Stellar is revolutionizing access to decentralized finance (DeFi) for underbanked communities by offering an extensive network of ramps integrated with smart contracts through Soroban.
DeFi has emerged as a game-changer in the financial industry, promising greater inclusivity and accessibility. However, many underbanked and unbanked individuals, particularly those in developing regions, struggle to fully benefit from these services. The high transaction costs associated with platforms like Ethereum and centralized exchanges create barriers for these users, making DeFi economically unattainable. While more affordable options exist, they lack the necessary infrastructure to reach underbanked communities. On and off-ramps are crucial services that facilitate the conversion between fiat currencies and cryptocurrencies.
To address these challenges, Stellar, an open-source blockchain specializing in payments and asset tokenization, offers a solution. Stellar’s platform supports a wide range of popular assets like USD Coin (USDC), enabling users to engage in smart contracts and utilize these assets efficiently.
By integrating smart contracts, users can participate in advanced financial activities such as staking, borrowing, lending, and yield farming. Soroban, Stellar’s smart contracts platform, further enhances these capabilities by leveraging its robust features and established network.
Soroban benefits from a network of ramps, assets, and market services, including partnerships with entities like MGI, a variety of fiat-denominated assets, and innovative products like the Anchor Platform. These partnerships offer compatibility benefits through Stellar Ecosystem Proposals (SEPs), expanding access to on and off-ramp services globally.
Stellar’s infrastructure plays a vital role in reaching new users and addressing unmet needs within the global financial ecosystem. Soroban democratizes access to DeFi, allowing users to engage with financial services globally without the need for a traditional bank account, benefiting individuals in regions with limited access to financial services.
From a development perspective, Stellar provides opportunities for builders and entrepreneurs to tap into underserved markets. The network’s reliability and scalability ensure uninterrupted services, fostering user trust and retention. Soroban’s scalability enables the ledger to handle increased activity as transaction volumes grow, supporting sustainable blockchain integration in the long run.
Stellar has allocated significant funds to support the growth of the Soroban platform, encouraging the development of decentralized applications (DApps) that leverage its smart contract capabilities. This investment aims to promote financial inclusivity and accessibility by fostering innovation within the Stellar ecosystem.
With a growing number of projects actively developing on Soroban, including lending and borrowing protocols, automated market makers, and oracle services, the Stellar network continues to attract innovative financial applications. Stellar’s infrastructure, supported by Soroban, offers scalable and inclusive pathways to DeFi, bridging financial divides and empowering economic participation worldwide.
Discover more about Stellar and its new smart contract platform to explore the transformative potential of blockchain technology in the financial sector.