Relite is a decentralized, cross-chain lending protocol built on Polkadot. Relite aims to provide a platform where lending and borrowing is accessible to all and isn’t limited to any one blockchain. This cross-chain lending platform will enable users to lend and borrow with their native crypto in one protocol; something that the DeFi market is sorely lacking at the current time.
Solving DeFi’s Problems
The Relite team sees three key issues with the current state of DeFi that need to be tackled: interoperability, sustainability, and simplicity.
Interoperability
The lack of interoperability in the current blockchain ecosystem is one of the largest hurdles for DeFi to overcome. Relite is on track to create a multi-chain, interoperable future in which the segregation of blockchains does not exist. To achieve this aim, the team will utilize Polkadot and parachains, often seen as the best bet against chain maximalism (the belief that one blockchain will dominate long-term use).
By utilizing Moonbeam’s technical stack, the Relite team will be able to deploy their Solidity contracts to Polkadot. This will give access to major blockchains through one integration and allow the protocol to make use of Polkadot bridges, which enables chains to communicate with one another whilst retaining their technical sovereignty.
Sustainability
The huge growth of DeFi applications has brought about a rapid rise in fees on the Ethereum blockchain. This restricts accessibility and could also hinder further growth as potential investors are turned away because of the high cost of entry. Relite will utilize the high throughput and low transaction fees of Polkadot in order to enable a more accessible, faster, and open financial ecosystem.
Simplicity
Relite believes that crypto loans should be straight-forward and affordable. The team has developed a truly accessible interface where users, beginners, or professionals are guided through the process and receive smart notifications based on their behavior. This tailored experience enables users to easily deposit assets to supply liquidity or provide collateral to access a loan.
Tokenized Incentives
As well as these features and services, Relite Finance has its own token, RELI. The token has several purposes including governance, staking, and supplying liquidity mining rewards. RELI sits at the centre of the Relite ecosystem. The governance structure is that of a DAO (decentralized autonomous organisation) where the community decides on future integrations and fee levels.
Users are also rewarded for staking RELI. Holders will be able to stake tokens in the Reserve Fund, enabling additional rewards whilst compounding the security of the protocol. Users who stake their tokens in the reserve fund receive payouts from the loan margin proportional to their stake (currently this is set to 1%).
Relite Finance is positioning itself as part of the next wave of DeFi. What has been constrained to individual blockchains is going to become multi-chain and interoperable faster than many people think. The cross-chain approach of Relite means the project is ahead of the curve in this key aspect. Additionally, Relite will offer pools for dedicated Polkadot ecosystem tokens, instead of just more common Ethereum-based assets. Holders of DOT and related Polkadot projects will have dedicated lending and borrowing pools enabling high liquidity. This is unique to the Relite protocol.
Relite will also offer lower fees and interest rates for borrowers compared to other platforms. A key difficulty in using the Ethereum blockchain at the moment is the extremely high gas fees. By using Polkadot, Relite can provide substantially lower fees for contract execution. With all of these advantages, Relite Finance is well positioned to push DeFi forward substantially in terms of both innovation and accessibility.
Relite Finance has recently concluded its private token sale with investment from top funds like Master Ventures and Rarestone Capital. A public IDO for RELI tokens will be held on Paid Ignition with additional details to follow.
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