Project Spotlight: Rai Finance and Polkadot’s DeFi Bet

Key Takeaways

  • Rai Finance is an emerging DeFi protocol built on Polkadot.
  • It offers interoperable asset trading, social trading, and private, off-chain transactions for traders.
  • Many of these features won’t launch until next year, however.

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Rai Finance is a DeFi platform built within the Polkadot ecosystem. The project aims to rectify many of the pain points facing projects built on Ethereum by moving to a more scalable network. 

Though congestion has dwindled since the summer months, there are few near-term solutions to Ethereum’s scalability problems. The launch of ETH 2.0’s Beacon Chain is promising, but users won’t enjoy the upgrade’s benefits for another few years. Thus, with so many popular DeFi apps built on this network, competitors have emerged to offer a superior service. 

There are alternative blockchain networks like Cosmos, EOS, Tron, and Cardano that look to become DeFi’s new home alongside Polkadot. Even Ripple has joined the race thanks to a recent integration with Flare Networks.

Each of these networks also has a handful of similar project offerings in the way of an AMM-based decentralized exchange, non-custodial lending and borrowing, as well as yield farming opportunities.

For now, however, Polkadot appears to be the leading competitor. Popular Polkadot-based DeFi projects include Stafi, Acala, Centrifuge, and Polkastarter

Rai Finance is following this trend but adds a handful of unique features. These include ZK-Proof transactions, self-balancing token sets, and, thanks to the base protocol, interoperability with different asset standards and market-making algorithms. 

Whether these will be enough to make the project successful remains to be seen.

Rai Finance Bets on Polkadot

Rai Finance is betting on the continued success of both DeFi and Polkadot. 

So far, the decentralized finance movement shows no signs of stopping, even despite the various hacks and bugs discovered this year. The sector has become a…

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