This time, CoinMarketCap takes a deep dive into another DeFi solution.
What Is Plasma Finance?
The decentralized finance (DeFi) industry offers many opportunities to people who are familiar with cryptocurrencies and blockchain technology. Despite this appeal, it remains essential to attract onlookers and newcomers. Unfortunately, there is no convenient way to onboard those people, as there are many intermediate steps one needs to take.
As a result, there is a limit to how big the DeFi industry can become in its current state. Everyone wants to experiment with yield farming and lending, for example, but it is very complicated to do so as a novice user. If the decentralized finance industry wants to achieve broader mainstream adoption, something will need to change sooner rather than later.
Plasma Finance, a solution that lowers the barriers to enter the DeFi ecosystem, provides an interface to invest, store and manage any DeFi token.
What Is Plasma Finance (PPAY)?
Plasma Finance (PPAY) positions itself as a one-stop solution for all DeFi needs. It can act as a portfolio management tool, provide access to liquidity pools, help with lending and borrowing, introduce fiat on and off ramps for token purchases, aggregate decentralized exchanges and swap platforms and provide cross-chain asset swaps. That is a lot of functionality that can prove helpful to DeFi enthusiasts at one stage or another.
Creating a convenient and easy-to-navigate DeFi management platform can introduce more people to the world of decentralized finance. Providing all of the features above under one roof caters to the needs of novice and experienced enthusiasts alike. Moreover, it introduces the support for fiat currency deposits and withdrawals, which is essential for gaining broader mainstream adoption.
The parent company, PlasmaPay, was founded in 2017, and Plasma Finance is its subsidiary. Based out of Tallinn, Estonia, the project benefits from a relatively open-minded regulatory ecosystem in the country, allowing for innovation in the (decentralized) finance sector.
The PPAY token is the basis of the entire Plasma Finance DeFi ecosystem. As an ERC-20 token, PPAY can be used to settle transaction fees, to be incentivized for liquidity provision and to grant holders governance rights.
How Does Plasma Finance Work?
Plasma Finance aims to lower the barriers for those looking to enter the DeFi ecosystem. Additionally, it introduces features for those who are accustomed to the world of ROI, APY, yield farming and liquidity provision. It provides many tools for DeFi enthusiasts to explore different options at their disposal and achieve the highest possible return on investments.
By aggregating all DeFi assets, liquidity pools and saving deposits into one dashboard, users gain a better overview of the options at their disposal. Comparing options and hand-picking the most suitable one without friction is what DeFi should be all about. The ecosystem includes noteworthy tools, including:
- Auto-calculations: Plasma Finance lists the annual percentage yield (APY) and profit and loss (P&L) for every option in its app, removing the need for manual calculations
- Choosing your return on investment: With over 100 liquidity pools to explore, users can choose their own return on investment (ROI) to maximize their earnings with cross-chain support.
- Dashboard: In future updates, Plasma Finance is set to build various analytic tools and trend analysis support systems into the protocol.
With support for all the top DeFi protocols — including YFI, Curve, Uniswap, Pancake and others — Plasma Finance aims to pocket DeFi through its forthcoming mobile application that connects with any DApp or DeFi service.
What Makes Plasma Finance Unique?
Building a gateway to DeFi requires support for many protocols and solutions across different blockchains. The objective is to make DeFi appealing to both novice and existing users, without sacrificing convenience and security.
Native Fiat Support
One way to attract newcomers to DeFi is by making it easy for them to buy and sell tokens. Plasma Finance supports bank accounts and payment cards issued by Visa and Mastercard. In addition, the platform aims to offer the best rate from top exchanges and currently supports several dozen crypto assets. Its partnerships with Simplex, PlasmaPay and Ramp introduce global support for these payment methods.
Different Yield Strategies
As Plasma Finance combines the DeFi assets, liquidity pools and saving deposits into a user-friendly interface, the protocols can offer multiple strategies to farm yield. Making a decision becomes a lot more straightforward since users can see their expected earnings and tap into over 100 liquidity pool options.
Support for All Major DeFi Protocols
Plasma Finance strives to offer live rates, the lowest fees and the best APY across all supported DeFi protocols. So whether someone wants to explore Balancer, Sushiswap, PlasmaSwap, or Mooniswap — among others — all information is up-to-date to help users make informed decisions. Plasma Finance deems it essential to provide a clear DeFi oversight, as there is an overwhelming amount of choice in this industry today.
How Does Plasma Finance Compare With Autofarm?
On the surface, Plasma Finance and Autofarm share a somewhat similar goal. Both platforms make it easier to explore different options across the DeFi landscape and offer cross-chain support. However, Autofarm only caters to existing cryptocurrencies those who have a Web3 wallet at their disposal and cryptocurrency assets in their portfolio. Novice users will not have those tools at their disposal right away, as most may not even own any cryptocurrency.
Plasma Finance adds that extra step to onboard novice users by letting them acquire these assets through commonly used payment methods. Moreover, that extra step can benefit advanced crypto users who want to diversify their DeFi asset portfolio and explore multiple strategies simultaneously.
Moreover, Plasma Finance aims to make DeFi more accessible through its upcoming mobile application. Autofarm does not have that option, although users can access its website via mobile with ease. However, the interface is a bit more simplified and bare, which can turn away some people.
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