DeFIRE: A Catalyst for the Future of Finance
Decentralised Finance represents a new era of finance. It enshrines the right of the individual and removes the intermediary, thus, removing the monopoly that banks and traditional financial institutions have over financial services.
In place of a central authority with a centralised ledger, there exist distributed ledgers meaning every participant has access to every transaction. There is no longer a need to trust banks or to provide so much personal data to a third party.
Blockchain technology will bring much needed light to an industry cloaked in shadows and obscured from the general public.
At the initial point of entry, the only requirement is an internet connection. The significance of this cannot be overstated.
In 2017 the World Bank estimated that 1.7 billion people are unbanked. Yet most of these people have access to a mobile phone and internet connection.
DeFi will offer financial services to those excluded by the current system, or for those who do not want to partake in the current system. DeFi will offer to these people all the traditional services offered by banks and eradicate the barrier for entry found in traditional finance.
There is a general assumption that banks are ‘too big to fail,’ and this has been proven to be a false assumption, most recently in 2008. Due to a lack of options, people continue to use their services.
DeFi mimics the services found in traditional finance such as borrowing, lending, and trading. This is a natural progression; as any new idea must first prepare itself by understanding all of that which came before. It must digest these earlier concepts and try to draw links between them, meditating on the links until finally a new idea is born.
DeFi has digested the services offered by traditional finance, drawing a link between them and decentralisation. A new idea has been born, taking the utility of the old and mixing it with the transparency of the new.
Welcome to DeFi.
What Value Do We Add?
DeFIRE is a multi-dimensional protocol. We aim to innovate finance in primarily two spheres: the first being fund management, and the second being lending.
The general oversight of assets, where assets are used to generate a return, represents an area of opportunity in DeFi. For ease of understanding, consider the mutual fund, the distant cousin of the BLAZE protocol.
A mutual fund offers average investors the ability to pool their capital into a professionally managed fund. BLAZE keeps the notion of aggregating capital but expands it further.
BLAZE is democratised, which forms the major philosophical difference from traditional financial tools. Every participant can see exactly how their funds are being deployed and, if desired, make suggestions and vote on the future path of the protocol by participating in the DeFIRE DAO governance.
To understand the true value of a deployable investment strategy within DeFi, first it must be appreciated how swiftly this ecosystem evolves. What existed yesterday shall be replaced tomorrow. Through this struggle the best protocols will rise to the top, their hands bloody, and their reputation hard fought.
There is also increased volatility within DeFi compared to traditional finance, with intraday swings that would cause many traditional investors incredible mental strain. BLAZE frees investors from this mental strain by managing their investments for them.
It is the job of the BLAZE protocol to explore this vast wilderness of DeFi, find the most profitable ventures, and return this strategy to the participant as a single point of contact. We remove the complexity so that everyone can invest in DeFi.
Our mission is to bring DeFi to a larger audience, and to do so it must be accessible by all. The containers will be allocated a risk level dependent on its constituent elements, and thus the user can choose according to their personal risk tolerance.
We transfigure active yield generation for the participant into a low touch passive investment interface.
Banks assess the credibility of an individual, and thus decide whether to offer a loan or not. They will check your credit score, your income, and your assets to decide whether they deem you will be able to repay the loan.
Decentralised protocols have done away with this by allowing any user to obtain loans through collateralising their assets. Most protocols are over-collateralised; it is necessary to deposit more than is loaned. This is to make loans more secure, and to prevent liquidations if the market moves.
DeFIRE has decided to go beyond what is already offered. Our loans are over-collateralised, but they run on receipts from deposits in the BLAZE protocol.
In typical decentralised lending protocols you must put your assets to sleep to borrow against them. With DeFIRE’s IGNITE protocol, loans can be taken out against funds deposited in the BLAZE protocol, meaning that your assets are still working and doing what they should be doing ― generating returns.
Further, the loans will repay themselves from the yields generated by the BLAZE container. Participants will be able to take loans out against their active assets which will repay themselves over time.
In It for the Long Run
DeFIRE wants to facilitate a journey to financial freedom for our participants. Our protocol introduces a true notion of long-term financial planning to a constantly evolving landscape, capturing the best yield generation opportunities and simplifying them.
We bring risk assessment to DeFi, an area that is sorely lacking, through the analytical breakdown of our containers in a simple and intuitive user interface.
We also offer active asset loans strategies, as well as an academy to improve the financial acumen of our participants.
Our protocol is aimed at improving the accessibility to Defi and the financial health of all our participants. We want our participants to grow alongside us, to improve their financial literacy, and to generate wealth.