Decentralized finance (DeFi) emerged during the bear crypto market in 2018 and aimed to solve a crucial blockchain issue – its centralization. Since its rapid expansion in the summer of 2019, the total value locked (TVL) in DeFi applications reached nearly $88 billion, with a current figure of $59.5 billion.
However, DeFi platforms have a common problem – this is the integrity, as they are specialized in a narrow working field i.e. lending, borrowing, or swapping. ADD.xyz took a different route, bringing almost all DeFi functionalities into a single “Full Stack DeFi” aggregation platform, which also includes ETH mixing, on-chain privacy protocols, buying insurance from providers for lending deposits, Africa-oriented mobile money credits to DeFi lending, mobile applications as well as a DeFi-based debit card.
One of the biggest struggles of the DeFi ecosystem is the ever-increasing transaction costs on Ethereum’s blockchain since most of the protocols are running on top of Ethereum. The transaction costs increase has put immense stress on companies, some of which proved to be unable to continue absorbing gas fees for their customers. ADD.xyz combines a series of products into an all-in-one solution, which helps to reduce transaction costs for end-users.
The name ADD.xyz implies addition, and the platform does just that – it adds value, privacy, DeFi profits, security, and ease to getting involved in the DeFi sector.
The ADD.xyz platform is concerned with decentralization and anonymity, both on-chain and off-chain privacy solutions and protocols, wealth sovereignty, as well as Dark Web compatibility for further protection.
The platform includes an easy-to-access DeFi lending tool, the ADD mobile app for both iOS and Android mobile devices, a staking liquidity program, as well an aggregated DeFi governance overview. ADD.xyz also lists quick access to DeFi protocols in Africa, privacy mixers, such as BL3ND3R and Tornado.Cash, DeFi swaps, and insurance tools.
For DeFi lending, ADD.xyz is deploying an easy-to-use tool, with up to 15% APR interest. The size and volume of assets in treasuries are already substantial, which keeps prices stable and removes the mental overhead that people have to constantly look for the best lending prices. ADD.xyz and its SDK allow easy integration with multiple wallets, protocols, and currencies.
The platform consists of four layers each of which addresses a specific set of issues. The base layer gives ADD.xyz the settlement options, including Ethereum, Binance, and eventually Facebook’s Diem U.S. dollar-pegged stablecoin. The protocol layer connects ADD.xyz to various protocols such as Compound, 0x, and Kyber. The aggregator layer scans those protocols and finds the best liquidity for any given asset. The final layer of ADD.xyz is the product layer, where businesses and individuals deposit funds to yield interest.
ADD.xyz’s native ERC-20 $ADD token has a total supply of 10 million $ADD, 41.7% of which are allocated to seed rounds. Eight percent are allocated for private sales, while 30% of the amount is evenly allocated towards community, ecosystem, and foundation growth. Also, ADD.xyz comes with a burning mechanism for increasing $ADD scarcity, and a self-governance model in which $ADD can vote for improvement proposals and potential fixes.
The platform’s plans for future development of the protocol include creating additional liquidity rails between traditional finance and DeFi. For example, if users decide to invest GBP, they have to send it to an ADD.xyz partner bank. The platform mints a special GBP stablecoin tied to the user and the amount. The stablecoin is then supplied to money market borrowers, in return for interest. The interest is paid back to the users in GBP.