Introduction.
As of today I'm basically out of the Ethereum DEFI space. I have a very low income, but over months I managed to gather some capital to invest in crypto projects. At the beginning of the year transaction fees (called Gas fees) were generally low, things changed the first week of January when Ethereum's price rapidly rose.
Even though I am in a developed nation, the $30 to $60 Gas fees are a significant amount of money to me. Ethereum 2.0 is years away and the crypto bull market is not slowing down, so it looks like these fees are here for long time.
The last straw was when I wanted to take some profits and put them into other projects. I realized that I had ended up spending $100 in Gas fees one day. Despite doing so at one of the cheapest times according to gas price tracking websites. I became so fed up, that I began looking seriously for alternative DEFI ecosystems that I could use that wouldn't present that problem.
My desire wasn't wholly based out of self-interest. I truly believe that many problems in the world are due to the traditional/centralized financial system and that we need a decentralized financial system - with governance by the people, for the people.
I was also aware that in some developing nations $100 is more than the average person makes in a month. So Ethereum Gas fees have priced those people out of using DEFI projects built on the network.
DEFI can't be the future of finance if it prices out the poor due to transaction fees.
After my experience, I found a deeper appreciation for the Bitcoin Cash project, especially with the community's emphasis on low transaction fees, speed, and accessibility to all.
However, there is also a need for a smart contract network that DEFI DAPPs can be built on for the masses. A smart contract network that is focused on DEFI, along with low transaction fees, speed, and accessibility to all.
I believe that blockchain is Wanchain. Unlike other blockchains, the specific focus of Wanchain is on DEFI Dapps. Like the Polkdot blockchain it has cross blockchain capability built into it (interoperability).
https://www.wanchain.org/learn/
So, I'm about to argue that the Wanchain and Bitcoin Cash developers working together would create a compelling and competitive DEFI space.
Why Bitcoin Cash is so great for DEFI.
Bitcoin Cash has incredibly low transaction fees (less than 1 cent), and so allows for microtransactions. Which solves the problem of transaction fees harming people with low income.
Social media projects that pay contributors in Bitcoin Cash, like read.cash and noise.cash, I've observed has a lot of users from developing nations. (Thank you Marc De Mesel, for providing the majority of the funding!). Imagine those social media platforms paying in Bitcoin or Ethereum! Earnings would be eaten up by the transaction fees because Bitcoin and Ethereum do not allow for microtransactions.
Even crypto developer and enthusiast Joel De Valenzuela has complained about being priced out of using the Ethereum network...
Bitcoin Cash has an impressive ecosystem, which I believe is generally underrated by the crypto community.
Some examples:
A fiat on and off-ramp https://buy.bitcoin.com/
An exchange https://exchange.bitcoin.com
A peer to peer exchange https://local.bitcoin.com/
A way to freeze the dollar value of Bitcoin Cash https://anyhedge.com/
A decentralized crowdfunding platform https://flipstarter.cash/
A coming card for Bitcoin Cash that works like a Debit Card https://be.cash/
Various other ways of spending and using Bitcoin Cash can be found at https://tools.bitcoin.com/
Wanchain, the Alternative To Ethereum.
Firstly, I want to say that Ethereum has a massive userbase, so I'm not saying that Wanchain is an 'Ethereum Killer'. However, it solves the central problem that this post is addressing, namely... Making DEFI accessible to all.
On the Wanchain blockchain transaction fees are less than 1 cent, like Bitcoin Cash. This means that developing nations and poor people in developed nations can use their DEFI ecosystem.
Under most people's radar the Wanchain community is building an impressive DEFI ecosystem. It has a Decentralized exchange that looks and works like Uniswap called Wanswap. It also has its own browser-based wallet that looks and works like Metamask called Wanmask. It also has a lending platform and yield farming platform.
I've used the ecosystem, and it is easy to use, has low transaction fees, and is fast. Anyone who has used Uniswap and Metamask will immediately feel comfortable using the ecosystem.
Wanswap, a DEFI platform on Wanchain https://wanswap.finance/#/swap
Wanmask, the Wanchain version of Metamask https://wanmask.io/
The Lending And Borrowing Platform on Wanswap https://wanlend.finance/
What if Wanswap Had A Bitcoin Cash Cross-Blockchain Bridge?
The Wanswap community already has developed a bridge for Bitcoin and Ethereum, so why not for Bitcoin Cash?
I'm writing this post to propose that Bitcoin Cash developers and Wanswap developers work together. To create a cross-chain bridge, because I believe it would hugely benefit each ecosystem.
The benefits of Bitcoin Cash for Wanswap.
Bitcoin Cash would benefit Wanswap, because Bitcoin Cash would be the cheapest crypto or fiat on-ramp to Wanswap. Bitcoin Cash would allow people to go from the Bitcoin Cash blockchain to the Wanchain blockchain for less than 1 cent, and vice versa.
Bitcoin Cash would also provide a fiat and off-ramp for Wanchain. Through Bitcoin.com or whatever exchange allows people to buy Bitcoin Cash with fiat currency.
The Bitcoin Cash userbase would have a bridge to the Wanswap ecosystem.
The Benefits Of Wanswap For Bitcoin Cash.
Bitcoin Cash users will be able to use their Bitcoin Cash on the Wanswap DEFI platform. It would give them the ability to earn yields, and use Bitcoin Cash to borrow money on the platform.
Bitcoin Cash would likely be the no.1 used cross-chain due to the low transaction fees.
Conclusion.
Clearly, both the Bitcoin Cash and Wanswap community are passionate about bringing DEFI to everyone.
I believe that a bridge between the 2 ecosystems will benefit 1 another, and the world. The userbase of both will be able to have access to both DEFI ecosystems, due to the low-cost transactions and speed.
So, Bitcoin Cash community and Wanswap community, what do you say?
(Perhaps Bitcoin Cash and Wanswap developers are already working on this idea, and if they are... Then I just hope that this post at least has helped alert people to the low-income person-friendly DEFI ecosystem being built on Wanswap.
For transparency, I have invested in Wanchain $WAN and Wanswap $WASP.)
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"I was also aware that in some developing nations $100 is more than the average person makes in a month. "
Actually in 2020 I saw someone posting on Uptrennd that they were making a $5 withdrawal last for the whole week, during the height of the pandemic. I have a feeling that your gas fees would have basically solved most of their problems for many months.