Press "Enter" to skip to content

DeFi in Bitcoin? Tropykus Finance Protocol activates loans in Latin America

Key facts:
  • Traders can use RBTC, DOC, RIF, and USDT for deposits and loans.

  • In May the service would go live on RSK’s main network.

Decentralized finance (DeFi) is common on networks like Ethereum and other smart contract blockchains. Now a new alternative in Latin America is aiming to integrate with bitcoin (BTC) through RSK’s side chain, its name: Tropykus Finance.

The initiative has a dual purpose. The first is to integrate the bitcoiner community to streamline loan applications and earn interest using smart contracts. The second is to contribute to emerging economies and achieve social impact through financing.

This was announced by Mauricio Tovar, CEO of Tropykus Finance, who explained to CriptoNoticias that it is a service to lend and borrow funds denominated in RBTC, DOC, RIF and USDT. The platform will enter the testnet on Monday, April 12 and is expected to enter the RSK mainnet in May. During the evaluations, operators will be able to use the system at no cost for their transactions.

“Interest varies according to supply and demand among borrowers and borrowers, but we are designing so that borrowers’ interest is not below 5% per year. As for those who borrow, the idea is that it should not be above 11% per year, which is better than what the traditional system offers in Latin American countries, “Tovar informed this newspaper.

The executive highlighted that the interests of both parties, depending on the case, are dynamic and are charged or paid every 30.5 seconds, the time of each block in RSK. The funds can be withdrawn or paid at the time the user decides.

“Assuming that someone lends in Tropykus 0.048 BTC (about 2,800 dollars) and leaves them for six months with an annual interest of 5%, then the person obtains a return of 70 dollars”, added Tovar who highlighted that with this dynamic they are served those who need to access credit with better conditions than those offered by traditional banks.

Another objective of the project is to evolve in the remainder of 2021 to integrate services with local currencies from different Latin American countries. On the app’s website, users can now enter the system and exchange their BTC to RBTC for testing.

Booming DeFi market

Decentralized finance is experiencing a boom on a global scale with millions of operators blocking funds to earn interest, for example. Multiple loan services are gaining attention in the DeFi universe como Compound, Maker y Aave.

In February of this year, CriptoNoticias reported that the DeFi market already registered 37,000 million dollars blocked on its different platforms. Since then the figure has done is increase. According to the DeFi Pulse service, currently the blocked funds amount to more than 52,000 million dollars, which translates into a growth of almost 30% in two months.

Be First to Comment

Leave a Reply

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