Infinity Exchange announced the launch of its testnet to attract more institutional funding in the decentralized finance (DeFi) market.
Infinity Exchange, a decentralized finance protocol that provides unprecedented capital efficiency for traders, yield farmers and real money investors, has announced its official launch its testnet.
According to media reports, the Infinity Exchange team said in a press release shared with Coinjournal that the move is to create the next $1 trillion market in the cryptocurrency space.
The team stated that the launch of its testnet is an important milestone aimed at bringing institutional interest rate market mechanisms and risk management from TradFi to the DeFi market for the first time.
This will enable institutional adoption of DeFi and increase total value locked (TVL) in the wider industry.
Infinity Exchange believes it is revolutionizing the DeFi ecosystem by building a protocol that leverages the same mechanisms and achieves the same efficiencies associated with the TradFi market, especially the interbank lending market .
Infinity Exchange added that it will also introduce the first full yield curve in DeFi with floating and fixed rates, enabling traders to hedge their basis/interest rate risk and Speculate throughout the term. maturity curve.
Infinity Exchange founder Kevin Lepsoe commented on this latest development:
“The crypto fixed income market It should be 100 times what we are now, and we are taking the first two steps in that direction,” he said, “We are introducing an agreement on agency quality interest rates consistent with theoretical finance, while taking a comprehensive risk approach
In TradFi, institutional investors are more active in the fixed income market than in the stock market. If we want to have more Institutional adoption, we need to first identify the fixed income market, and from here, at Infinity.”
Finally, Infinity Exchange stated that it will be able to Manage a variety of complex collateral that currently cannot yield yield. The move is expected to provide traders with a unique opportunity to arbitrage the spread between other lending protocols and Infinity,
The team noted that it is working on crypto-based institutional fixed income Prepared the market and paved the way for the mass entry of TradFi investors into DeFi. Thus, creating the next $1 trillion market.