Relite finance

An interview with Moonboots Capital

Written By Moonboots Capital

Moonboots is a value adding community based Venture Capital organization.

Upcoming Projects

An interview with Relite Finance who are innovating a user friendly cross chain lending protocol powered by Polkadot Network.

Decentralized finance isn’t simply a buzzword anymore.  Cutting edge applications are challenging the status quo banks, creating lending and borrwing options that are more accessible and far more equitable.  Relite is paving the future of such options as a decentralized cross-chain lending protocol focused on approachable and frictionless user experience.  

MoonBoots Capital is a proud early investor in Relite.  Relite comes with an impressive team and advisor list.  Their roadmap is second to none and they stand to capture a significant market share of growing DEFI TVL (total volume locked) by pioneering cross-chain lending while offering future options like synthetics, mortgages, and real world assets.

We were honored and enthused to sit down with Founder George Groshkov to ask a few questions about Relite.  The following interview was the result.

A great video breakdown of Relite Finance by Altcoin Buzz.  Subscribe to them here

 

Q: Can you tell us a little bit about yourself and what inspired you to build Relite?

A: Absolutely! First thing’s first, I’m George and the Founder of Relite Finance. I’ve been involved with IT and the media industry for sometime now. I’m proud to have worked on Estonia’s e-residency program, something which is proving to be quite a hit in the crypto world.

As for why we built Relite – myself and the founding team are DeFi users ourselves and it was clear to us that there’s a real need for a truly interoperable, cross-chain, user-friendly, solution. We’re not here to just talk about mass adoption, we’re here to enable it.


Q: Cross chain integration seems to be the future for decentralized financial ecosystems. How would you describe the benefits in relation to multichain over traditional single chain ecosystems? 

A: Single chain ecosystems are, by their very nature, restrictive. The high gas fees which are currently present on Ethereum, where much of DeFi resides, are not present on the Polkadot platform, nor are they present in many other chains. Ultimately, a cross-chain approach frees up the most important part of DeFi – you, me, and every other user. With multichain interoperability, we’re free to utilise the assets we want to regardless of their native chain.


Q: Having polkadot as the backbone of your system clearly comes with many advantages. Can you talk about which capabilities excite you the most in terms of unlocking new opportunities?

A: Harkening back to your previous question, the interoperable approach enabled by Polkadot is set to revolutionise DeFi as we know it. Although not yet a reality, the rollout of parachains and bridges built on top of Polkadot will allow us to achieve our vision of Relite and will be a huge leap toward making DeFi truly accessible for all.


Q: Can you give us a little breakdown about the Reli token? What is its role in your economy?

RELI is the governance token of the Relite protocol and really serves as the backbone of the ecosystem, alongside our innovative Reserve Fund. The three core functions of RELI are governance, rewards, and staking.

Users will be incentivised to stake RELI in the Reserve Fund in order to earn payouts from the loan margins proportional to the stake whilst being rewarded in RELI for participating in the Relite ecosystem.


Q: What problems is Relite solving?

A: Another trifecta to share with you – Relite are aiming to tackle 3 important pillars of DeFi:

Interoperability
The lack of interoperability in the current blockchain ecosystem is one of the largest hurdles to overcome required to usher in the new, decentralised, open, financial system

Sustainability
The current DeFi infrastructure, at least a very significant portion of it, is fundamentally prohibitive. The rapid rise in DeFi on the Ethereum blockchain has ushered in a rapid rise in gas fees which prices many individuals out of the future of finance. Additionally, Relite looks to tackle the overcollateralization issue which is present in nearly all DeFi applications. By utilising our Reserve Fund we’ll be able to reduce the collateralization rates far below the current average of 180% ensuring a sustainable, accessible, financial ecosystem.

Simplicity
The current approach to DeFi has not been built with the user in mind, and certainly not with the non-technically minded user.

Loans should be straight-forward, accessible, and affordable. At Relite, we’ve developed a truly accessible interface where users, novice or otherwise, are guided through the process and receive smart notifications based on their behaviour. Our user experience and flow enables users to easily deposit assets to supply liquidity, provide collateral to access a loan, and unlock the next level of finance.


Q: How long has your team been working on Relite? What would you say your biggest challenges have been to date?

A: The team started work on Relite back in October of 2020. However, the members of the team have been working on various blockchain based projects in the private and public sector for some time now.

