Introducing Avem: The Institutional DeFi Infrastructure
02 May 2022|
Avem presents itself as the institutional DeFi infrastructure built as a layer 1 blockchain. The chain is developed on top of Polkadot, allowing Avem to own a parachain inside the Polkadot ecosystem and can thus offer financial bankable products to its users, both retail and institutional, on top of its customizable ledger in an interoperable and scalable way.
The next DeFi challenge
Decentralized finance (DeFi) has succeeded in the world of cryptography and finance, reaching a total value locked (TVL) of over $100b by the end of 2021 thanks to the creation of a financial ecosystem enabling token-holders to earn passive income from their crypto assets. Mass adoption from traditional finance is getting closer and closer; we are starting to see the evolution of the existing systems transforming in the direction of crypto and DeFi.
What’s next? The next DeFi challenge comes through the creation of bankable protocols along regulations, interoperability and scalability of infrastructures and building solid ecosystems with connection to jurisdictional assets. Avem emphasizes these key aspects with the creation of a fully compliant blockchain, building its own technology inside Polkadot and gaining a constant demand by being part of the quantum financial system (QFS).
In other words, Avem is a DLT Bank. The word “DLT’’ refers to Avem using the full potential of the blockchain world as it builds its own fully decentralized infrastructure offering its financial products in a distributed ledger technology and the word “Bank” refers to Avem’s focus on the acquisition of various licenses that enable the institutional adoption inside its ecosystem.
As mentioned above, Avem has its own layer 1 blockchain inside Polkadot and therefore allows us to be a parachain. Polkadot is a relay chain layer 0 network that enables cross-blockchain transfers of any type of data or asset, not just tokens, among its dozens of parachains, allowing the chains to interact with each other in a meaningful way. This ecosystem provides unprecedented economic scalability by enabling a common set of validators to secure multiple blockchains and provides transactional scalability by spreading transactions across multiple parallel blockchains.
Avem, along with the rest of the parachains, remain independent in their governance, but united in their security. Network upgrades are coordinated on-chain and enacted autonomously and without forking the network, ensuring that the development of Avem and Polkadot remains future-proof and community-driven. Also the whole ecosystem consumes a small fraction of energy thanks to its next-generation nominated proof-of-stake (NPoS) model — equivalent to 7 US households’ worth of energy per year — having the lowest carbon footprint among proof-of-stake protocols.
The main features of Avem include, among others being a permissionless ledger, where any developer can build its own bankable DApp, apart from being interoperable and scalable, benefiting from the Polkadot cross-chain ecosystem.
The blockchain operates with a delegated proof of stake (DPoS) system, where users are allowed to participate in the creation or delegation of nodes thanks to the blockchain’s native token lock-in. This provides a yield to the user in exchange for validation activities in the network, forming an underlying economy where each actor benefits from the ecosystem.
Utility tokens, security tokens and NFTs can be traded within the ecosystem as Avem provides its own institutional wallet, apart from being able to access through third party hybrid wallets. The chain offers a fully decentralized custodial service and also features the possibility of zero-knowledge proof inside the layer 1. The entire technology is built on Substrate through Rust and is EVM compatible.
Great technology needs a great vision behind it. It can be observed how users are flowing from the traditional finance space into the crypto space as it is all about advantages. Institutions have seen this new trend and are now evolving in order to not be left behind. Here is where Avem comes in. The reason why Avem is going to change the world is that the main focus of the team is to solve the big problems that DeFi will face in the future, such as regulations, security, and complexity, with a fully law-abiding protocol based on blockchain technology.
The company’s services are aimed at people and institutions that are looking for a way to enter the crypto world with a regulated and serious protocol in which they can finally feel safe through an infrastructure that is fully respectful of the law and offers attractive financial products.
“Avem is built with the objective of bringing finance to everyone, no matter who or where you are, thanks to blockchain technology. The next generation of DeFi should make the industry more accessible to everyday users and thus build greater trust through quality protocols and product transparency. ” — remarks the Avem Team.