Rikkei Finance is giving a new face to decentralized financial services by making them available to many stakeholders and spectators. RiFi’s mission in the crypto lending space is to change the narrative and create a structure that guarantees high efficiency and transparency.
The lending protocol follows a certain procedure involving a few processes. These processes include token selection, supply/borrow interest rate calculation, collateral factor measurement, withdrawal limitation, and further liquidation processes. We will explain all of these processes to help you grasp the full idea of the lending protocol and how it operates. That way, you can rest assured you won’t be left behind.
How We Guarantee Transparency
We have developed efficient ways to ensure a fair balance between borrowers and suppliers. We understand the importance of protecting the interests of the two parties adequately. As such, we have a 5-stage asset selection process through which we select the most viable assets that can serve our users’ needs.
The first stage is the data crawling stage. The data crawling technique is relevant for collecting meaningful data on assets, including volume, ratio, and market cap. Knowing these will influence our decision in determining the assets that make it into our next stage, which is the filtering stage.
Following data analysis, we will filter the assets based on the metrics above. The score of each asset will determine how they are measured and ranked with us, which also influences the priority which they attract.
Thereafter, stage 3 focuses on asset evaluation through more technical metrics such as current ratio, turnover ratio, and Hui heubel liquidity ratio. The evaluation stage uses a self-developed Liquidity Ranking System, ensuring that only the most liquid assets scale through the assessment.
Stage 4 involves the analysis of the assets and the final selection of those that will make the platform. The analytical stage is high-end, with its processes facilitated by our experts. This means that the assets that scale beyond this stage are the best ones.
Additionally, there will also be a voting section before the final selection. This voting initiative is a major way the community displays its stake in our processes. The assets that make it through these stages will then be added to the pool and become operative for borrowers.
The interesting thing about sourcing for the most liquid projects is that they come with minimized risk exposure. By adding only such assets to our pool, we offer our users an excellent lending and borrowing experience with reduced possibilities of market manipulation. We get to ensure a stable system that safeguards investors’ funds without compromising the interests of borrowers.
Asides from the 5-stage selection process, we would also release all source codes as open source, and have them edited as well. This is to further emphasize our commitment to complete transparency in the ecosystem.
Promises Great User Experience
The open lending ecosystem requires seamless interaction between investors, traders, and speculators. At RiFI, there’s great regard for a healthy user experience that integrates all features relevant to the key stakeholders in our open lending system.
Two common problems with existing open lending platforms are restricted support for one-chain transactions and ineffective interest rate models. We contemplated these problems in creating our system to ensure all the existing gaps are bridged adequately.
With RiFi, there’s complete support for crypto assets across numerous blockchains. We foster a comprehensive and large network of investors, borrowers, traders, and spectators who can exchange crypto assets seamlessly, whether stable coins or not.
Additionally, our rate models are well-devised to also serve periods of low utilization. This makes lending and borrowing more practicable for both lenders and borrowers. It also makes borrowing less burdensome.
RiFi Is Changing The Narrative
RiFi has contemplated all of the challenges with existing open lending platforms. This makes our solutions accurate and sustainable. We are looking to create the biggest and most interactive open lending system. Money markets can function effectively with our system, and investors can get increased ROIs from their assets.
More details about the project can be found at:
Telegram Announcement: https://t.me/RikkeiFinance_official