iBNB Grand: First of its kind DeFi Bank for Wealth Growth and Management
The decentralized finance movement, as powered by cryptocurrencies and blockchain technology, has brought about revolutionary changes in the world of finance.
No longer do people have to trust centralized institutions to safeguard their wealth or conduct transactions.
With a simple wallet on your phone, you can establish your bank, access liquidity for various trading activities, or earn interest on your savings all through decentralized web 3.0 platforms.
Present Challenges in DeFi Investing
While promising, this nascent industry, however, is still in its early days, and many challenges need to be addressed before it can reach its full potential. One of these challenges is inefficient price discovery.
Price discovery is the process by which the market determines the prices of the assets in that market. In traditional finance, this is achieved with ease thanks to the multitude of market participants interacting in an open market.
On the contrary, while the crypto market is growing fast, decentralized and centralized exchanges are riddled with inefficient price discovery due to the market’s lack of active and robust sources of liquidity, not to mention the volatile nature of the entire industry.
Active and mature markets such as those in traditional finance, benefit from the multitude of participants who compete to deliver market data from various sources, thus increasing efficiency in terms of price discovery. However, the disparity in pricing across different DeFi platforms gives room for arbitrageurs to exploit existing loopholes leading to issues such as large price slippage and impermanent loss.
Other Challenges in the DeFi Sector
Inefficient price discovery is not the only issue facing the emerging DeFi industry. A lack of regulation is also a challenge as most emerging countries have no clear legal guidelines on the industry. Lack of regulatory clarity slows down adoption and even scares off many potential investors from the industry as they are not sure who to trust in an industry that has often been likened to the Wild West.
What’s more, despite the many innovations that exist in the DeFi landscape not to mention the various lucrative opportunities that abound, many crypto enthusiasts are oblivious of the financial risks posed by faulty smart contracts.
Ethereum’s invention of smart contracts that run on the blockchain is the main reason why the DeFi movement is currently redefining major aspects of traditional finance. Simply put, smart contracts have made it possible for the global financial system to be as open and as progressive as the internet itself, allowing people from all walks of life to access previously inaccessible financial products.
However, given that the entire DeFi ecosystem is predicated on the technical functionality of smart contracts, any flaw or loophole in these smart contracts can be fatal for the entire industry. The composable nature of DeFi platforms also adds to the complexity and inherent risks that the entire industry is currently facing.
This is why iBNB’s ecosystem has emerged with the first-ever decentralized finance investment bank geared towards ironing the wrinkles in the industry and protecting investors while facilitating access to a variety of trading and investment tools.
What is the iBNB Ecosystem?
iBNB is the first of its kind dynamic DeFi investment ecosystem. It features a DeFi Bank called iBNB Bank, a partnership network of various DeFi projects and investors called nBNB network, and a set of trading and investment tools accessible to investors and traders through the iBNB website and the nBNB brige.
Using the nBNB network, DeFi projects can gain access to a ready community of early investors, and investors can gain access to qualified and vetted projects with a promising future.
What’s more, using a dynamic cash-flow system called the nBNB bridge, the nBNB network can generate dividends issued out in the form of Binance Coin (BNB).
Using built-in smart contracts that are programmed with mathematical formulas and incremental valves, the iBNB ecosystem is capable of generating a stable rate of return to its community of investors.
The dynamic aspect of iBNB means that the platform’s token economics is built with an adaptive transaction fee mechanism where the token’s protocol works to ensure healthy liquidity and maximum dividend payouts to investors.
The entire iBNB platform features dividend pools that generate dividends by balancing and maintaining liquidity across multiple decentralized exchanges such as PancakeSwap.
With dividend pools built on the Binance Smart Chain network, iBNB is revolutionizing all aspects of investing in DeFi projects with a set of tools that offer safety, convenience, and reliability.
How does iBNB work?
At its core, the iBNB ecosystem is designed to be expansive rather than closed. A glance at the working mechanisms of most reward tokens and one will realize that most use a transaction fee-based mechanism based on that token’s trading volume only.
The challenge here is that this model requires that token’s project to have continuous exponential growth to provide an ROI from dividends well into the future. Simply put, this is an unsustainable model and is considered highly unrealistic within any financial market.
As a solution, iBNB’s nBNB bridge is supported by a network of partnerships and internal projects designed to continuously generate a return sustainably for a long time. These are promising projects that are vetted by a series of checks and balances to ensure investors only have access to projects that have a future. For instance, each project that becomes a partner is checked for technical viability and market feasibility.
The projects that partner up with iBNB’s ecosystem benefit from the backing of iBNB’s investor community. These investors, on the other hand, can access rewarding daily collectible dividends with an additional amount of externally generated cash-flows from every partnering project.
Every project that joins the nBNB partnership provides transaction fees that flow into the iBNB dividend pool. The combination of transaction fees from all partner projects across exchanges (both centralized and decentralized) on the DeFi landscape generates a healthy cash flow that significantly supports the sustainable success of the entire ecosystem as well as the BNB dividend pool.
Investors, therefore, get to collect their dividends daily, thanks to the overall growth of the platform.
The iBNB Bank
The iBNB Bank is an intelligent money management system built for the iBNB ecosystem with smart contracts, various DeFi protocols, quantitative algorithms, and strategic investments.
This is the first of its kind decentralized finance bank that facilitates the growth and management of wealth from iBNB’s investors. Funds flow into the iBNB Bank either through direct transaction fees from the nBNB bridge on both centralized as well as decentralized exchanges or from transaction fees generated from the various partner’s projects in the iBNB ecosystem.
For capital growth, the iBNB Bank uses state-of-the-art quantitative and analytical investment strategies. Incoming funds in the form of transaction fees across the iBNB ecosystem are allocated appropriately using investment strategies initiated via smart contracts. In addition to the smart contracts, there is a team supporting the iBNB Bank’s investment strategies.
The algorithm controlling the smart contracts on iBNB remains confidential; however, analytical and qualitative investment strategies are deployed as a profit strategy.
In addition, iBNB Bank also uses staking techniques to grow and diversify finance allocation towards the growth of capital. iBNB Bank also uses a research and development team that continuously studies partnering innovations as well as in-house DeFi protocols to give investors in the iBNB ecosystem the best possible investment vehicles. According to the iBNB finance whitepaper, all the profit made from iBNB Bank is channeled back into the project either as working capital as well as operations, supervision, and dividends.
Funds generated through iBNB Bank are then used to expand the iBNB ecosystem through funding new projects that join the nBNB network thus further providing transaction fees to iBNB Bank.
Conclusion: The future of iBNB
Making wise financial investments starts with having access to the right information. Given the lack of financial literacy among crypto enthusiasts, iBNB wants to become a pillar for financial literacy for its community of investors and the crypto space at large.
Before the end of 2021, iBNB is working towards a partnership with mega payment platforms such as Visa and MasterCard. The project’s roadmap extends to 2023, and iBNB is set to increase its project partnerships to 25 projects thus boosting overall platform value as well as increasing the dividends that investors expect to receive.
When it’s all said and done, iBNB is an ecosystem that is set to revolutionize decentralized finance with superior daily dividend strategies and an intelligent investment mechanism designed after well-thought-out finance principles. Its system is built to withstand the volatile and unpredictable nature of the crypto market.
The use of smart contracts to trigger financial transactions ensures safety, transparency, and reliability for its users. Furthermore, the opportunity to access promising projects before they are listed on exchanges is an edge that iBNB has over other reward tokens.
With its launch on the Binance Smart Chain, scalability is also guaranteed, given that BSC is one of the most scalable blockchain networks in the DeFi landscape at the moment.