One of the greatest miracles DeFi has to offer is the creation of innovative products and services that solve real problems.
Because of this, the adoption of cryptocurrencies and their underlying technologies is occurring much faster than previously expected.
Technicorum Holdings an IT digital asset and allied technologies development company and NFT and DeFi platform KingSwap have jointly announced the creation of Gennix. The project will officially launch in August.
Gennix is the world’s first micro-lending decentralized finance platform. Having such a project on this scale, size and magnitude will forever change how the micro-lending works.
So, we reached out to Keefe Tan, Project Director of Gennix.
Here is what he had to say.
Keefe Tan, Project Director of Gennix
Congratulations on your successful launch! What’s next for Gennix?
Thank you! Next on our agenda would be to collaborate with a major CEX/DEX to get listed on CoinMarketCap and CoinGecko, and initiate multi-chain expansion to potentially integrate tokenized shares, stocks, commodities and more onto our platform.
Please, can you tell us more about what Gennix stands for?
Gennix is a play on the words: “Next Generation.” As per our mission, we wish to “inspire and enable the next generation of investors to achieve financial freedom.”
How can decentralized lending work in the world today?
In DeFi loans, a borrower has to contribute something more valuable than the sum of the loan in order to receive a loan. So, in order to borrow capital, borrowers will need to collateralize their loans with supplied collateral in the range of 150%-200%. The collateral can be in a wide range of cryptocurrencies, as approved automatically by the smart contract. This is to protect the lender against loan defaults by the borrower.
How lenders operate in DeFi lending is similar to that of conventional lending – where lenders deposit their funds into a pool over a specified timeframe and receive their initial deposit with accrued interest.
Nevertheless, DeFi loans are still risky. The provision of such an exorbitant amount of collateral is a safeguard against steep declines in the value of collateral, bear markets and loan defaults.
How exactly does the Gennix system work?
Gennix is a DeFi Layer 2 lending protocol that is designed to maximize scalability, composability, and growth. The project has been created to promote end-to-end lending and borrowing of digital assets and related financial products by operating on a decentralized network. A game-changing feature that distinguishes Gennix from other DeFi projects is its development on the Binance Smart Chain (BSC) network and the offering of Non-Fungible Tokens (NFTs) with utility.
Layer 2 scaling solutions are classified into state channels and sidechains. Any network participant on a state channel is presumed to act as a validator, which is a fixed list and anyone may use the network on a side chain that has a different validator set. Sidechains are often customized into non-custodial sidechains.
On a custodian side-chain, properties with their own consensus and stability are transferred through a parallel chain whereas non-custodial sidechain assets on the main chain are guaranteed by smart contracts. By incorporating side-chains into the Gennix platform, main chain nodes need not keep every transaction from the side-chain. For example, users might execute hundreds of side-chain transactions, enter the side-chain, and leave with only one main chain transaction.
Gennix utilizes BEP-20 tokens as it is required for DApps on BSC. The use of BSC allows faster and cheaper transactions relative to the Ethereum Mainnet, and provides the additional benefits of trading NFTs. BSC has witnessed substantial growth and user engagement and is sure to grow in the future.
When compared to working on other platforms, working with BSC will provide a substantial advantage, particularly with regard to transaction fees that are about 90% cheaper than what is experienced on Ethereum. As operating expenses for BSC would be lower, this enables Gennix to move quicker in its pursuit of full decentralization by offering members of the community the option to become validators. Compared to the Ethereum network, node operators there were expected to have sizable cash bases in order to become a validator – thus proving to be a barrier to entry.
At Gennix, we have made our borrowing and lending platform effortless and transformative by utilizing the BSC network to drastically reduce gas fees. This encourages network participation within the Gennix ecosystem.
Gennix’s use of TrustScore is the piece that completes the DeFi puzzle, and when employed properly will usher in mainstream adoption via increased security and confidence resulting from this trustless scoring system, inspired by a dominant entity in the crypto space: digisure.ai
Potentially fraudulent transactions will be examined and assessed further to locate their contamination source. These wallets and addresses will be blacklisted and are conspicuous so that users may easily spot them. Consumers will be made aware when interacting with other users who may be potentially fraudulent, thus safeguarding the interests of users on our platform.
Using TrustScore, TrustScore’s patented algorithms will assess a BEP20 address to define its creditworthiness. In order to test credit behaviour only by using this whitelisted BEP20 address, TrustScore scans consumer activity on different loan platforms and protocols. Users can include as many whitelisted addresses as they wish, but the algorithm will only collect relevant financial data from users who need to be assessed when performing a certain activity.
