowing operations of individuals and credit unions in addition to generating multi-level return on investment (ROI) to members of the credit unions.

How does Xend Finance work:

Xend Finance allows Individual saving operations and Credit Union operations on its smart contract. For each operation carried out on the Xend finance network, users are rewarded with Xend token ($XEND) which is it native network token.

For credit unions, the administrator of the credit union creates a union on the Xend Finance smart contract for a fee at creation of the union and at each complete save cycle. A percentage of these fees which are paid using the Xend Token ($XEND) are burnt and this causes an increase in the value of $XEND thereby paying first level of interest to the holders of $XEND.

Furthermore, the Xend Finance smart contract systematically and periodically invests user savings (deposits) on DeFi lending protocols such as AAVE, Compound & Yearn Finance Protocol and this produces a second level of interest for the users. The Xend Finance Litepaper explains the XendFinance Multi-Level Interest Mechanism, Xend Finance Subscription Framework and more.

Key Features of Xend Finance:

Built on the binance smart chain, Xend finance offers the following key products and features:

Fiat to Crypto On-Ramp and Off-Ramp:

In simple terms, this means that Xend Finance enables users to deposit fiat (cash) into the network and also convert the funds to cryptocurrency which they can use to acquire crypto tokens that enable them participate in the cryptocurrency ecosystem. Secondly, Xend finance enables users to convert crypto assets for services or products or deposit cash directly into their bank account.

Xend Finance takes advantage of easy-to-use interfaces to onboard existing non-crypto users who have fiat (cash or local currency) and do not have easy access to crypto. This increases the adoption of DeFi by simplifying the existing complexity and accompanying difficulties faced by users in current DeFi products.

Lending Protocol Optimization:

Xend Finance maximizes the return on investment (ROI) of users’ (both individuals and groups) by optimizing and aggregating lending protocols. This it does by periodically investing user savings (deposits) on DeFi lending protocols such as Compound, AAVE & Yearn Finance Protocol in other to generate interest for the users. This helps to remove the complicated DeFi subroutines from the users.

Insurance of Deposits:

Xend Finance leverages decentralized insurance to protect the deposit of its users. Suported by the multi-collateral DAI stable currency, Xend Finance offers complete protection of DeFi deposits, hedge risk against crypto volatility and flash crash as well as provide security against the risk of theft and attack on crypto wallets. It secures users against any possible DeFi risk, cover technical and financial risks, thereby building a sense of safety amongst investors. More so, Xend Finance makes the entire process of submitting, claiming and processing and payouts extremely safe, reliable and transparent.

Cross-Chain Asset Transfer and Interoperability:

Imagine you walked into a coffee shop to get a cup of Grande Cappuccino. The barista starts making your coffee, and you’re sitting at your table, staring at the birds chirping outside the window.

You reach out to your pocket and suddenly realize that you forgot your wallet at home. You look around and stumble upon a sign that says, “Cryptocurrency accepted,’’ which brings a sigh of relief because you have a phone with an ethereum wallet.

Your coffee is now ready, and the barista calls your name. You collect your freshly brewed grande Cappuccino and take out your phone to scan the QR code at the counter to pay for the coffee in Ethereum.

Suddenly, you notice that the coffee shop only accepts “bitcoins’’ and you can’t pay in ethereum. You still want to try your luck, so you scan the QR code, but it all ends with an embarrassment.

That’s a major problem in the blockchain ecosystem today, and we call it “lack of interoperability’’!

But with Binance Smart Chain, Xend Finance has taken away this challenge by enabling cross-chain asset transfers and messaging.

A Native Network Token ($XEND) and A Reward System:

Xend Finance has a native network token which is a tradable asset soon to be listed on the Binance exchange and can be used for carrying out various operations on the network.

Also, as users perform lending, saving, and other operations on the network, they receive $Xend rewards based on a reward distribution algorithm. The rewards reduce over time and this leads to scarcity, hence giving holders more value. You can read more on the Xend Token ($XEND) Reward System here.

Protocol Fees and Governance:

The native network token ($XEND) is used to pay for all protocol fees on the Xend network such as credit union subscription fees and service charge for default in group savings.

Also, as a Decentralized Autonomous Organization (DAO), Xend Finance is governed by $XEND holders using three (3) different smart contracts which allow the Xend Finance community to propose features, vote, and execute approved proposals. These smart contracts are: Xend Token Smart Contract, Governor Smart Contract, and Time Lock Smart Contract.

Key Benefits of Using Xend Finance

Removes Currency Volatility:

Xend Finance gives Individuals, groups, cooperatives and credit unions in countries with unstable currencies access to a global trustless and stable savings, lending, investing and borrowing network.

As users deposit their fiat into the Xend Finance network, this fiat will be converted to DAI, a multi-collateral stable currency which can be used to carry out different operations on the Xend Finance network.

DAI is pegged to the value of the dollar (1 DAI = $1), but backed by crypto native assets like ETH hence it maintains stability in value of savings and investment in the network.

Enables Cross-border Financial Operation:

Traditional (Centralized) and Fiat savings platforms are always limited by fees and cross border payment regulations which impedes investing in other countries. However, as a decentralized Credit Union protocol, Xend Finance enables anyone, group, cooperative or credit union anywhere across the globe to save, lend, invest and earn interests instantly.

Conclusion:

The soon to be launched DeFi platform ;Xend Finance offers individuals, Cooperatives and Credit Unions varying opportunities to maximize their return on investment while removing the barriers created by the traditional centralized financial system.

Not only does it remove the volatility associated with fiat exchange rates, it also enables cross-border savings, lending, borrowing and investment.

You can join the xend finance community on Telegram and Twitter for updates and announcements