Infinity Exchange has announced the launch of its testnet to attract more institutional investors in the decentralized finance (DeFi) market.
Infinity Exchange, a decentralized financial protocol that offers unprecedented capital efficiency for traders, yield farmers and real money investors, has announced the official launch of its testnet.
According to a press release shared with Coinjournal, the Infinity Exchange team said the move is to create the next trillion dollar market in the crypto space.
The team said the testnet launch is a significant milestone aimed at introducing institutional interest rate market mechanics and risk management from TradFi to the DeFi market for the first time.
This will enable institutional adoption of DeFi and increase Total Value Locked (TVL) across the industry.
Infinity Exchange believes it is revolutionizing the DeFi ecosystem by building a protocol that utilizes the same mechanisms relevant to the TradFi market, especially the interbank lending market, and achieves the same efficiency.
Infinity Exchange will also introduce the first full yield curve in DeFi with both floating and fixed rates, allowing traders to hedge their basis/interest rate risk and speculate along the full length of the maturity curve. added.
Commenting on this latest development, Infinity Exchange founder Kevin Lepsoe said:
The cryptocurrency bond market should be 100x what it is today, and we are taking the first two steps in that direction, he said. We take a comprehensive approach to risk management.
At TradFi, institutional investors are more active in the bond market than in the stock market. If we want to get more institutional investors into cryptocurrencies, we need to nail the bond market first, and that starts here at Infinity. “
Finally, he said, the Infinity Exchange will enable management of a wide range of complex collaterals that currently have no place to generate yield. The move is expected to provide traders with a unique opportunity to arbitrage interest rate differentials between other lending protocols and Infinity.
The team noted that it is preparing a cryptocurrency-based bond market for institutional investors, paving the way for many TradFi investors to enter DeFi. So next he will create a trillion dollar market.