Introduction
Background
Decentralized Finance (DeFi) created a system that was permissionless and censorship-resistant, two key advantages over traditional finance. However, those advantages led to unexpected obstacles, namely transaction traceability and scalability issues.
The transparency of blockchain that makes DeFi permissionless and decentralized keeps many whales and institutional players on the sidelines. The public nature of DeFi puts their proprietary trading strategies at risk and opens them up to costly front-running attacks.
It turns out that privacy is a financial primitive. Without privacy, institutional players and whales remain hesitant to enter DeFi, but with privacy they have a safe place to make markets and trade anonymously via dark pools. Plus, Poseidon is versatile enough to satisfy future regulations – it keeps data on-chain protected from competitors while allowing off-chain data to be audited by approved parties like regulators.
Privacy also makes DeFi a safer place for regular retail investors. The DeFi space is relatively new and is plagued by shallow liquidity pools creating a volatile environment for traders. By attracting large amounts of capital through privacy protections, Poseidon matures the DeFi space providing a more stable and secure place to lend and borrow. Poseidon’s zero-knowledge functions also give users more control over their data.
Another issue DeFi has is congestion on Ethereum. Since most DeFi protocols are based on Ethereum, there are not many options for regular users and the space is compartmentalized. Poseidon has a multi-chain architecture to relieve the stress on the Ethereum network and link it to the other ecosystems in space.
To summarize, open financial systems of the future will require networks that:
Can handle large transaction volumes
Has low fees
And above all, offers the privacy protections both institutional and individual traders
Poseidon matures the DeFi space by attracting institutional capital, deepening liquidity pools, and linking to isolated ecosystems.
What is Poseidon?
Poseidon is a decentralized, cross-chain zk-powered money market protocol built on Findora that can preserve user privacy yet is capable of being audited and working within regulations. It offers zk-instruments, such as “confidential contracts” that encrypt inputs, outputs, and state data. Trade, lend, and control your personal information across multiple blockchain ecosystems.
Built on the principles of interoperability and privacy, Poseidon provides the foundation for an open & accessible financial system in the future and lets you lend, borrow, and earn with your crypto assets – without revealing your identity on-chain.
The Poseidon Liquidity Market (PLM) protocol enables users to effortlessly lend, borrow, and earn interest with their digital assets. Depositors who provide liquidity can earn passive income, while borrowers can take out over-collateralized loans.
Why Poseidon Finance
First Lending Protocol on Findora
Built to be easy to use and maintain user privacy, Poseidon is the first money market protocol to capitalize on the Findora ecosystem. Users can take out loans backed by their crypto tokens or earn passive income by lending without revealing their identity on-chain.
Community Oriented Tokenomics Mechanism
DON features a community-oriented design – 50% of DON tokens are allocated to yield farming for the long-term sustainability of the protocol, and 20% to rewarding liquidity providers.
Pioneering Permissioned DeFi & PriFi
Poseidon leverages cutting-edge cryptographic algorithms, including Bulletproofs and Turbo-PLONKs to support private lending and borrowing for both institutional and individual users. Even though on-chain information is protected, identifying information can still be revealed to regulators for compliance.
Multi-chain Vision
Poseidon is integrated with multiple bridge partners to enable trustless and permissionless cross-chain transactions, providing programmable & composable privacy solutions to other ecosystems.
NFT Collateralization
Poseidon lets users take out loans collateralized by NFTs. Not only will consumers be able to leverage their NFTs, but financial institutions can issue financial instruments as NFTs that can then be borrowed against.
ZK-DID
ZK-DID stands for zero-knowledge decentralized Identity and allows users to prove access rights without revealing their identity. ZK-DID leads to a censorship-resistant Web3 that gives users control over personally-identifying information (PIP).
Poseidon’s Mission
Poseidon aims to bring privacy to DeFi lending and borrowing. Through privacy, Poseidon empowers institutions and whales to trade using DeFi, providing a safer, more stable environment for retail investors.
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