Our method aims to solve the issue of over-collateralization and adds a layer of identification in a decentralized financial ecosystem.
This protocol further supports under-collateralized loans which lower the barrier for borrowers and in turn boosts returns for lenders.
How does the Gennix ecosystem generate income for everyone involved?
Gennix is a DeFi Layer 2 lending protocol that has been created to promote end-to-end lending and borrowing of digital assets and related financial products by operating on public networks. A game-changing feature that distinguishes Gennix from other DeFi projects is its foundation on the latest innovative BSC network and the introduction of NFT yield boosters.
Gennix offers sophisticated financial products to our users. These tools include micro-lending capabilities and a binary options platform. Micro-financing provides investors with a far lower cost in terms of interest than conventional banking and Peer-to-Peer (P2P) markets, with time-binding credit. These loans may be taken directly into the wallets and used for different purposes. For small businesses, microlending offers a big use case of capital fulfilment for their daily operational needs.
Options are considered derivatives, and are often complex and pose a barrier to entry for new entrants into the crypto space. Users often do not understand how these financial tools may be beneficial and fail to reap the benefits they may provide. The base idea of trading options is less exposure of capital to the volatility of the crypto space – while still being able to generate significant amounts of capital.
To counter the complexity of such platforms, we have developed and integrated a binary options platform into our ecosystem. On this platform, users have two options: “Up” or “Down,” thus the term: Binary. Furthermore, our platform is free of the technical jargon that tends to scare off new investors – owing to our simple, yet intuitive UI/UX.
Users will lock their funds into the smart contract temporarily, adding to an increasing prize pool. There is an added feature of a payout multiplier, which grants users an increased payout, thus acting as low-risk leveraged positions.
This enhances the accessibility of the product and assists users in gaining a better understanding of protocol and its operations.
What are your thoughts on the recent explosion of the decentralized finance (DeFi)
As a crypto native with a sound understanding of our current monetary system, decentralized finance has the potential to shift our entire global financial infrastructure on a macroeconomic scale.
Despite a century of innovations, our financial system is far from being perfect. Settlement of financial instruments requires unnecessary time costs and large amounts of human capital. These inefficiencies are only exacerbated by the fact that many decisions that affect billions of people, such as interest rates, are controlled by relatively few people.
Unequal access to financial services has proven to be a huge barrier to entry for both the unbanked, and businesses that require large amounts of capital. This not only proves to be highly unfair, but also stifles innovation.
Decentralized finance leverages the implementation of blockchain technology and cryptography on our current financial system to create access to conventional financial services such as trading, borrowing/lending, and payments in a permissionless, fair and open way.
Users of DeFi protocols can be in any geographical location, yet transactions can be settled almost instantaneously with little to no human involvement. An ordinary person with an internet connection and a browser can access various DeFi protocols with no discrimination against nationality, race, wealth, or income. Better yet – All members can contribute to the ecosystem by building new and innovative DeFi Applications (DApps) and adding value to the global community.
The fundamental characteristics of DeFi are that it is irrevocable, tamper-proof, and immutable – which solves many problems across many different industries. The transparency and visibility of all transactions, trading volume, total debt, and outstanding loans are all available on the blockchain.
What are your thoughts on the regulation of cryptocurrencies and their allied technologies?
The regulation of cryptocurrencies is a necessary evil. Due to the decentralized and autonomous nature of cryptocurrencies today – it provides an avenue for malicious entities to participate in unlawful and illicit activities, sometimes at the expense of others. Hacks of exchanges and the exploitation of smart contracts by anonymous entities has proven to be a major issue that has plagued the crypto space.
This is exacerbated by the fact that no government entity can eradicate cryptocurrencies due to their decentralized nature – as they would have to shut down the internet in the entire world. Nevertheless, the lack of regulatory clarity has resulted in no clear definitions and increased volatility of digital assets.
There are 2 main types of tokens – security tokens and utility tokens. These tokens are fundamentally different in nature, and their classifications determine what regulations these two types of tokens are subjected to. As such, many teams behind these tokens incorrectly classify their tokens, albeit to circumvent existing regulations.
The need for a clear regulatory framework that governs cryptocurrencies and their allied technologies is needed.
Governments do not fully understand the power of cryptocurrencies in that they are deflationary in nature, owing to their limited supply. This is in stark comparison to the minting of fiat currencies and the current debt financing financial infrastructure that is prevalent today. The problem may be that governments are reluctant to give up control over their central banks, as one of their revenue streams is seigniorage profits – the profits from creating value out of virtually nothing. This topic is controversial in nature but needs to be discussed at length in the near future.
