Beyond Finance: Why we Invested
Currently, 30% of the world’s population (1.7 billion people) do not have access to a bank account. Yet, two-thirds of this unbanked population has access to a mobile phone which could help them access digital assets. Before, this population did not have ease of access to equity in stocks, gold, index funds, derivatives, or other financial instruments. Beyond Finance has the ability to help empower the 1.7 billion unbanked to participate in the multi-trillion-dollar world equity market.
Beyond Finance can do this through synthetic assets, a decentralized platform for creating and trading synthetic financial products. Synthetic financial products allow users to have exposure to the underlying asset they represent without owning that asset.
While there are other synthetic exchange platforms on the market, most require a high collateralization ratio which creates a substantial barrier of entry into the market. For example, Synthetix requires a 6:1 collateralization ratio, which means users would need to provide $6000 to mint $1000 worth of synthetics. Secondly, most synthetic exchanges have shallow liquidity pools, which introduce the risk of high slippage and front-run transactions, resulting in lost user funds.
Beyond Finance intends to have an initial collateralization ratio of 300 % (half of its competitor, Synthetix). As more liquidity is added to the Beyond Finance Liquidity Pool, it will offer a collateralization ratio of 150 %. This ratio is intended to attract new investors who have less capital to work with while also providing a solution to more advanced investors needing access to more liquidity.
Beyond Finance aims to solve high slippage and front-run transactions by deepening the BYN liquidity pool. The intention is for an excess of BYN tokens to be staked by liquidity providers, prompted by generous rewards from the Beyond Treasury.
The project has inspired the confidence of several well-respected investors alongside GD10, including Master Ventures, Titans Ventures, Duck Dao, A195, X21 Digital and many more.
Launch Statistics for Beyond Finance boasts an initial market cap of 1.7 million dollars. Beyond Finance has significant growth potential, as evidenced by the success of their competitors Synthetix and Mirror, who have a 2.8 billion and 560 million market cap, respectively.
Beyond Finance is led by a team of portfolio managers, investment research analysts, and experienced blockchain developers from financial hubs across Singapore, South Korea, Hong Kong, and the USA. These individuals’ highly professional backgrounds across this developing project instil confidence that they have what it takes to deliver a solid product.
We have decided to add Beyond Finance to our portfolio because they are well equipped to create the most attractive synthetics trading platform available. They have the potential to introduce billions of people to very lucrative markets through the world of Web 3.0.
For more on Beyond Finance, check out our First Look article here.
Graphic Design by Caelan Flemmings