Wirex & DeFi Protocols
Wirex’s ecosystem has been calibrated to maximise DeFi participation throughout this once-in-a-generation shift to Web 3.0. This is underwritten by Wirex’s native token, WXT, and the development of the Wirex non-custodial wallet. As use cases arise and participation scales, Wirex will actively develop and release new products and services to maximise the potential of DeFi within the metaverse. DeFi protocols are an integral way for individuals to participate in and consume various decentralised financial products and services. These can range from relatively simple savings and earning protocols to complex financial products involving marginal trading and other techniques historically associated with institutional investing.
Wirex recognises that improved protocol governance models are required to increase participation in decentralised finance. Much has been written about ideal governance models, and the best ways of avoiding the formation of plutocracies. Many people embrace decentralised finance to obtain freedom of ownership of assets or decision making, only to find that protocols are funded by venture capital or a small clique of whales. This generally corresponds with the majority of voting rights being held by a small number of actors who may not make decisions in the interests of the majority of smaller, retail participants. In recognition of this paradox, Wirex has decided to support protocols which offer ‘true metaverse governance’, rather than directly owning a protocol outright. Wirex will use its native WXT token to fund such protocols on a case-by-case basis. Such investment may be in the form of a WXT loan, or by ‘gifting’ WXT where a positive case is made for the benefit of WXT holders and protocol participants. Before any investment or gift of WXT will be made, the following criteria must be met:
- The protocol must have a governance framework which will be scalable and truly democratic in a Web 3.0 metaverse.
- The investment, grant or gifting of WXT tokens must have a long-term positive case for existing WXT holders (i.e. widen their access to new products & services and /or appreciate the value of the WXT token).
- There must be an agreed mechanism whereby Wirex will remain absent from the major governance decisions to maintain the integrity of the protocol’s independence. Wirex does not wish to play an active role in the protocol once established, instead supporting a community-driven structure.
Wirex believes it has specific advantages as a protocol partner, namely:
- An existing, established DeFi-friendly userbase of over 4.5m customers.
- A circulation of 10bn Wirex Tokens (WXT) with tens of thousands of holders. WXT is liquid and available on both centralised and decentralised exchanges.
- Established, existing use-cases for WXT. Whereas many DeFi protocols begin at concept stage with tokens and business cases integrated within a future roadmap, use of WXT ensures an immediate product with an exchangeable, liquid token.
- A DeFi-ready ecosystem aimed at mass participation. WXT is an integral part of Wirex app, used as part of the world-leading Cryptoback™ programme.