In the crypto community, there exists a number of different connectivity needs. These needs include the connectivity between assets and blockchains, between users and blockchains, and between different service providers and their users. However, many of these connections are unsystematic and extremely inconvenient. FinNexus hopes to solve this issue and make the connection more unified, user-friendly, and generalizable. In terms of connection here, we’re not just referring to the technological connections but also business connections. So in a sense, FinNexus doesn’t just focus on its technological protocols but also its business protocols. FinNexus is actually a collection of multiple protocols put together which is what composes their ecosystem!
The Objectives of FinNexus:
FinNexus has quite a few objectives that it hopes to achieve, these include:
- It will be easier for participants to look for, manage and acquire blockchain-based assets (Connection between users and blockchains)
- It’s easier for asset owners to conveniently offer on-chain assets (Connection between assets and blockchains)
- It will be easier for OTC platforms, brokers and exchanges to find users and provide them services (Connection among service providers and their users)
- All the participants above can use FinNexus in an open, transparent and equal way. So that it can fulfill the requirements of diversity, convenience and value
The Three Main Connections of FinNexus:
The connection between users and blockchains
FinNexus is an application layer protocol for decentralized financial services which will allow users (developers, service providers, and project participants) to easily interact with the blockchain. FinNexus has a strong focus on interactions related to financial services. The application layer protocol will connect users at one end and connect various public chains and second layer networks on the other end. With this protocol, it will remove a lot of the friction that we encounter when using blockchain based protocols.
The connection between assets and blockchains
FinNexus acts as an asset channel for the blockchain world. In the traditional economy, assets would need to flow in between different chains and also different entities. These flows may create technological barriers and also commercial and legal barriers. With FinNexus, the platform hopes to eliminate these barriers and establish asset channels that allow for a frictionless flow of assets. These asset channels will satisfy the demand for asset diversity by including all kinds of assets. This will provide users around the world with the ability to choose from different products. Additionally, the channels will also help provide a more convenient experience due to the increased asset liquidity. The liquidity will help attract more users to participate in the platform and this can lead to benefits as the addition of more users will help improve the experience for all!
The connection among different service providers
FinNexus will connect service providers with their users and also allow for collaboration between service providers. With the continuous development of the crypto industry, there will definitely expand into more subdivisions. The trend of multiple service providers being involved in an asset’s life cycle is definitely becoming more and more obvious. This will lead to an increase in the need for collaboration between several or many different service providers. As of right now, collaboration still relies on traditional trust-based systems since the trustless blockchain infrastructure is still immature.
FinNexus aims to provide a transparent, standardized, and trustless means of collaboration between different service providers. So the platform hopes to allow providers to work together in a secure and efficient way. FinNexus will also connect settlement services, trading platforms, brokerages, and a wide range of other service providers together.
The Structure of FinNexus
The structure of FinNexus can be split into three parts. The first is the technological connection layer which will serve as the hub for information transmission. This layer will be in charge of the flow in and flow out of information of FinNexus through the different hubs. The second part is the rule layer for the formal definition of DeFi use case logics. This layer will have a core set of rules available for use and will be open to the public for extension. The third layer is the external system layer which refers to all the external systems that are related to the DeFi ecosystem. Instead of building DeFi applications and systems from scratch, FinNexus hopes to connect various DeFi projects to further enrich the ecosystem.
The $FNX Token
FinNexus has its own utility token known as the $FNX Token. This token is a transferable representation of attributed functions specified in the protocol of FinNexus. The token is designed to play an important role in the functioning of the ecosystem and will also be used as the primary utility token on the platform. FNX is a non-refundable functional utility token that’s use will be as a medium of exchange between participants. The main purpose of FNX is so that users can have a convenient and secure mode of payment in the ecosystem.
The token is not meant to be accepted by the public as a payment for goods and services. The token may only be used in the FinNexus ecosystem, and ownership of FNX will have no rights other than the ability to enable interaction within their ecosystem. Moreover, without FNX, there would be no incentive for users to expand their resources or even participate in activities in the ecosystem. Following the development of community governance in FinNexus, FNX will also be able to be used for voting on the platform for features that matter to the community. So all FNX holders will be able to partake in the voting.
Are there fees with the token?
In order to use FinNexus, the users must pay fees. However, if users use FNX to pay, the fees will be discounted. 50% of the fees collected are then used for FinNexus operations, 25% are used for incentives (for parties involved in asset trading and community development), and the remaining 25% will be used to contribute to the buffer fund (asset insurance).
Wait… inflation and deflation?
In order to follow the success of Bitcoin, FinNexus will follow a similar economic model to bitcoin where it will be a combination of short term inflation mixed with long term deflation. The actual level of inflation will be dependent on the level of usage of the FinNexus platform. This usage can be measured by the ‘fee scale’ which is an indicator that derives from the fee data. However, different from the Bitcoin model, the FinNexus model will be able to automatically adjust according to the usage of the platform.
The Future Development Plans of FinNexus
FinNexus has extremely ambitious goals to become one of the leading platforms. It has already planned out ways to improve its products in order to meet the needs of the masses. And with various partners behind them, it won’t be a surprise to see FinNexus succeed.
New York-based venture capital firm Union Square Ventures (USV) announced that around 30% of its 2021 Core Fund will go to crypto-related investments. Andy Weissman,
Nasdaq-listed Marathon Patent Group announced Monday that it has purchased around 4,812.66 Bitcoin (BTC) for about $150 million, as another US public company adopts Bitcoin
The United States government has updated its crypto Anti-Money Laundering (AML)/Combating the Financing of Terrorism (CFT) laws, as the prices of cryptocurrencies has been reaching
Yearn.finance’s core contributors and community members have submitted a proposal to increase the supply of YFI by 22%, or minting additional 6,666 tokens, worth around