We are thrilled to announce our investment in Demodyfi, an automatic market maker decentralized exchange on Moonbeam.
At Master Ventures, we delight in propelling innovative blockchain projects to greatness. Our goal is to extract every ounce of transformative potential from visionary innovators who base their work on blockchain and other technologies that challenge the status quo. MV’s primary objective is to fast-track the mass adoption of these technologies by empowering them through our ecosystem to help them grow into disruptive platforms that enhance our present and future living conditions.
Connecting traditional and decentralized finance
The widespread success of traditional finance was a result of two major factors; convenience and user experience. Having established functionality, traditional financial platforms focused on convenience and UI/UX designs in the late 2000s and 2010s, which saw their rapid acceptance and mass adoption. Thus, when we saw the idea behind Demodyfi, we saw an opportunity for mass adoption of DeFi and blockchain.
Demodyfi has critical features that we believe are essential in providing DeFi and DEX market demands. These features connect the flagship features of traditional finance to create convenience in the decentralized finance market.
True decentralization
Central to its services is Demodyfi’s commitment to the ethos of blockchain technology. The existence of centralization within blockchain, as proven by the recent losses following an abrupt outage of centralized exchanges, is detrimental to the overall health of the blockchain ecosystem. A central authority creates a weakness exploited by numerous entities such as governments, hackers, and certain market factors.
With true decentralization, Demodyfi can avoid all these problems. Furthermore, it attracts other benefits that increase its appeal in the market. For instance, because Demodyfi has a parachain in Polkadot, it can achieve proper interoperability by conveniently interacting with other platforms that also have their parachains on Polkadot. Demodyfi also uses the Bridge protocol that connects directly to other blockchains such as Ethereum.
A direct benefit of this is access to greater access to liquidity, thus increasing its potential users. Further, Demodyfi can implement a dynamic automated market maker platform because of the available liquidity and mitigate impermanent loss issues.
Interoperability and scalability
The inability to adequately scale to meet dynamic market demands fuels the high gas prices witnessed on Ethereum. Priority of transaction is given based on what users are willing to pay, which drives the transaction costs higher, making most transactions uneconomical.
Demodyfi solves this problem by utilizing assets from Polkadot and Substrate to achieve interoperability and scalability that will allow them to keep their transaction costs as low as possible, among other benefits. Polkadot’s support in Demodyfi allows for multi-bridge interoperability, enabling interoperability between chains regardless of their inherent features. This enables trading crypto assets from different blockchain protocols, allowing Demodyfi users to manage their crypto assets from their native DEX.
Crypto management is made possible by their unified account experience, which allows users on the platform to swap between wallets such as Metamask and Polkadot.js.
With Polkadot’s scalability and interoperability features, transaction performance on Demodyfi will be higher than current market offerings. Further, the platform can potentially create mitigating factors against market volatility because of Substrate’s treasury management system.
Another potential application of the synergistic capabilities of Polkadot and Substrate in Demodyfi is the creation of a sovereign wealth fund, which will help in the further development of the platform.
Non-custodial services
As earlier stated, the existence of centralization does more harm than good to the blockchain ecosystem. Demodyfi takes a non-custodial approach for its platform by allowing users to have complete control of their assets. The storage and use of digital assets are left to the user as the platform provides no storage options.
Demodyfi only works behind the scenes, providing options that lead to maximum yield by their users without compromising the platform’s security.
Why we invested
Master Ventures closely observes market situations and technology developments to decide on the projects we will potentially invest in.
A quick observation of the current situation in the decentralized market reveals unsatisfied market participants displeased with the many inconveniences present in most exchange platforms. Judging from the extensive permeation of DeFi, market participants are willing to take part in the market if they are equipped with better platforms.
Thus, investing in Demodyfi becomes an easy decision. It represents the future of DeFi and DEX. Focusing on the problems created by inadequacies in interoperability and scalability provides an option that the market will readily accept and adopt as part of their trading arsenal.
In addition to excellent functionality and unparalleled convenience, Demodyfi promises a user experience that will change UI/UX design in the blockchain ecosystem.
We believe that Demodyfi has the right tool-set to change the DeFi and DEX market outlook.
About Demodyfi
Demodyfi is a platform with a passion for building value by enhancing and innovating financial products in a fully decentralized way by creatively utilizing existing blockchain technology solutions.
It delivers decentralized financial services in a fully decentralized network whose control is fully decentralized, with each user contributes to the platform’s decision-making activities. The setup ensures transparency of all network activities, thus creating a trusting environment for its users.
Demodyfi also provides an ecosystem where decentralized users can gain tokens from platform activities and generate wealth from the tokens through decentralized exchanges.
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About Master Ventures
Master Ventures is a blockchain-focused venture studio helping to build the next generation of blockchain-based Web 3.0 system innovations within the crypto industry. Launched in 2018 by Founder and CEO Kyle Chassé, the company’s ethos can best be summarized in the acronym #BeBOLD: Benevolent, Open, Love, Decentralized.
Master Ventures co-creates with entrepreneurs and businesses worldwide to turn the best ideas into innovative and disruptive products. They do this by investing as strategic partners through offering advisory services to the projects they believe in. To date, Master Ventures has invested in over 40 crypto projects, including the likes of Kraken, Coinbase, Bitfinex, Reef, DAO Maker, Mantra DAO, Thorchain, and Elrond.
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