DEFED Convert

Summary:

The upcoming DEFED Convert will support the exchange between different cryptocurrencies and the ability to purchase cryptocurrencies using fiats. All exchange processes will occur on the blockchain, ensuring decentralization and security.

Scenario Description:

In this section, I will provide scenario descriptions of what you can do with DEFED Convert.

Background: Various crypto assets exist independently on the DEFED Network, where even assets like USDC are distinguished as USDC_Polygon and USDC_Ethereum, representing USDC assets deployed on Polygon and Ethereum, respectively.

Scenario 1

Alice has deposited some ETH_Ethereum assets in DEFED and borrowed USDC on Polygon. Now, Alice wants to repay the loan. Without DEFED Convert, Alice would need to:

Prepare additional assets externally.
Prepare MATIC for gas.
Exchange the prepared additional assets for USDC_Polygon.
Deposit USDC_Polygon into DEFED.
Repay the loan.

As we can see, Alice would need to go through five steps to successfully repay the loan (unless Alice chooses to exchange USDC from a centralized exchange and directly withdraw it to their DEFED deposit address, which would eliminate the need to prepare gas). The process is cumbersome and inefficient, leading to additional costs.

If Alice chooses to use DEFED Convert, the steps required can be simplified as follows:

Use Convert to directly exchange the ETH_Ethereum in DEFED for USDC_Polygon, with the exchanged assets deposited directly into Alice's DEFED account balance.
Repay the loan.

As we can see, the entire process is significantly simplified, and Alice doesn't need to prepare additional funds or MATIC for gas. This greatly improves efficiency and capital utilization.

Scenario 2

Bob wants to participate in DeFi on the blockchain but currently doesn't hold any crypto assets (whether on a centralized exchange or the blockchain). In this scenario, Bob can use the fiat-to-crypto feature in Convert, purchasing cryptocurrencies directly using a cash card or credit card. This will be very convenient.

Last updated 1 year ago

Scenario Description:

In this section, I will provide scenario descriptions of what you can do with DEFED Convert.

Background: Various crypto assets exist independently on the DEFED Network, where even assets like USDC are distinguished as USDC_Polygon and USDC_Ethereum, representing USDC assets deployed on Polygon and Ethereum, respectively.

Scenario 1

Alice has deposited some ETH_Ethereum assets in DEFED and borrowed USDC on Polygon. Now, Alice wants to repay the loan. Without DEFED Convert, Alice would need to:

Prepare additional assets externally.

Prepare MATIC for gas.

Exchange the prepared additional assets for USDC_Polygon.

Deposit USDC_Polygon into DEFED.

Repay the loan.

If Alice chooses to use DEFED Convert, the steps required can be simplified as follows:

Use Convert to directly exchange the ETH_Ethereum in DEFED for USDC_Polygon, with the exchanged assets deposited directly into Alice's DEFED account balance.

Repay the loan.

As we can see, the entire process is significantly simplified, and Alice doesn't need to prepare additional funds or MATIC for gas. This greatly improves efficiency and capital utilization.

Scenario 2