How the Diversifi Protocol Can Improve Web3
It goes without saying that Web3 has great potential. While still “new”, it is already changing lives, creating entirely new sectors, and spawning new companies. One of its pillars is interoperability – the promise to solve the silos of Web2 with a new focus on cooperation and ease of use. However, the Web3 we have right now is not there yet. There are DeFi companies and protocols working to solve this, but the ecosystem still suffers from:
• Liquidity fragmentation caused by an overreliance on wrapped tokens and cross-chain bridges
• A lack of multi-chain wallets and services that can do more than just “swap” coins (i.e, Thorchain)
• Little connection between real-world assets and decentralized crypto, aside from real-world assets being used to purchase digital assets. In other words: value flows in one direction and is used only for trading purposes.
As a result, Web3 is struggling. There is limited access to liquid and sophisticated derivative markets. There is an absence of bidirectional asset flow (from real-world assets to crypto and back). There are several single-dimension tokens that cannot be improved with additional utilities or features.
At Diversifi, we are working to change this. We are building an open protocol that provides access to cross-chain and off-chain liquidity, primitives, data, and functionality. It is being built specifically to address these Web3 blind spots.
The Diversifi Protocol will offer:
• Interoperability across blockchain networks
• Interoperability between Web2 and Web3 applications
• Hybrid on-chain and off-chain apps
• Unprecedented access to financial primitives such as derivatives and real-world assets with stronger risk management
• And a better user experience throughout these services.
We are also committed to expanding access to autonomous tokens, one of the most exciting elements of Web3. Autonomous tokens are programmable assets that can independently execute actions. They can be used for:
• Managing financial risks through risk evaluation, portfolio management, yield farming, algo trading, tax withholding, and more
• Automating social impact such as through carbon offset purchases, charity donations, voting (especially DAO voting)
• Enforcing security policies around custody, multi-sigs, and blacklisting and whitelisting addresses
• And more
In the next posts, we’ll talk more about why the existing interoperability solutions don’t fit Web3’s vision, and why the Diversifi platform is so unique.
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