Financial inclusion, transparency, and the complete elimination of third parties in financial transactions are some of the foundational principles of the blockchain and cryptocurrency space.
Interestingly, Tropykus, a DeFi lending and borrowing protocol, looks to embody these principles. The DeFi protocol, according to reports, is focused on bringing financial inclusion to emerging economies like Latin America. Therefore, providing Latin Americans with seamless access to fair loan options.
This article covers important details about the Tropykus ecosystem, the solution it provides, its modus operandi, and how to use it.
As previously stated, Tropykus is a DeFi lending and borrowing protocol. Also, developers built the project using RSK, an open-source platform that hosts smart contracts. RSK is also a major component of Bitcoin trading. Simply put, Tropykus is built on Bitcoin. This is quite important, seeing as Bitcoin is an inflation-proof cryptocurrency with no centralized control. Notably, it is also backed by solid maths and cryptography.
Tropykus’ Proposed Solution
Tropykus provides easy access to digital lending, borrowing micro-savings, and microloan products. For now, the protocol is focused on providing these services to emerging economies with a focus on Latin America. The protocol provides incentives to anyone who owns Bitcoin or the USDT stablecoin on Tropykus. Therefore, providing them with the opportunity to earn passive income while also providing Latin Americans with unrestricted access to fair loans.
Latin American traditional banks’ loan rates are significantly higher than what Tropykus is currently offering to borrowers. In line with this, Latin American borrowers need reliable alternatives to save, borrow, or lend money. One that is decentralized and also has no need for any form of intermediary. Also, Tropykus is bringing new financial possibilities to the Latin American financial ecosystem. Providing users with a reliable edge against the growing inflation in Latin America. As well as seamless access to fair loans.
🌴 #DeFi savings and loans protocol @tropykus is now open to users!
Boost your savings and get 100% flexible loans in #LatAm
Need help? Learn more: https://t.co/nWlZs7svbM
— RSK (@RSKsmart) March 16, 2022
Modus Operandi
Tropykus is based on several financial principles, including the idea of incentivizing participants. Major participants on the DeFi lending protocol include:
- The Suppliers – These are the liquidity provider of the protocol. They deposit their crypto assets on the DeFi protocol. Therefore, providing support for Tropykus and making funds available to borrowers. In return for their services, suppliers receive interests based on the amount of liquidity provided.
- Borrowers – Borrowers rely on the liquidity provided by the supplier. They use these liquidities as collateral to access loans from different markets.
- Protocol Sponsors – Also known as initial administrators. They provide needed investment to bootstrap the protocol. Interestingly, the functions of the protocol sponsors will phase out as the protocol matures. Subsequently giving way to the governance model which will boost community member inclusion.
How to Use Tropykus
- The first step to using the Tropykus app is to connect to a wallet. Available wallets include: Metamask, Nifty, Trezor, Ledger, etc.
- You can then either decide to deposit your crypto to earn incentives and serve as a Supplier.
- Or you can click on the borrow icon to borrow funds. It is, however, important to note that you need to first deposit crypto as collateral to be able to borrow funds.
In conclusion, the Latin American space is hovering on the brink of change, most of which the crypto and blockchain space will bring about. Tropykus, for now, is bringing much-needed change to the Latin American lending and borrowing ecosystem.
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