DeFi or Decentralized Finance is a term given to the financial services that have no central authority controlling them, unlike banks in which decisions are usually taken by a single person or a company.
As we all are aware DeFi has been the trending topic of 2020 in the crypto space. The Total Volume Locked (TVL) in the DeFi platforms has increased from $800 Mil in January 2020 to $25.43 Billion dollars by JAN 2021. If you want to learn more about DeFi and CeFi click here.
This DeFi boom has led to congestion in the Ethereum network which in turn led to the skyrocketing of the gas fee. Due to this, it is very hard for a normal user to make transactions on platforms that directly run on Ethereum like Uniswap, Compound, etc.
Ethereum 2.0 is a very promising solution but we can’t expect it to bring major changes in the short term immediately after the launch. it will be effective only in the long term in my opinion. So, until then Layer 2 solutions will be the go-to platforms.
EasyFi being a universal lending protocol. It is built on the best layer 2 solution currently available i.e. Matic, which Ensures cheaper and faster transactions. This makes EasyFi accessible to a large number of users with absolutely negligible congestion in the network. In short, EasyFi helps in making DeFi more accessible.
EasyFi (Version-1) started as a fork of Compound Finance. But unlike Compound Finance which runs on the Ethereum chain (Layer-1), EasyFi runs on the Matic network enabling collateral-based secured loans on the Layer-2. According to the team, more updates will be made to the protocol in the future
EasyFi is one of the first projects to be listed on the Binance innovation zone and also one of the first less than a 2 Million Market Cap token to be traded on Binance. This shows how big actually EasyFi’s potential is. It has one of the Best UI among all the DeFi protocols that are eye-catching and easily understandable by even new users.
WazirX x EasyFi Giveaway
On January 27th EasyFi’s $EASY is listing on India’s biggest and most trusted exchange WazirX. Users will be able to trade, buy, sell and trade. This will give some great exposure to EasyFi. To celebrate this listing EasyFi and WazirX are doing a grand giveaway from 27th Jan 2021 to 1st Feb 2021. Participate and win huge prizes. Learn more about this giveaway here
Key features of EasyFi Network
1. Secured (Collateralized) Loans and Under collateralized Loans
EasyFi offers basic Collateralized loans and also Under collateralized loans. Under collateralized loans users with a good Trust Score (a decentralized credit score rating mechanism built by koinfox ) will be able to take loans even with less collateral.
There are billions of people around the world that are being exploited by the massive interest rates by the local financiers and also people are not able to get quick loans. Addressing this issue EasyFi will provide micro or small loans quickly and with more meaningful interest rates for various purposes like medical emergency, for businesses, etc.
3. Credit Delegation
EasyFi will launch a Credit Delegation mechanism as one of their future products where loans will be Trust-based i.e. both the parties (lender/borrower) know each other or accept the level of risk which depends upon the Trust Score of the borrower.
4. Credit Default swaps (CDS)
EasyFi Network will bring insurance to DeFi with the help of CDS which will enable the loan suppliers, especially of a certain size, to be able to convert those loans into tradable assets and sell them to companies or investors customers who are willing to cover the risk. CDS will help in creating a money market for many passive income based products backed by trusted loans making it less risky for the users.
Dual Farming Program (DF2)
On 22nd November EasyFi Network launched their new incentivizing program called Dual Farming Program which is the first of its kind where users were able to earn $MATIC by staking $EASY tokens. Matic which also the partner of EasyFi allocated a portion of their native tokens helping in incentivizing the users. Around 5 million $MATIC were distributed in this program in a cycle of 2 months.
They also launched dual farming with router protocol which was quite successful. Recently they launched a new dual farm of $BOR tokens by partnering with Boring DAO. Currently, as of 26th January 2021, two Dual farms are live: Stake $EASY and Farm $BOR, Stake $EASY, and Farm $Easy. You can participate in these farms here.
