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The growth of Decentralized finance (DeFi) and Traditional finance (TradFi) economies are both hindered by structural and scalability issues.
Despite all the innovations in DeFi, on-chain investors still lack access to stable and sustainable yields due to the high correlation of underlying asset prices and the recursive nature of DeFi yields. The lack of a robust credit risk assessment framework further contributes to higher default rates and credit losses.
DeFi also operates within an evolving regulatory landscape, with uncertainties around compliance aspects, especially around the participation of retail investors in DeFi protocols. This creates risks for both platform operators and participants, hindering widespread adoption and institutional involvement.
Traditional finance (TradFi) markets also have their own challenges, particularly in the private credit space where traditional banking institutions have left behind a massive financing gap of US$5 trillion for MSMEs (Micro, Small and Medium Enterprises) and 1.7 billion adults unbanked across the global, mostly coming from emerging markets.
Non-Bank Financial Institutions (NBFIs) like Micro-financing companies, Multi-financing companies, Cooperatives, P2P Lending companies are trying to fill this credit gap left behind by the traditional banking institutions. However, most NBFIs lack access to scalable capital to facilitate loans to segments of society underserved by traditional banks.
HELIX is an institutional RWA protocol connecting on-chain investors to real-world private credit opportunities. It is our answer to the issues plaguing DeFi yields and the TradFi credit financing gap.
HELIX aims to provide institutional and accredited investors access to stable yields that are uncorrelated to the broader crypto market volatility through risk managed real-world asset backed loans.
It uses a robust proprietary Credit Risk Analytics technology that processes millions of loan data points from NBFIs (Non-Bank Lenders) to analyse underlying loan portfolios and extract insightful credit and performance metrics for investors.
Through these highly curated investment opportunities, HELIX enhances portfolio yields for on-chain investors while facilitating liquidity for the top NBFIs in emerging markets so they can grow their loan books and promote financial inclusion at scale.
Real-world assets (RWA) represents a new frontier in the DeFi space, offering investors stable, reliable returns and access to a wider range of assets. As the financial landscape continues to evolve, RWA is expected to play an increasingly important role in providing new investment opportunities and transforming traditional finance. With its robust credit risk assessment capabilities and focus on regulatory compliance, HELIX provides the much lacking institutional grade execution for on-chain investors and will help to drive the adoption of RWA.
The RWA credit space is still in its infancy, with a total value locked (TVL) of approximately US$500 million, a small fraction of the overall stablecoin market of US$125 billion. This presents a significant opportunity for an institutional RWA protocol like Helix to consolidate and scale this into a multi-billion dollar industry.
Helix is slated to go live on Ethereum in Q4 2023, with near-term plans to potentially launch on other emerging blockchain networks. The protocol primarily targets accredited and institutional investors who will undergo a Know-Your-Customer (KYC) process as part of onboarding. Participation in a lending opportunity is represented by fungible tokens. Helix aims to integrate and collaborate with stablecoin providers, exchanges and other lending protocols to scale the broader RWA credit ecosystem.
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