We are very proud to announce our investment in Relite Finance, a decentralized, cross-chain lending protocol built on Polkadot.
Master Ventures is a Venture Studio that believes in radically transforming the way our species lives and operates on our planet through blockchain and other disruptive technologies. We invest in projects we believe in to use our expertise and know-how to develop them further, make them grow, and scale them for potential mass adoption.
Redefining with DeFi
Since inception, Relite Finance has been on our radar. By challenging the status quo of the DeFi ecosystem, Relite is set to enable a truly accessible, interoperable, cross-chain financial ecosystem.
By using the full power of DeFi and the Polkadot blockchain platform, the tools to do this are now within reach, the team behind Relite is working hard to create a protocol based on three pillars.
It is no secret that there is a lack of interoperability in the current blockchain space, which is one of the biggest problems to solve to build a fully decentralized, open financial system. More and more users are looking to find simple ways to access the market however are met with downsides that include delays in transactions being confirmed, high fees, and an unfriendly user experience.
Luckily, new platforms like Polkadot, with unique parachain and cross-chain capabilities, are all about bridging the gap between different blockchain ecosystems. Relite is being built on Polkadot and will take advantage of these key features to create an easy path to deploy contracts from other blockchains such as Ethereum across to Polkadot in one simple integration whilst maintaining their technical sovereignty.
Ethereum is currently the most popular blockchain development platform out there. However, it suffers from very high gas fees making it inaccessible to many because the fee one has to pay for a small transaction can be half as big or even bigger than the transaction itself.
Another problem for users in the crypto space is related to borrowing loans and the high levels of collateral needed by a user to be able to do this. As of today the average collateralization required from a user to borrow a loan is 180%. This is not sustainable and restricts many who do not have this kind of liquidity from further exploring the market and, ultimately, accessing the new, decentralized, future of finance.
By utilizing the high throughput of Polkadot, Relite will not only very offer low transaction fees but also loan liquidity in DOT, ERC20, NFT, and other assets to provide lower collateral requirements for users than what is currently available today. This will be achieved by streamlining a de-risking protocol with a one-of-a-kind Reserve Fund that ensures a better collateral ratio when it’s needed most and acts as a safety cushion during a shortfall. The more capital that is staked in the Reserve Fund, the more secure the protocol, and the larger the rewards for the community. Furthermore, as the loans mature, the implementation of special terms will benefit both lenders and borrowers alike through improved terms.
Simplicity as a core focus point
The goal of Relite’s unique protocol is to make lending and borrowing services in the DeFi space straightforward, easy, and affordable. With Relite, it only takes “3 clicks to unlock, open, and access financial solutions”. These solutions can be anywhere between users who want to borrow loans, lend liquidity by staking the platform’s native RELI token, and enable them to earn passive income streams.
Why We Invested?
At Master Ventures, we are watching the Polkadot ecosystem closely for groundbreaking projects just like Relite that will improve the overall cryptocurrency and blockchain market as a whole and allow it to scale to new levels.
We understand that in its current state and reliance on development platforms like Ethereum, the cryptocurrency space suffers from scalability issues that make it inaccessible and limited in gaining more momentum and achieving eventual mass adoption. Issues surrounding high fees, liquidity, and access to collateral in the form of loans are all areas that need to be improved in the long run so that more people can enter the market with confidence and enthusiasm. Through the use of Polkadot and the aim to build a multi-chain, interoperable, future, Relite will set out to solve the existing problems of today by providing a user-friendly and affordable solution that allows users to access liquidity loans and passive income streams with ease in a secure and protected environment. This will help “tear down the barriers of DeFi.”
About Relite Finance
Relite Finance is a decentralized, cross-chain lending protocol built on Polkadot that redefines crypto money markets.
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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