Optimizing DeFi: Blockchain for Equitable Access

Our open-source blockchain supports high-demand assets and smart contracts, bringing financial services to underbanked areas via integrated on- and off-ramp facilities

Stellar improves the accessibility of DeFi for underbanked communities by providing an extensive ramp network supplemented with intelligent contracts through Soroban.

Decentralized finance (DeFi) has emerged as a transformative force in the financial sector, promising increased inclusivity and accessibility.

Nevertheless, the actuality frequently fails to meet these aspirations, particularly for developing regions and underbanked and unbanked populations.

These users are economically unable to access DeFi services due to the high transaction costs associated with protocols such as Ethereum and various centralized exchanges (CEXs).

Although there are more cost-effective alternatives, they need to improve the distribution channels required for on and off-ramp services, which are essential for reaching underbanked and unbanked communities.

Services facilitating the transition between fiat currencies and cryptocurrencies are on-ramps and off-ramps.

Closing the disparity in global finance

Stellar, an open-source blockchain designed explicitly for asset tokenization and payments, offers a plausible solution to these challenges. Stellar’s platform facilitates the utilization of a wide range of assets that are in high demand, including USD Coin, in smart contracts.

The intelligent contract integration enables users to participate in more intricate financial activities, such as pledging, borrowing, lending, and yield. By utilizing its comprehensive features, the intelligent contracts platform of the network, Soroban, further enhances these capabilities.

Soroban benefits from an established market services, assets, and platforms network. The network offers a variety of fiat-denominated assets, new and existing ramps, and innovative products such as the Anchor Platform that provide compatibility benefits through Stellar Ecosystem Proposals (SEPs).

Additionally, it has partnerships with entities such as MGI and its agent network.

Increasing accessibility through the provision of on- and off-ramp services

The on and off-ramp facilities offer benefits such as immediate access to existing infrastructure, eliminating the necessity of constructing new systems from the ground up.

Additionally, they facilitate the expansion into new geographical markets, particularly those that are underserved in developing countries and may not have access to traditional banking services.

This report demonstrates that Stellar is the second most prevalent cryptocurrency in tangible on-ramp locations worldwide, following Bitcoin.

Stellar’s infrastructure is essential to address a wide range of unmet requirements within the global financial ecosystem and attract new users.

Soroban democratizes access to DeFi, allowing users to interact with DeFi services and applications globally without needing a bank account.

This opportunity is especially advantageous for individuals residing in regions where financial services are either prohibitively expensive or physically inaccessible.

Defi innovation and dependability

Stellar allows architects and entrepreneurs to access these underserved markets from a development perspective. The network’s coverage enables targeted solutions, such as affordable financing options for small business proprietors in countries with high borrowing costs.

Moreover, the Stellar network’s reliability and lack of outage guarantee uninterrupted services, thereby preserving user trust and retention.

In addition, Soroban’s scalability guarantees that the ledger can accommodate increased activity as transaction volumes increase without sacrificing service quality.

For developers and businesses considering significant investments in blockchain integration, scalability is essential to guarantee that their endeavors will be sustainable in the long term.

The Stellar Community Fund has provided over $15 million in funding for Soroban initiatives, which has assisted in the bootstrapping of the ecosystem.

Furthermore, the Stellar Development Foundation has allocated a $100 million adoption fund to facilitate and expedite the expansion of the Soroban platform.

The objective of this considerable investment is to promote financial inclusivity and accessibility by encouraging a diverse array of decentralized applications (DApps) to utilize Stellar’s innovative contract capabilities, thereby fostering innovation and development.

At present, Soroban is home to 249 projects that are in the process of being developed. In addition to the automated market maker Phoenix, the lending and borrowing protocol Blend, and the oracle service Band Protocol, 21 have already been introduced on the mainnet.

The Stellar network’s robust development and adoption are underscored by the expanding ecosystem, which exhibits diverse, innovative financial applications.

Soroban-supported platforms, such as the Stellar network, provide inclusive, scalable, and robust pathways to DeFi that can cater to the diverse requirements of a wide range of user groups and reach global audiences.

Stellar’s infrastructure fosters the development of a more equitable and efficient international financial ecosystem while enhancing financial inclusivity.

The transformative potential of blockchain technology to bridge financial divides and empower economic participation worldwide is underscored by such strategies.