In the Future, EasyFi will partner with more new projects enabling the holders of the $EASY to choose the token that they want to earn by staking $EASY tokens. This method will allow the $EASY token holders to make passive income and also gives a use case for $EASY. Here is a step by step guide to participating in EasyFi’s Dual Farming Program.
EasyFi Network vs Compound Finance
EasyFi is a universal layer 2 lending protocol for digital assets built upon the most promising layer 2 solution, Matic Network. Due to this, the transactions are very fast and very cheap compared to the DeFi protocols built on Ethereum main chain like Compound Finance, etc. EasyFi also has extra incentivizing programs like Dual Farming to reward the $EASY holders which are not present in Compound Finance or any other DeFi protocols.
$EASY tokens will also be used as a cross-chain settlement instrument in the various bridges and share the liquidity with various other sidechain and main chains like Polkadot, Binance Smart Chain, etc.
Here is a detailed comparison of EasyFi Network and Compound Finance as of 26/01/2021 :
MATIC Network is the main and important partner of the EasyFi network. Using the MATIC Layer-2 protocol EasiFy was able to build a Lending money market protocol that offers fast and low-cost DeFi transactions making it an efficient and reliable DeFi protocol. Also, MATIC is the first project to join EasyFi’s Dual Farming Program about which I explained in the previous section.
EasyFi recently announced a partnership with Chainlink where it will be using the decentralized oracle network of Chainlink to securely access the decentralized tamper-resistant price feeds within their DeFi lending protocol.
$EASY Token Utility
EasyFi’s native token $EASY has the following use cases :
1. Staking rewards
With the help of $EASY token different projects can launch their lending and borrowing markets on the EasyFi Network and hence will enable them to reward the users to stake $EASY tokens for earning rewards in form of tokens of their respective markets and interact with corresponding markets on the protocol.
$EASY token will enable the users to take a part in the protocol’s governance thus helping EasyFi in taking important decisions as it is going to become a DAO in the near future as mentioned in their white paper.
3. Protocol Incentivization
This will enable users to earn rewards from time to time and provide them with voting rights in the upkeep of the protocol and continuous development.
4. Cross Chain Settlement
$EASY tokens will be used as a cross-chain settlement tool to communicate and share liquidity with various other sidechains and main chains like Polkadot, Binance Smart Chain, etc.
5. Cross Market Interaction
EasyFi is the first DeFi project to launch a Dual Farming Program. This feature enables the users of the EasyFi to earn some rewards by interacting with various projects that are being launched on EasyFi Network.
How to Buy $EASY?
If you want to pick up some $EASY I will recommend you to use the decentralized Exchange, Uniswap which is safe and best in liquidity. But just in case if you want to avoid high gas fees. Then you can find $EASY on Binance which is the world's largest centralized cryptocurrency exchange and on Wazirx which is India's largest and best cryptocurrency exchange.
Upcoming Features of EasyFi for Q1 2021
1. EasyFi Access
Complete set of new and advanced versions of smart contracts for liquidity mining, yield staking with an intuitive UI/UX. A dedicated platform for new DeFi projects and potential partners to conceive, build and execute various community engagement and incentivization programs. There will also be exclusive access and perks to EASY holders.
2. Multi Chain Expansion
EasyFi team for planning for integration and launch of the main lending protocol on a completely new blockchain network alongside deeper integrations with existing Matic and Ethereum network. EasyFi Access program will also launch on new blockchain networks with deeper ecosystem partnerships.
3. Tokenized Legendary Asset Markets
Easyfi team is bringing Layer-2 derivatives as collateral markets and also they are planning to integrate tokenized shares, stocks, commodities, precious metals, and more as collateral markets on the main Lending protocol.
4. EasyFi: Reinvigorate Version
The new version of EasyFi is going to be released this quarter with new UI/UX and many more interesting features that will increase the use cases of the $EASY. A new dashboard board for real-time analytics is also being developed.
5. Multiple Wallet integration
Expansion of the product ecosystem with the integration of new wallets to connect with the main protocol. Deeper integrations with various DeFi platforms for easier access to EasyFi lending markets and EasyFi Access program