✔️Mid-term mission

(Q4 2024 - Q1 2025): Bridging TradFi and DeFi for the asset and wealth management industry

The second step consists in a progressive incorporation of DeFi solutions into the SMAT platform.

Blockchain-based DeFi, is the latest advancement, which aims to solve the problems of TradFi, namely centralization and lack of transparency. Unlike TradFi, DeFi does not rely on financial intermediaries, these actors being substituted by a large spectrum of dApp powered by blockchains with built-in smart contracts, oracles and protocols ensuring network security.

DeFi comprises a broad range of financial services, including decentralized exchanges (DEXes), yield farming or liquidity provision, decentralized autonomous organizations (DAO) governance, lending platforms and payment gateways.

During the last two years, incredibly successful DeFi projects have been developed offering new ways to lend, trade, and borrow, by using Peer-to-peer (P2P) financial transactions. According to a report issued by Goldman Sachs Global Investment Research, since the DeFi industry has exploded, the total value locked in DeFi protocols has increased 900% from under $10 billion during the first half of 2020 to nearly USD 100 billion in January 2022.

DeFi protocols are continually evolving and iterating upon models of financial-based agreements, fueled by their inherent advantages of permissionless composability and open-source development culture.

The last DeFi 2.0 protocols are to be built and/or integrated into the SMAT platform in order to allow professional investors to leverage DeFi solutions. SMAT wants to integrate DeFi into traditional financial services and provide access to protocols within the SMAT ecosystem with a simple user interface.

The technical specificities of the SMAT's tokenization protocol are further described in section 6.2 below.