SmartDeFi is the platform Corporate America is waiting For

SmartDeFi is a minting platform set to be released by the community behind FEG, a decentralized cryptocurrency. The development team intends to introduce a new standard of token focused on the elimination of liquidity crypto scams, known as rugpulls, as well as smart contract features which will enable lending and asset backing capabilities. These features address many problems plaguing the crypto space today, and align with the expectations of a rapidly growing, and more knowledgeable crypto investor.

One type of investor is corporations, which look at the current crypto landscape and see an innovation bonanza made entirely of hype and the application of computer programing to address stale financial practices. Some entities have taken the plunge to explore viral marketing possibilities. Companies like Long Island Ice Tea have seen 500% stock price increases just by adding the word Blockchain to their name. Budweiser has bought the beer.eth crypto domain address. Visa has bought Cryptopunks NFTs and Mcdonalds has created their own McRib NFTs. The future relationship between corporate brands and the cryptoverse seems inevitable.

Budweiser’s Twitter feed at the time of publication.

Companies already have the crypto equivalent in “points programs”.  It’s been reported that Starbucks is the largest non-registered bank entity in the world. This is thanks to their points program. With over 12 million loyalty card members registered, and over $1 billion in cash stored at any given moment, anonymous bank officials say “The company functions more like a fintech than a coffee company.” This is true for a large number of brands who use apps, gift cards, and credit card agreements to capture and reserve money for exclusive use at their establishments. Open your wallet now and you can get a physical representation of what your crypto wallet will look like in 5 years. You will have your credit card which in the future may save your balance in “credit ” tokens. Crypto-centric credit cards already exist, like cards which use CRO. Your Target gift card would be target coins, your Dunkin Donuts reload card would appear as DD tokens.  If you are a small business owner, you may find your own token instead of a couponing system. Your future wallet could have coins set aside to pay property taxes like “Orange County coin” or saving for your next car with Honda token. 

As an example of why you would be a holder of Honda token, I offer simple theoretical tokenomics.

When you bought your last Honda, you were given 1000 Honda tokens. While you hold this token in your wallet, you get a percentage of every buy or sale of a Honda car or service maintenance. You also get discounts for using Honda token instead of cash or other tender. This is a win-win for the consumer earning tokens toward repairs or a new car, and the manufacturer gets consistant brand loyalty. The future focus of sustaining a consistant community of loyal customers will create less wasted ad revenue.

But why are there no Coca-Cola tokens? No Toyota coin? What is keeping name brand companies from creating their own cryptocurrency?

The obvious answer is security. Companies do not want the PR nightmare of their loyal customer base being hacked. Unfortunately the same computer programing that drives innovation also opens the space to theivery. When anyone can make a cryptocurrency with wild parameters and pay influencers a few hundred dollars for perceived legitimacy, it truely does become the wild west of finance. New technologically complex scams mix with old fashioned social engineering hacks to create an uncertain and frightful place to put hard earned money.

Exchanges where you can mint new tokens, could enforce restrictions on parameters when using their platforms, however, in the Decentralized space, every exchange uses a cloned open source version of a 2018 release of a platform called Uniswap.

Since its release, the focus of each cloned exchange or “swap” is to offer the same services as Uniswap, with emphasis on using a unique governance token and offering “swapping” or exchanging one token for another, as a utilitiy. Since this code is two years old, and there’s no market to upgrade the code, no one is able to address the 2021 problems we face today. Instead companies like Certik evaluate projects and determine risk based on red flags they may find in the code. This inspection system is far from perfect, ultimately being an informed opinion made by a team of individuals in a field that’s only a few years old. This has led to a knowledgeable investor base which look for anecdotal evidence of a tokens success, and with so many tokens produced, by the time you find a safe token to invest in, the spotlight has moved on. So what is the solution?

On April 1st 2021, the development team of the FEG token, lead by mysterious smart contract creator “FEGrox” released the FEG exchange, or FEGex for short. Created from scratch code, it was built from the ground up to tackle contemporary problems in the DeFi space. By starting with a new code authored in house, FEGex can offer unique utilities compared to the competition. This means the security issues can be addressed head on in the SmartDeFi platform.

No more rugpulls. Right now, you can create a token and state a portion of money is set side to ensure investors can buy and sell the token freely. If you invest $100 into a token, you want to know that you can get that $100 or hopefully more back at any time. This is basically known as liquidity. The current problem is that the creator of the token can create a token, put the money aside, and when investors come in, because they own the money put aside, they withdraw it and run off with the investors gains. With minting a token on SmartDeFi, the owner forfeits the liquidity needed to mint. This money is placed on the block chain itself and forever reserved for use by the smart contract. 

The contract is self contained. This means you do not need an exchange to interact with the smart contract. A simple UI system can place the ability to buy or sell an SD token directly on any website. This means that a corporation can ensure safe interaction with the contract because they broadcast the UI directly from the corporate website. 

SmartDeFi offers simple solutions to the worries of corporate brands. As more investors in crypto become users of crypto, the siren song of financial progress will become too loud to endure, and these major brand names will make their most educated guess as to what may be successful in the future, and any project which emphasizes security and constant contemporary innovation will be the most enticing while still being the safest bet.

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