Integrating the latest blockchain innovations, Pay Wink Ltd. explores the latest DeFi use cases with the objective to revolutionise the traditional finance landscape.
So far, three critical use cases have been assessed by Pay Wink:
- Token deployment on ERC-20 / BEP-20 / Polygon - Scrutinising the dynamics of stablecoins in global payment networks and the future of international payments;
- NFT Platform – Introducing a solution for asset tokenisation and a way for decentralised ledger transactions;
- DeFi platform and bridge to conventional finance (CeFi) – Exploring how DeFi currently facilitates payments, securities and insurance trade, as well as lending and borrowing. Pay Wink will develop a prototype platform to have a better understanding of how to connect DeFi and CeFi.
Mission of Pay Wink
Moving forward, the solutions provided by Pay Wink aim to facilitate the convergence of conventional and decentralised finance, while also complying with multijurisdictional regulatory requirements and connecting worldwide markets to establish a global financial infrastructure.
Ultimately, the efforts of Pay Wink will contribute to increased user-friendliness of DeFi, enhancing the widespread adoption of these innovative blockchain technologies.
Introducing AMM Solutions
While cross-border remittances are critical to the survival of many developing countries, excessive fees and lengthy processing periods may make timely transfers impossible for those least able to afford them.
Nowadays, the influx of remittances payments is at an all-time high. However, fees for remittances are also at an all-time high, with the greatest detrimental effects falling on those in need.
Aiming to alleviate these issues, Pay Wink is developing various DEX AMM-related solutions that are not crypto-based to examine DeFi's potential for cross-border payments and assist the most vulnerable. Overall, the main difference between DEX and OTC is that DEX enables direct trading between multiple participants.
Innovating Liquidity Mechanisms
Pay Wink currently concentrates its efforts on using AMM to operate as a DEX. Overall, liquidity is supplied by holders of various tokens in order to enable an AMM to function as a DEX, and liquidity providers are often entitled to be compensated with a percentage of the fees paid by those trading tokens.
Furthermore, Pay Wink has constructed stablecoins on the Ethereum, Blockchain, and Polygon smart contract-based blockchains to evaluate their use for cross-border payments. Nonetheless, the difficulty is that they often lack the liquidity required to fulfil the use case.
To investigate possible use scenarios, Pay Wink has also deployed AMM (a collection of liquidity pools) to evaluate the feasibility of opening liquidity pools to offer liquidity for its stablecoins. Concomitantly, as an FCA-registered PSP, Pay Wink would offer fiat on and off-ramp.
It is possible to link these liquidity pools together if a pool exists for stablecoin A vs stablecoin B and stablecoin B versus stablecoin C, the seller of stablecoin A might purchase stablecoin C without first locating a buyer of stablecoin B and a seller of stablecoin C.
Considering the enhanced liquidity facilitated by these stablecoin pools, remittance corridors would become more affordable.
Learn more about what the future of decentralised exchanges looks like by accessing the website of Pay Wink https://paywink.com/.