Investing in Relite Finance

3 min readApr 12, 2021

The latest addition to Sky Ventures Portfolio is Relite Finance. We want to discuss the reasons for our investment in Relite Finance.

Relite Finance is a money market protocol that enables users to lend, borrow, and stake all crypto assets in one protocol, powered by Polkadot.

Major Problems with DeFi Protocols

l )Lack of Interoperability

2) High Fees and Overcollateralization

3) Lack of Usability

Why did we decide to invest in Relite Finance?

Real Interoperability

By utilizing Polkadot technology, native Bitcoin and ERC20 assets will exist in one ecosystem.

Fair fees & Lower Collateral

Currently, most of the protocol requires positions to be collateralized by more than 180%. Also, fees are insane to interact with DeFi protocols which is a significant barrier for mass adoption and take things to next level; this has to be changed.

Simpler UX

We are witnessing a significant boom in DeFi space. But it's hard for beginners to use the current DeFi protocols. A Simple, intuitive, and easily accessible is what Relite provides to the user.

Primary Features of Relite Finance

Interoperability

Scalability and interoperability are achieved by leveraging Polkadot parachains and bridges. The initial MVP will be deployed simultaneously on Polkadot and Ethereum.

Reserve Fund

Providing safety during high market volatility. The Reserve Fund ensures a better collateral ratio when needed most, acting as a safety cushion during a shortfall.

Non-Fixed and Fixed-term pools

Choose between stable and fluctuating APY. As loans mature, the implementation of special terms will enable predictability and improved terms for lenders and borrowers.

Token: MVP Protocol Logic

Relite is designed with simplicity and sustainability in mind.

Relite Token:

The Relite ecosystem is vastly concentrated around RELI token usage. The primary utility of Rellite Tokens (RELI) tackles the following:

Governance

Relite token holders will be able to vote on product features, token utility and even decide which chains will be integrated into the protocol.

Rewards/Liquidity Mining

Through liquidity provision and market participation, both lenders and borrowers will be rewarded with RELI on a daily basis.

Staking — Enabling lower collateral and stability.

Staking RELI in the Reserve Fund pool will yield additional rewards in fees whilst strengthening the Relite ecosystem by enabling lower collateral and improved system stability.

Tokenomics

Total Supply: 9,100,000

Public Sale: TBA

Private Sale: 12 month vesting period with gradual release of 1/12 per month

Team: 12 months lock-up period, after that- 12 month vesting with gradual release 1/12 per month

Liquidity Mining — Rewards: No lock

Competitors