Why and what are we building at 2pi?

The more you experience the world, the more you realize the global inefficiencies of the global financial markets, and how governments run their monetary and fiscal policies ended up impacting the regular Joe or the regular Juan.

Nowadays, the experiments of the recent 2020 and 2008 monetary and fiscal policies, are and will impact even further every single person. And this will happen across the globe.

In developed economies prices have been skyrocketing on items from used car prices with more than 21%, to home prices moving up to 23% according to (https://www.cnbc.com/2021/07/21/used-car-prices-have-surged-how-to-make-that-work-to-your-advantage.html, July 2021), (https://twitter.com/zerohedge/status/1418211423352606728?s=20)

Commodities prices are rising globally with “Lumber, iron ore and copper have hit records. Corn, soybeans and wheat have jumped to their highest levels in eight years. Oil recently reached a two-year high” (Wall Street Journal, June 2021), this will affect everyone, from food prices to any single material built with plastic will be impacted across the board, and this is a global issue.

In third world countries with extremely weak governance mechanism such as Argentina, inflation is running at 60–70% only in 2021, with the currency being devaluated by the day, poverty rates are now more than 40% as described by (https://www.aljazeera.com/news/2021/4/1/more-than-four-in-10-argentines-living-in-poverty-official-data, April 2021), and will continue to increase further as the currency is loses its value by the day.

On the other side, companies are struggling to find yields which gives them protection against this global over-leveraged world. A regular FinTech or startup operating in a Bank in the US is able to get a 0.001% APR on its saving accounts, which compared with inflation rates this takes it to a pretty huge negative interest rate.

Sample from a Bank Savings Account in the US for a regular start-up/FinTech application

This situation on the other side, such as in Argentina FinTechs and Banks itself, are offering Argentina $ Peso rates which are negative by more than 40%, due to the level of inflation the country is facing. Similar situation happens in Venezuela and other third wold economies.

In summary, is not only the individuals who are being widely impacted by this global over-leveraged experiment, but companies as well. In the end every single individual, regardless if they come from a developed or a 3rd world economy will be impacted. We are facing probably the biggest monetary and fiscal experiment in our lifetime, and the vast majority will simply suffer in one or another way from this.

DeFi is massively more capital efficient, and the properties of being open source systems allows it to have a hyper-speed levels of innovation, potentially not seeing before in history.

A regular DeFi user via a “savings account” can obtain rates on USD in the double digits % APRs, as well as access to credit in USD in a single click with annual rates below 5% . However, DeFi world is way too complex to access for the regular Joe/Juan, and even more troublesome for the any FinTech company due to the lack of compliance.

In the last investor presentation from Circle, they made a brief and interesting description on where the financial infrastructure is heading:

Circle Investor Presentation, June 2021

At 2pi we share the same belief. Infrastructure is being built from the ground up as we speak, and thats exactly what we have started building. In order to have this infrastructure it is crucial to have a deeper understanding of both worlds.

At 2pi we aim to become the decentralized infrastructure built from developers to developers, so they can interact and built upon it. All in a decentralized manner.

An infrastructure world run by decentralized APIs which connect both worlds, the legacy and crypto world and as we mentioned in one of our tweets: “we believe the legacy and crypto worlds, will eventually blend together as one”.

Below is a glimpse preview on what we are building:

However, one of the biggest challenges is to build this in a fully decentralized manner.

We understood that the first step is to build a protocol that will be expanded into a DAO in the future, having a governance utility token mechanism which allows to optimize token holders, via voting participation an active co-operation in the development i.e. via grant proposals, etc.. This will a create long term participation.

We are here to build the infrastructure of the next 50 years, and we need wider community participation and involvement to make this happen moving forward.

To our small but growing community, keep up with us, we are setting the pieces together, to create decentralize models, which in the end should impact in a positive way the regular Joe, regardless if it is a Joe from the US or a Juan from Argentina or anywhere else.

Why? because we have a mission to improve this Joe/Juan life via financial access to lending/credit or any product that improves his/her life moving forward via FinTech or start-up providers.

We are here to make the necessary changes. Evidently, the current financial system is not working properly, and we need to improve this together as a community.

Technology is an enabler, but community will make it happen. Let’s build this together, and start the 2pi revolution!

References:

DeFi SuperPowers for Fintechs