XEND Finance DeFi Platform for Credit Unions and Cooperatives (Review)

Hi everybody! Welcome to the Coin Room blod

On this channel, I often discuss various projects of decentralized financing, which allow their users to earn money and make a profit staying fully passive with the help of cryptocurrencies. However, today we are going to talk about a rather unusual DeFi project, the main goal of which is less of earnings and more of opportunity to preserve your capital from depreciation. This project is called XEND Finance.

It is being developed by the XEND startup that has its roots in Nigeria. Before the DeFi project launch, Xend Finance creators have already successfully implemented a platform that is simply called XEND and is an electronic wallet in itself, but that works with cryptocurrencies. That is, the XEND platform can be used to make money transfers, pay for telephone and utility services. And that all due to situation with banks being very difficult in African countries, and in Nigeria, in particular. Partly because most of the residents of these areas live in remote small villages, and therefore they do not have any access to banking services, and cryptocurrencies become a real salvation for them.

And after the XEND payment service was successfully launched, its creators decided to help their compatriots from Africa by providing them with the opportunity to preserve their savings like in bank deposits, but only with the help of cryptocurrencies.

This initiative was supported by the Binance exchange, or more precisely, DeFi Labs, which is its division that teamed up with the Google Launchpad organization and several other funds to allocate funding to XEND Finance in the amount of one and a half million dollars. Thanks to this, the XEND Finance project team has already successfully launched its testing network that can be joined by everyone, and at the same time, participants of the testing network have a chance to receive up to 200,000 XEND tokens.

But that was about general features of the Xend Finance project. Now let’s take a closer look at the technical and economic component of the project.

XEND Finance operates on the following model: users can make deposits into Xend Finance in both cryptocurrency and in their local, African currency, which will then be converted into coins and tokens by the XEND payment system, and then distributed through various decentralized financing protocols, such as Compound, Maker and AAVE. These projects are among decentralized lending leaders in the industry, and Maker is one of the first DeFi projects, so it can be concluded that the creators of XEND Finance relied on reliability and stability, and not on fast and risky profits when choosing projects for making deposits.

And thus, due to the automatic distribution of various decentralized financing protocols, depositors of the XEND Finance project can multiply their investments up to 15% per year, while classic banks and credit cooperatives can often offer African residents only 1% per year, due to the poor development of the banking sector and the continuous depreciation of local currencies.

Moreover, you can make deposits to XEND Finance using different models. This can be both personal deposits, as well as deposits made by a small group of individuals, and deposits in the form of credit cooperatives. Such organizations are widespread in the African region, and now, thanks to the XEND Finance project, they will be able to develop at a faster pace and offer much better services to their customers.

Moving to the technical side of the project, XEND Finance operates on the Balance Smart Chain blockchain, which is fast and scalable at the same time, and its whole concept is designed specifically to match the needs of the DeFi industry. In addition, Xend Finance also has its own decentralized autonomous organization, that is, DAO, which operates on Ethereum smart contracts, and using which XEND Finance users can manage the project through voting with XEND tokens. In addition to voting, these tokens themselves can also be used to bring you additional profit from staking.

So, as far you can see, the Xend Finance project is really quite unusual and promising, especially if we take into consideration that it is supported by such Fintech industry giants as Binance and Google. And at the moment, you can try out the services of the Xend Finance project yourself by checking out their official website and connecting to their test network through the Meta Mask wallet. Despite being aimed mainly at people in Africa, Xend Finance thanks to the blockchain technology is global and allows people to use it from anywhere in the world.

Project links:

Website: https://xend.finance/
Twitter: https://twitter.com/xendfinance
Telegram: https://t.me/xendFinance