On August 28th, at the 2020 New District Trend Blockchain Technology Finance Summit jointly organized by Huobi Group, 36Kr, and Bella Protocol, a one-click open financial platform, and DeFi incubator DeFictory held a special DeFi evening party. Many DeFI practitioners Gather here with eco-leaders.

At the event, Felix Xu, co-founder and CEO of the ARPA & Bella protocol, delivered a speech, giving a systematic introduction to the current situation of the DeFi market, the pain points of DeFi users, and the problems that Bella will solve.

Proven team starts second answer sheet

Bella Protocol is positioned as an open financial platform, and its flagship product is an aggregated DeFi product, incubated by the star team ARPA, which is deeply involved in privacy computing.

ARPA was established at the end of the bull market in April 2018. After a year-long capital winter, it came to the industry's warming period. At present, ARPA has landed on Binance, Huobi Global, Bithumb, Gate.io, KuCoin, MXC and other world-leading exchanges; the team participated in the formulation of IEEE international standards and national standards for secure multi-party computing; cooperated with Sinochem Group, JD Digits and other first-line enterprises Reached landing project cooperation; has an international community in 11 languages. From the second half of 2019, ARPA has been exploring the application of threshold signatures in the field of cross-chain asset locking. Once implemented, it will greatly enrich the types of assets on the chain.

However, in the process, the ARPA team found that the current DeFi infrastructure and applications have too high a threshold, making it difficult for new users to get started. After in-depth market research, the team feels that optimizing the existing product experience, reducing participation costs, and allowing a large number of cryptocurrency users to enter the DeFi ecosystem are more urgent problems that need to be solved than cross-chain BTC.

With this sense of mission, at the end of February 2020, the team began to promote the Bella Protocol project internally. Bella will start from the traffic side, promote the growth of DeFi users, and create synergy with ARPA in the field of cross-chain asset locking.

"Exodus" that solves user pain points

Although the DeFi market is very hot now, there is a significant difference between Bella Protocol and the hot products and teams in the market.

Since November 2019, the Bella team has been an in-depth user and pioneer of DeFi, and has provided liquidity for various DEX and lending agreements. After the 3.12 plunge, the Bella team judged that the underlying assets of the encryption industry are at the bottom of the cycle, and the innovation of overseas DeFi projects deserves attention. However, after in-depth research, they found that the user penetration rate of DeFi is still very small.

The Bella team conducted two in-depth surveys on cryptocurrency users at home and abroad in March and July 2020, obtained first-hand high-quality information on the market, needs and pain points, and released"2020 Global DeFi User Survey Report", the report pointed out that: high fees, poor user experience, and high threshold for understanding smart contracts are user pain points that need to be solved urgently.

At present, DeFi lending is still a game of the small circle of geeks in Silicon Valley. Due to the abnormal development of giant whales and leverage, the DeFi industry needs "people's DeFi" and "Exodus".

Felix Xu, co-founder and CEO of the ARPA & Bella protocol, said.

One-Click products lower user threshold

Bella is positioned as a "one-stop digital asset management institution". It realizes the traceability of financial services through access to DeFi protocols, and improves its openness and transparency. It also optimizes user experience through partial centralized management and lowers the threshold for entry users. Therefore, Bella belongs to HyFi (hybrid finance) between DeFi and CeFi.

Bella will launch four products with different positioning and risk preference, namely "Bella 1-Click", "Bella Lending", "Bella Flex Savings" and "Bella Robo-Advisor".

Among them, "Bella 1-Click" is the most suitable for general users. Users can access various DeFi applications through Bella 1-Click without having to bear Gas fees. Felix Xu said that 1-Click products will combine the convenience of hosting services and the transparency of decentralization under the premise of ensuring security.

At the same time, Felix revealed that a series of Bella product matrices are already undergoing code audits, and the first product will be launched at the end of September, and liquidity mining will start.

The Rise of Stablecoins Brings Opportunities for "Out of the Circle"

Felix believes that the biggest driver of DeFi asset management is stable currency. Stablecoins are undergoing a change from a trading medium to a savings tool. The credit cycle in the encrypted field is shorter, and the lending rate itself is far higher than that of traditional industries. At the same time, DeFi actually eats up the profits of some trading platforms and distributes them to liquidity providers. The rate of return of stable currency is stable at more than 20% in the medium and long term, which can attract deposits from outside the circle.

Blockchain is a paradigm shift for traditional finance. In the future, the emergence and popularization of central bank digital currency (CBDC) will drive more mainstream assets to the chain, and DeFi will also enter the field of public awareness, absorbing funds from outside the circle, and the development of DeFi will even surpass the public chain that carries it. Because DeFi asset management is just what stablecoin holders need.

In this regard, Felix firmly believes that the market value of stablecoins will exceed the current market value of Bitcoin, and the total market value will grow to 100-300 billion US dollars within five years. Benchmarking the traditional financial Money Market Fund, DeFi will grow into a market worth tens of billions of dollars.

Team Bella's DeFi resolve

Felix Xu said that Bella, as a cryptocurrency asset management institution, has a clear business model and a product matrix that can effectively solve user pain points.

Bella will use delayed dividends to encourage loyal users to contribute to the platform. Users will need to pledge the Bella ecological governance token BEL for a period of time and participate in community voting before they can withdraw their dividends. As the market changes in the future, the community may vote to change the way and rules to motivate users.

In order to carry the overall value of the Bella ecology, the project will issue 100 million BEL as the ecological governance token. In the design of the token, Bella also adopted a mixed model, mixing some token economic models that are easy to capture value and not easy to capture value into the functions of the token, and its functions include staking BEL and actively participating in project governance Dividends for users, fee discounts for users holding BEL, and participation in staking, governance and voting.

Finally, Felix said that the DeFi industry will enter an era of product competition and refined operations, which is what the ARPA team is good at. Bella is confident and determined to increase the penetration rate of DeFi products from the current 1% to 10%, and promote the development of the industry. development of.