DeFi or CeFi? That’s a question to many newcomers to blockchain finance.
On the one hand, in order to get access to the financial service truly deployed on blockchain, or DeFi projects, decentralized wallets are required currently. But it is quite a challenge for newcomers to learn about the concept of private key, smart contract, gas fee and etc., or to make sure they are sending the right tokens to the right places at a right time and protecting their crypto assets from attacks.
On the other hand, though CeFi are easier to understand with design similar to that of traditional finance, they are operated off-chain at a centralized platform, raising concerns on the security of the assets especially when they could not track where their assets go to and who are using them.
Some CeFi projects are trying to find ways to connect with DeFi, but for all CeFi projects, users are using accounts from a centralized wallet of certain platform instead of holding their own private keys. Without a decentralized wallet, how could clients verify that the transactions are sent by them and check where their assets go to?
Let’s see how Matrixport deal with this problem when integrating with Compound.
Matrixport introduces the concept of “Lucky Number” for users to track their asset flow. When users want to supply assets to Compound, they will be required to fill in a 3-digit “lucky number”, which will be appended to the last 3 digits of “Gas Price” number in the corresponding on-chain transaction. After a successful top-up, a transaction hash will be generated by which the client could find his or her lucky number on the field of gas price. The gas price is going to be permanently stored on blockchain and thus cannot be tampered with, signaling that the transaction is successful and tokens are safely transferred. This creative integration with Compound allows DeFi users to save efforts in generating and learning how to use decentralized wallets, and at the same time, to enjoy a seamless and transparent decentralized finance service.
Moreover, with features like“lucky number”, Matrixport tries to explore a more accessible, open and transparent way for marketing campaign. For example, in the campaign of “Lucky Monday”, a fixing will be taken from the last three digits of “Ether Daily Price (USD)” (rounded to cents) published on the Etherscan website at 0:00 every Monday (UTC time). If the lucky number of the order matches the fixing, the client can get a reward bonus. Since the number is chosen by client and the fixing is written on-chain publicly, it is totally fair and transparent. These features allow Matrixport to freely design various campaign programs to attract users, and at the same time ensure a transparent operation, saving time in building everything perfectly with smart contracts on-chain.
“We are pleased to introduce DeFi projects Compound to our clients.” said Rong Lin, Senior VP and head of lending for Matrixport. “The solution still requires client’s trust to Matrixport as a centralized platform to begin with. But it is a step forward for us to bridge the two worlds of Cefi and DeFi, building an easier access for users to enter the digital finance world. Beyond that, we believe the path of traditional and blockchain finance would cross sometime in the near future.”
Enjoy seamless investment experience via Matrixport now: http://app.adjust.com/rrh9nss
Founded in February 2019, Matrixport is the gateway to the digital economy where you can trade, custody, invest and borrow crypto assets all in one stop. With rich industry resources and leading technology capabilities, Matrixport aims to create the next generation digital financial service platform. Our vision is to enable a more open and equal financial system using blockchain technologies.