Academy Press Room Article

Passive Crypto Income Can Benefit Billions of People, OKEx Executive Says at Blockchain Economy 2020, Turkey

2020.02.24

OKEx (www.okex.com), the world’s largest cryptocurrency spot and derivatives exchange, travelled to Turkey to attend the Blockchain Economy, the most-anticipated blockchain summit in MENA and Eurasia last week in Istanbul. While OKEx has conducted lots of conversation over the local crypto scene, Lennix Lai, Financial Markets Director of OKEx delivered his thought about passive income exclusively in crypto market at the event last Friday (21 Feb 2020).

“Blockchain and digital assets are gradually changing how we earn interest. The mainstreams define the social capital on how the interest rate allocates and take banks as the core information and credit intermediates,” said Lennix Lai, Financial Markets Director of OKEx. “Moving forward, based on PoS and DPoS, as well as DeFi lending, it will potentially derive new products that provide interests on a regular basis. This can be mutually beneficial to the traditional financial system, and hence bringing billions of users the advantage of obtaining passive income.”

Lennix Lai, Financial Markets Director of OKEx delivered a keynote speech on 21 Feb 2020.
Lennix Lai, Financial Markets Director of OKEx was invited to media interview on-site.

Unbankedness has become a global challenge

Traditional financial system has recognized challenges. High operational costs of setting up bank branches and providing services in developing or under-developed countries have become an obstacle. The era of low interest rates has brought several undesirable side effects to the real-world economy, especially a damage to banks, who pay extra to store excessive reserves but are unable to pass on negative rates to depositors.

Passive income in crypto

The importance of blockchain, as well as cryptocurrency, can act as an alternative solution in resolving such challenge, where smart contracts hosted on blockchain result in smarter amendments in trade finance at reduced cost.

Permission-less financial instruments can drive down 99% of barrier to create and issue bespoke tradable contracts for anyone to hedge, trade and earn. OKEx Pool now supports staking of 8 mainstream tokens including EOS, ATOM, DAI, and VSYS, etc., with interest rates of as high as 15%.

DeFi vision in OKEx – frictionless economy

Automated smart contract-driven trading can achieve instant settlement with zero counterparty risks, minimizing the need for collateral by 99% and balance sheet in a trade cycle. In terms of DeFi, crypto market serves an alternate benefit to traditional money market. Traditional money market may be limited to local regulation, institutional and capital requirement in terms of accessibility, DeFi lending brings in a global permissionless experience, with on-going monitoring and compliance. Apart from that, the counterparty risk of DeFi lending is much lower than traditional peer-to-peer lending. What’s more, the smart contract also significantly speeds up processing time and improves the ease of use by removing cumbersome paperwork for intermediaries.

OKChain – OKEx-owned commercial public blockchain

A milestone in the development of its DeFi ecosystem, OKEx recently launched OKChain, the commercial public blockchain which supports the creation and release of DeFi applications. Users can build their own DeFi applications based on blockchain technology on OKChain. At the same time, OKEx also rolled out OKEx DEX, the exchange’s decentralized exchange the first application on OKChain. To deliver a better trading experience and liquidity, OKEx DEX supports real-time settlement in a trustless environment.

For event highlights, please visit OKEx’s Twitter.

Event Photos:

The OKEx team was at the venue to meet and greet every visitor of the event.

END


About OKEx

The world’s largest and most diverse cryptocurrency marketplace, OKEx is where global crypto traders, miners, and institutional investors come to manage crypto assets, enhance investment opportunities, and hedge risks. We provide spot and derivatives trading, including futures, perpetual swap, and options, of major cryptocurrencies, offering investors great flexibility in formulating their strategies to maximize gains and mitigate risks.

Media contact:
Vivien Choi
Email: [email protected]
Telegram: @vivienchoi

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