What is Defi?
DeFi is a term that’s been going around the crypto-scene for quite some time now, touted as the next big step in decentralized ledger technologies. But what is DeFi?
In simple terms, it is finance related software that’s built to be used with a DLT (namely blockchain) thereby taking advantage of all the characteristics this type of technologies present – transparency, immutability, interoperability, programmability, among others.
In a broader view, DeFi refers to a paradigm shift at the economic level enabled by DLT, happening right now on several levels, ranging from P2P payments to smart-contract enabled auto loans, including fiat-pegged stablecoins, with new use cases popping up at an increasingly higher rate. Its absolute goal is to decentralize traditional financial services, turning them into permissionless financial services.
There is no denying that DeFi has established itself as one of the leading areas within the blockchain space.
The possibilities are endless: DeFi solutions that present an innovative way of engaging in borrowing & lending, allowing for instant transaction settlement as well as the ability to collateralize digital assets; DeFi protocols allowing companies to track the value of their digitals assets and analyze a whole new array of data without the need for software/system integrations due to incompatible software; applications built on top of public DLT’s, enabling a myriad of use cases including wealth management and insurance, two of the most sought out financial utilities.
Each DeFi dapp/protocol can be seamlessly combined with the next one, connected to each other using smart contracts. You can think of smart contracts as API’s, though unlike traditional API’s smart contracts are standardized and highly adaptable. Something that would require a very can be achieved by changing a set of
specific API in traditional systems parameters in a smart contract.
What exactly is Meridian Network?
Let’s start by defining a DAO. A DAO is a decentralized autonomous organization. In other words, it is a system where the rules are embedded into its code, and no single entity has the power to make decisions on behalf of the others, a management problem known as the principal-agent dilemma.
Through open-source protocols, DAO’s dictate how users interact with each other, using game theory to steer the actions of its members as opposed to legal contracts, incentivizing people to make decisions that best suit the group’s interests as well as their own. It eliminates the need for individuals to trust each other. DAO’s are incorruptible, fully transparent, and autonomous.
At its core, Meridian Network aims to become an ecosystem of DeFi protocols 100% governed through a community-driven DAO, allowing its users to choose the set of rules that is most favorable to them.
The way we will do this is by releasing DeFi dapps that have a DAO governance mechanism embedded into their code, and users will be able to use these dapps/protocols and decide on their variable features/ attributes through voting. The LOCK token will serve as the measure of voting for these dapps. This is not the only use for the LOCK token, as will be seen on our second protocol to be released within 2 months.
We have chosen the Ethereum network for our initial DAO implementation, as it is currently the most widely used and standardized smart contract platform, seeing as compatibility is paramount to any DAO-governed system.
Meridian
