OroPocket, in collaboration with Matic Network, has announced the arrival of Open Finance Protocol or OpFi so that the users can seamlessly invest in real-world assets.
Open Finance is a fintech protocol that allows the user possession of the real-world assets on the blockchains. It also allows the developers to build applications on top of it. Since it is open, the protocol enables seamless integration of the other on-chain apps. The OpFi will allow the institutional investors to participate in the blockchain crypto and DeFi economy as it offers high liquidity and instant settling. The OpFi protocol successfully bridges the gap between Decentralized Finance or DeFi and traditional finance. Open Finance encourages participation through the creation of yield on Gold and stocks. The long term investors are thus able to create added value on their assets.
What are the five principal components of the Open Finance Protocol?
Tokenization of the real-world assets
Assets and commodity trading is a multi-million dollar market, and blockchain plays a key role here. OpFi allows the tokenization of the real-world assets, so they are easily traded and transferred anywhere globally.
Instant trade
The protocol allows the immediate exchange of assets without any counterparty risks or price slippage. The user is allowed to trade directly with the smart contract of the asset.
Low-cost loans
The OpFi protocol allows users to collateralize loans at a low-interest rate of 2 to 5%. The users get encouraged to hedge their bets.
Universal chain support
Since it is open, the protocol will allow the sharing of assets between the different chains, and the users get the best of both the worlds. They get access to more assets and can transact at a low fee.
Earn the yield on real-world assets
The majority of real-world assets like Gold and Silver do not earn a person any interest or revenue just by holding them. However, Open Finance will change all that. One can stake his assets as collateral and earn the yield from it.
