TezFin Launches Decentralized Lending Platform on Tezos – Blockchain News, Opinion, TV and Jobs

StableTech, a wholly owned subsidiary of the Tezos Stablecoin Foundation, announced the official launch of TezFin (Tezos Finance – tezos.finance), one of the first decentralized lending platforms on the Tezos blockchain. TezFin operates through a series of interest-bearing “loan pools” where users can deposit funds and earn capital growth, and even collateralize those funds to borrow capital and accumulate debt that needs to be repaid. The loan rate and interest rate are automated and respond to supply and demand factors of lending and borrowing in the protocol.

TezFin’s impact is expected to scale the Tezos DeFi ecosystem by enabling a system of credit, thus completing the key component of any scaled DeFi ecosystem. For a period of a few months last year, several DeFi projects on Tezos demonstrated the ability of the Tezos DeFi ecosystem to attract generally scaled liquidity on par with larger DeFi chains through yield farming incentives. However, without lending platforms like Aave or Compound Finance, the Tezos DeFi ecosystem was unable to hold this liquidity, and it quickly dwindled when yield farming ended. TezFin now provides a tool to maintain liquidity on Tezos DeFi by allowing all elements of DeFi to scale to Tezos as well as commercial sectors.

By supplying Tez (XTZ), Tezos’ native currency, as well as other Tezos tokens to TezFin Lending Pools, suppliers can earn compound rewards based on a variable interest rate determined by the supply and demand of each asset pool. Users can also collateralize some of the Lending Pool positions and borrow other tokenized assets.

“No modern economy without credit can ever hope to scale, and neither can a DeFi ecosystem without credit,” says Kevin Mehrabi, Founder of StableTech and key contributor as CEO of Wealthchain. “Right now, the market size of Tezos DeFi is about the same as Ethereum DeFi before its completion with the entry and scaling of their own lending platforms – Aave and Compound. By completing the Tezos DeFi ecosystem, TezFin will not only enable the exponential scaling of all Tezos DeFi; it will create a multiplier effect, thereby enabling the scale of all other Tezos economic sectors as well, including NFTs and gaming.”

Several loan pool markets have already been launched on TezFin, and many more will be added in the coming days.

The launch of TezFin builds on momentum growing on Tezos as a thriving proof-of-stake blockchain with a growing reputation as the blockchain of choice for brands and institutions. Recently, Tether, the world’s largest stablecoin, announced its integration with Tezos and its availability for trading on Bitfinex and depositing on Binance; Objkt.com, the largest Tezos marketplace, displaced $100 million in revenue and generative art platform fx(Hash) overtook Ethereum-based Art Blocks in total revenue. Additionally, network usage is increasing this year, with a 12 percent increase in smart contract calls and a 94 percent increase in transactions, according to a recent report.

StableTech is a consortium of several contributing member firms in the Tezos ecosystem, including Wealthchain, Cryptonomic, OneOf, and Pyratz Labs. Stabletech has implemented other advances in the Tezos DeFi ecosystem, including USDtz (the first USD stablecoin on Tezos), ETHtz (the first ETH wrap token on Tezos), and TEZEX Bridge (the first P2P cross-chain bridge on Tezos ).

To learn more about StableTech, click here.

More information about the Tezos blockchain can be found here.

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