Arcana Network onboards Dygnify, a Defi protocol
by
Ajay Shetty
Announcements
|
Mar 6, 2023
In our endeavours to improve our partner network and help upcoming projects, Arcana Network has partnered with an exciting project, Dygnify. Dygnify is a Defi protocol that democratises credit for small businesses in emerging markets. A rare use case of Defi is solving a real-world issue. Their vision is to help small business ecosystems grow by unlocking access to debt capital markets and, on the other hand, provide digital asset investors with an opportunity to access credit opportunities linked to actual economic activity, earning stable APYs.
Dygnify will do this by providing a decentralised architecture, including a liquidity pool managed by smart contracts, decentralised risk management, decentralised identities known as soul-bound tokens and a reputation management module for their users. In addition, Dygnify will leverage Arcana Auth to onboard the next set of users by eliminating the traditional web3 onboarding issues.
Currently borrowing process for the Small business ecosystem is riddled with inefficiencies like little liquidity available to borrow, operationally intensive process, opaqueness in decisions, and multiple to and fro between several entities resulting in high costs. Recent reports suggest that the addressable credit gap for small businesses in emerging markets is estimated to be more than $5 Tn, a massive hole with a more significant potential to have a multiplier effect on the economy. Currently, SMBs in emerging markets contribute more than 40% to the jobs, ~20%+ to GDP and more than 40% to the total exports despite this struggle to get liquidity.
Dygnify is solving these problems by building credit infrastructure on blockchain to enable crypto investors to lend to the SMB lending ecosystem. Their vision is to develop a thriving global credit market on the chain, through which anyone can obtain competitive yet stable yields on their investments offered by private credit opportunities in emerging markets, currently available only to the privileged few.
Partnership Commitments
Arcana Network’s Authentication SDK and Arcana Access will help Dygnify onboard users through social signups and passwordless auth for non-custodial wallets, supporting other web3 wallets for authentication and onboarding.
As a part of our partnership commitment, we will also be providing Dygnify with resources in areas such as product, growth, community and marketing to help them go live on our mainnet towards the end of this year.
Quote from Dygnify
At Dygnify, we’re building rails to connect digital asset liquidity to the small business ecosystem while providing digital asset investors access to stable and attractive private credit opportunities.
To onboard the subsequent billion users to Web 3.0 rails and build use cases that directly benefit them, the user onboarding experience has to be super simple. Hence we’re excited to join forces with Arcana with a shared vision to simplify the user onboarding experience for the users.
Surabhi C, Co-founder of Dygnify
About Arcana Network
Built for Ethereum and EVM-based chains, Arcana is the web3 infrastructure to easily onboard dApp users and enable user data privacy and ownership. Web3 developers use Arcana’s SDKs for a seamless, familiar user onboarding experience via social authentication and passwordless login. All user data is encrypted, secured with data access fully controlled by the users, and powered by blockchain.
Arcana has raised 2.7Mn USD from some of the leading investors and founders in the ecosystem such as Balaji Srinivasan, Founders of Polygon, Woodstock, Republic Crypto, and Digital Currency Group.
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