Introducing Open Finance (OpFi) protocol with Matic Network

TLDR; OpFi gives exposure to real-world assets with on-chain synthetics.

We’re proud to announce the Open Finance Protocol in collaboration with Matic Network to enable users to invest in real-world assets in a seamless manner.

Open Finance(OpFi)

Open Finance (OpFi) is a fintech protocol that enables custody of real-world assets on blockchains and enables developers to build applications on top of it. Being open in nature this protocol allows seamless integration of other on-chain apps, and can enable multiple chains to cross-share the asset classes.

Open Finance or OpFi could potentially enable institutional investors and funds to participate in the blockchain, crypto & Defi economy as it removes hurdles of price slippage, offers high liquidity & instant settling while offering complete insurance & custodianship of physical assets. The protocol bridges the gap between traditional finance & Decentralized Finance(Defi).

Open Finance encourages participation by creating a yield on real-world assets (such as Gold, Stocks, etc). This enables long term investors to create further value on their assets

There are five major components to the Open Finance Protocol

1) Tokenisation of real-world assets

Assets and commodity trading is a multi-trillion dollar market where blockchain can play a pivotal role. However, the institutional funds are still at bay due to high volatility, lack of liquidity, complex experience, etc.

Open Finance protocol enables the tokenization of real-world assets so that they can be instantly traded & easily transferred across the world.

We’re right now doing a Proof-of-Concept with tokenized Gold & Silver, but in the future assets such as company stocks, exchange-traded funds, bonds, oil, etc can be added to the protocol.

2) Instant Trade without the need for an exchange

Open Finance allows instant exchange of assets without any price slippage or counterparty risks. Instead of trading with an exchange or a user, you directly trade with the smart contract of the asset. The smart contract derives the price of the asset using Oracles and offers high liquidity.

3) Low-cost instant loans

Open Finance protocol enables collateralized loans at a low-interest rate of 2-5% per annum. This encourages users to hedge their bets.

4) Earn yield on real-world assets

Most of the real-world assets(such as Gold, Silver, etc) do not earn you a yield or interest for just keeping them with you. Using Open Finance you can do just that. You can stake your assets as collateral and earn a yield on it.

5) Universal chain support

Being open in nature, the protocol can enable the sharing of assets between various chains, enabling users to get the best of both worlds – access to more assets, and transacting at a low fee.

For example, in our proof-of-concept, Gold is tokenized on the Tezos chain & Open Finance adds a bridge to it for the Matic network.

More details about the Open Finance protocol can be found here:

For the governance of this protocol, we are launching ORO tokens which shall be an ERC-20 compliant token.

Matic Network – The backbone of Open Finance Protocol

Open Finance protocol shall manage multiple asset classes with several financial services built on top of it. This demands a robust and scalable network solution.

After reviewing several promising technologies we decided to build the Open Finance network on Matic for the following reasons:

1) Matic offers high transaction throughput

Matic offers high transaction through being a financial protocol, it is important for the transactions to be processed swiftly. Unlike the Ethereum network where transactions get clogged when there’s a surge – Matic offers exponentially better throughput.

2) The low fees of Matic Network enable microtransactions

The low fees of Matic Network are enabling us to create complex financial products that are inclusive in nature.

3) Matic is Open & Decentralized

Unlike some financial blockchains, Matic is completely open-source & decentralized, which helps keep the neutrality of Open Finance Protocol.

4) Deployment on Matic is easy

Since Matic is the ethereum side chain, existing ethereum contracts can be easily deployed on it. This removes the learning curve that comes up when building on other chains. There’s a vast talent of the pool easily accessible for swift deployment.

5) Passionate community

Matic network has one of the most active communities in the blockchain ecosystem. This enables ease of adoption and access to a large set of early adopters.


You can get all the details about the protocol here.

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