I think the biggest challenge has been staying focused on the goal, since the industry is massively polluted with noise. Now, I can say we’ve overcome that and achieved a clear vision.


Q: Where is your team based and what brought you together? What would you say your biggest strengths are?

A: Much like blockchain, we’re a decentralised team! With founders from all over the world, including Estonia, Bulgaria, and Israel.

I’d say our biggest strength lies in the experience which we’ve built when it comes to building products for the mass market, and for a broad range of consumers.


Q: What Is broken with traditional legacy financial systems? Obviously, we have a laundry list of items, but what specifically as it relates to your unique value proposition?

A: Besides the fact that there are around two billion individuals worldwide who do not have access to a bank and, thus, the gateway to the traditional financial system, the current way of doing things, centralised finance, is fundamentally prohibitive.

The team behind Relite, including myself, are huge proponents of DeFi and, like many, can see the near infinite value in an open, accessible, and borderless financial system. However, we can see the flaws of the current implementation of this, too. This is where Relite comes in.


Q: Can you talk about your governance protocol and the types of decisions token holders will be voting on?

A: Relite governance will eventually migrate completely to a DAO. Token holders will be empowered with the ability to sculpt the future of the Relite ecosystem, that encompasses, but is not limited to, product features, RELI utility, and which chains are set to be included in the protocol.


Q: How important is elegance in simplicity for what you are doing?

A: An overly complex system which is built by developers for developers (no hate on developers, we love you guys!) essentially builds a wall around a system due to the learning curve required to utilise a product/system of that nature.

At Relite, we’re taking a user-centric approach. By combining the best in UI and design, we’re confident we’ll be able to deliver a protocol which is elegant, simplistic, and, most importantly, accessible to all.


Q: What does your customer acquisition strategy look like?

A: Although Relite is a community focused project, something which we believe is essential to growth in the blockchain ecosystem and wider cryptosphere, we’re not averse to traditional marketing strategies in order to get the word out.

That being said, as the old saying goes ‘build it and they will come’. With that in mind, we’re designing Relite to be the #1 protocol in the DeFi industry and, as such, the go-to for anybody looking to access the new financial system.


Q: On your website, you mention that on average, positions are over-collateralized by 180%+. How does Relite solve this?

A: This is achieved through the Reserve Fund, which was touched on earlier. The Reserve Fund works as a safety mechanism which ensures better collateralization rates by providing a larger cushion for borrowing positions which ultimately works to mitigate immediate liquidation. Should a volatile market incident occur, RELI can be sold from the reserve pool to re-stabilise the ecosystem.


Q: Does decentralized finance integrate with centralized finance in the future, or does it replace legacy systems?

A: That’s a tough one. The current financial system, the legacy system, seemed to be averse to cryptocurrency in the past 10 years. However, the sentiment seems to be changing pretty rapidly. Whether that results in the combination of centralized and decentralized finance, well, that’s something which will definitely be interesting to see.

I think a more important question the DeFi community should be asking is ‘Do we even want centralized finance to integrate with the DeFi world?


Q: What is a flash loan and why are they valuable?

A: In short, flash loans are crypto loans, enabled by DeFi, which are borrowed and paid back within the same block. Generally, for those executing the flash loans, the main goal is to earn a profit through arbitrage. I think there’s still a lot to be discovered when it comes to the potential benefits of flash loans, but so long as they’re secure and don’t serve to exploit something, they’re an interesting use of DeFi.

 

Q: It is 2023 and the protocol is a resounding success. What does that look and feel like for you and your team?

A: In short, flash loans are crypto loans, enabled by DeFi, which are borrowed and paid back within the same block. Generally, for those executing the flash loans, the main goal is to earn a profit through arbitrage. I think there’s still a lot to be discovered when it comes to the potential benefits of flash loans, but so long as they’re secure and don’t serve to exploit something, they’re an interesting use of DeFi.

 

Q: Is there anything else the readers should know about Relite?

Like I mentioned before, we’re a community focused project so, if you haven’t already, we’d love to invite everyone to join us over on Telegram and Twitter. Our community are an awesome bunch and we’d love to have you there!

Other than that, if you’d like to get a little more familiar with Relite then check out our website here.

 

About Relite Finance

Visit Relite on the web here

Make sure to join their telegram here

Find them on Twitter here

Stay up to date via LinkedIn here

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *