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A consortium of Ethereum-based decentralized finance (DeFi) protocols and initiatives have announced DeFi for the People, a collaboration of international crypto-focused organizations united by a shared goal: bringing DeFi to the 6 billion mobile phone users across the globe.
Developed on Celo, the project includes Aave, Curve, Sushi, PoolTogether, 0x, UMA, Valora, Ubeswap, and Moola Market among its founding partners.
Education and infrastructure partners reportedly include Chainlink, RabbitHole, The Graph and Wrapped.com. This new initiative will provide over $100 million in educational projects, grants, and various incentives. The majority of participants will be contributing half the funds for incentive programs.
Complete product integrations with PoolTogether, Sushi, Moola Market, Ubeswap, and Valora are currently available, with more coming soon. Beginning August 30, 2021, rewards will be available for PoolTogether on Celo, and incentive pools with other DeFi protocols and initiatives will be launching soon.
Also launching during this fall is Optics, a “gas-efficient” interoperability protocol for cross-chain communication. With Optics, users may move assets between Celo and Ethereum.
DeFi has undergone dramatic growth during the past few years, however, it has yet to gain truly mainstream adoption.
Out of the estimated 5 million consumers across the globe presently utilizing DeFi apps, less than 10% are based outside of developed nations. DeFi for the People will aim to change that by bringing application builders together to launch products that make DeFi a lot more accessible for the people who may need these services the most.
For billions of individuals, a mobile phone has become their most important device and usually their only access to the Internet.
Celo’s mobile-first platform—with more than 1 million crypto wallet addresses across 113 countries— offers a great opportunity to bring the benefits of DeFi to people with a mobile phone. New real-world apps for DeFi with Celo are currently being developed.
For instance, in Colombia, where last year, at the start of the COVID outbreak, a pilot program had offered unemployed professionals with undercollateralized micro-loans via Celo. The loans allowed people to buy motorized bicycles so they could deliver for Rappi.
With easy access to the appropriate equipment, some members of the pilot had been able to double—and in some cases even quadruple—their revenue. This is only one example of how DeFi will be able to offer quick access to capital for millions of individuals, especially for those in emerging markets where access to regular financial services has been restricted.
Rene Reinsberg, Co-Founder at Celo, stated:
“DeFi for the People aims to make DeFi accessible to everyone by powering real-world use cases and focusing on mobile-first adoption. We’re excited to collaborate with the biggest projects in DeFi to bring more than 1 billion new users into the DeFi ecosystem over the next five years.”
PoolTogether, an open-source and decentralized protocol for no-loss prize savings, is currently live on Celo with over $500,000 in prizes. Users are able to deposit into PoolTogether on Celo for an opportunity to claim prizes, and if they don’t win, they still get to keep all their deposited funds.
This has been made possible because prizes are funded by the interest generated on deposits. PoolTogether is a considered to be a “no lose lottery” because everyone who participates gets to keep their funds.
Leighton Cusak, Founder at PoolTogether, remarked:
“Research shows prize savings is one of the most important and effective on-ramps into savings for underbanked people. PoolTogether on Celo can facilitate crypto and DeFi adoption for the unbanked and users in developing markets who benefit most from low gas fees and fast transaction times.”
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