Please, can you tell us more about the blockchain-agnostic nature of the Gennix ecosystem?
Being blockchain agnostic is a massive advantage for Gennix as it does not constrain us to the use of a singular blockchain protocol, thus effectively “future-proofing” our DApp against unexpected developments in the blockchain space.
Every day, we see new protocols with innovative attempts to solve various issues that stifle the adoption of digital assets. These include, but are not limited to slow transaction speeds, high gas fees, and increased network congestion. As such, it is common for users to interact with multiple blockchain protocols, though users may not fully understand the underlying technology and reasons behind their creation.
Blockchain agnosticism is simple: it refers to a single platform that allows multiple different chains. With so many options that solve a multitude of different problems, it is difficult to select a blockchain that fits all our operational needs. Therefore, Gennix was developed on the Binance Smart Chain, which is blockchain agnostic.
Please, can you tell us more about the Gennix NFTs?
Most NFTs that have been produced in the crypto space are collectibles which can represent ownership of digitally scarce goods such as digital art or tokenized assets. The trouble with this, is that the value of an NFT is determined by the last price of the last buyer/seller, regardless of how much real world utility the NFT brings.
With Gennix, we have decided to attach utility to our NFTs – for users who purchase and hold our NFTs. This is in the form of yield boosters, trading platform fee discounts and monthly $GNNX token airdrops.
Please, can you tell us more about the $GNNX token?
Gennix will issue a token raise for its Governance Tokens ($GNNX). The purpose of the token is to be used as a store of value and means of payment, including, without limitation, goods and services, and to be used for various utilities within the Gennix ecosystem and its affiliated business partners.
In the universal Gennix protocol, the primary governing process is by online voting by members taking into account the weight of their stake in the exercise. In proportion to the number of tokens staked on the network, each member is entitled to voting privileges.
To be able to vote in the Gennix ecosystem, the users must stake the minimum number of tokens required. To represent the interest of larger shareholders who have a vested interest in the success of our token, there will be a fair voting system, where participants who stake 400,000 $GNNX tokens and above will get 2 votes, whereas those who stake less than 400,000 $GNNX tokens will receive 1 vote.
Stakeholders may submit a resolution to the voting community and request for community representatives to participate.
As a $GNNX token buyer, you can use $GNNX to access the Gennix platform to:
Stake $GNNX to generate yield
Interact with the borrowing and lending protocol
Gain voting rights to set the direction of the Gennix ecosystem
Purchase exclusive Gennix NFTs
Do you have any plans for launching any new $GNNX distributed ledgers?
The Gennix ecosystem is on the Binance Smart Chain. At its core, a blockchain is a digital ledger of transactions that are duplicated and distributed across an entire network of computer systems. This decentralized database is managed by multiple participants who secure the network, thus giving rise to the term – Distributed Ledger Technology.
What are the advantages of launching tokens on the Binance Smart Chain (BSC)?
Activity has surged on the BSC network. As such, there are various opportunities to effect change in the DeFi ecosystem, ranging from Token Swaps to decentralized automated marketing to the application of Non-fungible tokens (NFTs). The BEP-20, BEP-721 and BEP-1155 token standards are all supported on the Binance Smart Chain.
BSC was built from the ground up to be EVM (Ethereum Virtual Machine)-compatible, which means it began supporting the large ecosystem of Ethereum tools and DApps right from the start. With this, developers would be able to migrate their applications easily from Ethereum. It implies that third-party apps may be made to function on BSC with little effort. Binance Smart Chain blocks are on average 3 seconds apart.
Using a dual-chain architecture, the notion is that users may move assets across blockchains without having to worry about cross-chain compatibility. By this method, users may trade at a lightning-fast pace on Binance Chain, while Dapps like Gennix may be constructed on the BSC. Because of this universal connectivity, users are presented with a broad array of options to meet a variety of requirements and functions. BSC makes it possible for assets from other chains to be integrated into the expanding DeFi ecosystem. As Gennix runs on the quick processing capabilities of the BSC platform, it will enable users to enjoy quicker transaction processing times, lower transaction fees and increased scalability.
Development on the BSC also allows for cross chain DeFi mechanisms that increase our ecosystem’s interoperability. Also, the Binance Smart Chain is blockchain agnostic (Already covered). Lastly, the BSC ecosystem already boasts a huge community and network of major projects and protocols that are already in collaboration with BSC.
