After blockbuster in 2020, Ethereum is struggling to catch its breath – it is full of transaction volumes driven by the growing popularity of DeFi and non-exchangeable tokens.
Now rival networks like Binance Smart Chain are trying to steal cryptocurrency Ethereum for lunch … and become the preferred target for decentralized finance projects.
Here we talk to Vladimir Tikhomirov, founder of Rubic Finance, to take over the state of the DeFi sector, and talk about the goals of the project for 2021.
1. What do you think is the biggest challenge for DeFi right now?
Everyone is talking about Ethereum congestion, which leads to higher petrol prices – and we believe that there are not enough business models in the market to grow quickly. We also feel that crop production is declining due to the volatility of the business model. The most important driving force behind DeFi is trade. This should change with the global integration of cryptocurrencies.
2. Does Ethereum allow DeFi protocols due to high gas charges?
The rich use Ethereum for DeFi, but the high transaction fees turn out to be unacceptable for small investors and sellers.
3. How important is your integration with Binance Smart Chain?
There is a lot of sweetness in him. In some of our other projects, more than 80% of the contracts are now generated in BSC and only 20% in Ethereum.
On Rubic.exchange, users make hundreds of transactions between Ethereum and Binance Smart Chain to convert tokens from one blockchain to another.
To switch to the Rubic platform, you do not have to follow KYC or the registration procedures as is the case with the central exchange or other exchange-based platforms. This opens up opportunities for users from all over the world, including the United States.
4. Do you think BSC will surpass Ethereum as the preferred DeFi blockchain?
I think this will be the case in the near future, but the factor in reducing BSC decentralization cannot be ignored. As volumes grow, the SEC may be interested in the network, which can relatively easily limit the use of BSCs.
The goal of our project is to combine all blockchains and protocols in one platform so that DeFi will flourish regardless of the local victories of a particular blockchain.
5. You talked about your goal – to offer a universal fully decentralized platform. What does this include?
Since 2017, our team has performed dozens of integrations with multiple blocks.
Each blockchain has its own mission-specific features – Tron is suitable for gaming applications, BSC for DeFi – which means that each network will always have corresponding projects and assets.
Our mission is to gather all blockchains in one place, where you can exchange and exchange between your favorite chains using the latest protocols.
For example, if you want to use an ERC-20 token to trade on the Binance Smart Chain (using PancakeSwap), you can convert the token and make a decentralized exchange without leaving Rubic – with minimal fees due to the integration of most DEXs.
6. How will tier 2 solutions and anonymization tools benefit Rubic users?
To create a functional global exchange / trading solution, several things are needed: extremely low switching costs, high speed with Layer 2, the ability to perform anonymous transactions and support for the largest number of blockchains.
After that, we will have a unique solution in the market for all users.
Anonymizer is important because there are a number of scenarios where you need to be able to shop privately: buy or sell tokens under closed contracts, pay bonuses to team members, or make investments if you are known.
Rubic will be a mix of Tornado Cash and Uniswap, where you can buy tokens in a smart contract, shop and withdraw completely anonymously. There is no such solution on the market – and in our opinion it is necessary.
7. Do you have any statistics that give an insight into the latest DeFi trends?
Smart contract creation on the BSC network jumped 100% in February, while Ethereum fell almost 40%.
A large amount of funds flows from Ethereum to BSC and about 80% in the opposite direction, which indicates a trend when it comes to trading on BSC, but keeps money in Ethereum.
8. Are there any new features that Rubic will introduce in the next 12 months?
Yes, a level 2 solution supported by various blockchains, anonymous trading tools and other blockchain implementations on the platform.
9. How do you think the decentralized financial sector will develop in 2021?
We are exploring new financial business models – and more and more applications for fast loans, non-deposit services and trading. We expect real users to be encouraged to try DeFi solutions by showing interest in the increase in Bitcoin and Ether prices.