Everyone is talking about DeF. But the niche threatens to become a kind of ICO 2.0. Can Wing bail out the industry?
„A Credit-Based DeFi Platform, Supporting Cross- Chain Interaction“. The blockchain ecosystem Ontology is promoting its first use case „Wing“. The Bitcoin Billionaire software advertises with some unique selling points. The DeFi product does not rely on just one crypto currency for yield farming, but instead throws a whole bunch of different coins into the collateral pool. In other words, Wing supports so-called cross-chain swaps, i.e. the exchange of certain coins without third parties.
In addition, the team behind Wing does not believe in the tradition of overinsuring decentralized loans. Typically, borrowers have to secure borrowed coins in a 2: 1 ratio with other crypto currencies, such as Bitcoin. This security – one speaks of collateral – serves as a kind of emergency egg if leveraged trades go wrong.
In order for DeFi to develop its potential, the services must also be accessible without overcollateralization,
it says in the press release.
An automatic credit scoring system should fix it
Instead, Wing wants to offer tailor-made loans with the help of the Ontology platform and a specially set up decentralized autonomous organization (DAO). This is also made possible by an automated system that assesses the creditworthiness of the borrower. This credit system, also known as OScore, assesses the creditworthiness of users based on past activities on the platform. According to Wing, the DeFi platform will go live at the beginning of September. However, one does not commit to an exact date.
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In any case, the white paper has already been published. On the first of September, Ontology founder Li Jun congratulated the project, which relies on the Ontology-based credit rating system OScore:
Ontology is really excited to work with Wing to advance our shared vision of accelerating the DeFi movement around the world. […] By using Ontology’s OScore, the risk for lenders using Wing’s technology is significantly reduced, as […] due diligence can take place. Ontology would like to congratulate Wing on the publication of its white paper and looks forward to making the project a success.
Where are you going Défi?
Meanwhile, the negative headlines about the “next big thing” in the crypto sector are continuing. DeFi project SUSHI allegedly shot the bird last . After the ongoing hype and the hunt for quick money raised the price of the cryptocurrency, which was only launched at the end of August, to over 11 US dollars, the meme coin plunged into bottomless just a few days later. The reason was exit scam rumors about founder “Nomi” who allegedly had sold his entire inventory to SUSHI. The result: countless cheated crypto adventurers, a new multimillionaire and the realization that DeFi is well on the way to becoming the ICO debacle of the current bull market.