How does the Gennix ecosystem protect its users against volatility within the cryptocurrency space?
The crypto space is still relatively young and is notoriously volatile. As such, our implementation of yield generating staking pools and interest accrued from lending on our platforms enables our users to continuously gain capital whilst being vested in the crypto space – thus generating income regardless of market conditions.
More importantly, we have conducted intense internal audits on our Non-Fungible Tokens (NFTs), our native $GNNX token and our entire ecosystem – and have plans to conduct external audits from reputable third parties to ensure the safety and security of the funds of our users.
Where do you see the Gennix ecosystem in the next decade?
After performing intense competitor analysis across various DeFi/CeFi borrowing and lending protocols – understanding how they operate, the utility derived from these platforms, what functions are most popular and most utilised, and their shortcomings, we have integrated our DApps to position Gennix in a position to become a dominant player in the crypto borrowing and lending industry.
We foresee ourselves capturing a large portion of the market share from the incumbent CeFi/DeFi projects and protocols such as AAVE, Compound, Celcius and BlockFi.
Also, many existing borrowing and lending protocols were developed on existing technologies, with high fees and slow transaction speeds. This already sets us apart from many of our competitors, and uniquely positions Gennix on an upward trajectory, set to go parabolic.
How can the Gennix ecosystem be used to solve problems in developing countries such as access to credit?
DeFi loans are notorious for having to supply an exorbitant amount of collateral in order to take a loan. This is not feasible for users in developing countries as the idea of having to supply up to 200% worth of collateral does not make sense – as these borrowers do not have capital in the first place, which is why they need to take loans.
Gennix solves this problem by offering microfinancing, together with the integration of TrustScore capabilities (as mentioned above) which allows users to take small loans, with lower collateral ratios over time. This allows the aforementioned target market small loans to cover their daily expenditure.
In such countries where their native fiat currency is sometimes prone to hyperinflation, the adoption of cryptocurrency is inevitable – due to its deflationary characteristics. This opens up the doors to borrowing and lending in the crypto space. Users will be drawn to the platform that offers them the highest utility, lowest fees and lowest collateral ratios; therefore putting Gennix in a unique position to cater to this market.
How can projects like Gennix be used to bridge the gap between the banked and the unbanked?
This question boils down to the characteristics of decentralized finance in that it is fair, permissionless, censorship-resistant, efficient, and open.
It does not matter if a user belongs to either category of being banked or unbanked. Everyone is treated in exactly the same way. As long as a user has a browser and an internet connection, they have access to DeFi tools like Gennix that aid the unbanked in generating significant amounts of capital – thus boosting their socio-economic status in a world where financial inequality is prevalent.
What are your plans regarding Gennix for generation Z?
The users of Generation Z grew up with technology, the invention of computers was seemingly a huge technological innovation to prior generations – but this was already present in the lives of the Gen-Z population. With the internet being a critical part of our lives, Gen-Zs is one of the most highly exposed, and most welcoming of the adoption of cryptocurrencies and blockchain in general.
Many Gen-Zs are blinded by the quick “get-rich schemes” from various other people across the globe. They are exposed to extremely high-risk derivative tools such as Futures. This poses a risk – as this age group may not fully understand how these derivatives work, thus risk losing their entire capital.
Enter Gennix provides a solution to this problem, by allowing Gen Z users to generate sustained capital via our lending platform and staking pools. If they are looking at exposing themselves to a higher amount of risk, they can interact with our binary options platform, which provides a controlled risk environment with no chance of liquidation.
Do you have any secrets to tell us? Care to spill the beans?
If you had three wishes and a Genie that could make them come true, what would they be for Gennix?
If I had 3 wishes, here is what I would wish for:
For Gennix to overtake the incumbent borrowing and lending protocols/projects.
- This is not for personal reasons. Gennix genuinely solves a problem in the crypto space. Users who adopt and utilise our ecosystem will benefit more, relative to other platforms/protocols. We introduced Gennix to benefit the global community, and we strive to serve our users and investors to the best of our abilities.
For Gennix to be successful over both short term and long term horizons.
- There are countless projects/protocols that claim to solve various problems – yet we see so many projects getting their liquidity siphoned into the hands of malicious hackers/bad-actors (colloquially known as “Rug-pulls”). The lack of credibility in the crypto space is one of the reasons that has fueled us to create a platform that is safe and secure.
To achieve the Gennix mission and vision of putting the most relevant, most efficient and most convenient sophisticated financial tools into the hands of both retail and institutional investors.