- CeFi/DeFi Distribution Logic
- POC for product onboarding (service provider side)
- Establishing partnerships
Connecting DeFi to Traditional Finance
Verso is built for the regulated financial service industry and community-governed by its participants, which comprises financial service providers and regulated financial institutions. It uses proprietary smart contracts to facilitate the distribution and product-specific money flow between service providers, financial institutions and their customers.
Verso helps financial companies launch microfinance products and reach people without intermediaries
Extend a range of services to new clients, both banked and unbanked
Access to a greater choice of tailored financial products via e-wallets and bank accounts
In this paper we introduce Verso, a decentralised marketplace for financial products. Verso solves an industry-wide distribution challenge that has been preventing innovative microfinance and decentralised financial products from reaching retail customers across markets.
Verso is a decentralised marketplace for the regulated financial service industry. It bridges the gap between DeFi and traditional finance by standardising how financial products connect to consumers – via existing relationships through digital wallets and bank accounts. In addition to DeFi, Verso also enables traditional financial service providers to distribute microfinance products at scale.
VSO is the Verso utility token required to access network services and participate in community governance. VSO is used by the ecosystem’s participants: (1) financial service providers, (2) product validators, (3), participating financial institutions such as digital wallets and banks, and (4) governance parties. The Verso token is issued on the Avalanche C-Chain.
Verso is a marketplace and distribution network for the regulated financial service industry. It’s participants are (1) financial service providers such as insurance companies, lenders, (2) product validators confirming legitimacy and compliance categories of the product (3), participating financial institutions such as digital wallets and banks. All of these participants can also participate in the continuous development of the ecosystem through community governance.
The adoption of traditional microfinance (CeFi) and decentralised finance (DeFi) has been slow, despite many meaningful use cases for millions of people. In CeFi, customer acquisition cost and overhead often leads to prohibitive unit economics to market these products at scale. While some of these issues may be addressed by DeFi, its nascent technology is still a major entry barrier given the degree of knowledge required to access these products. Verso solves these challenges by enabling existing digital wallets and banks to expand their product offerings and making it more accessible to their existing consumers.
Verso is built on Avalanche.
Defi is short for decentralised finance, which generally refers to digital assets and financial smart contracts, protocols, and decentralised applications (DApps). It’s financial software built on the blockchain that can be pieced together like legos. It removes the need for financial intermediaries.
Avalanche is a new and revolutionary blockchain technology created by one of blockchains earliest experts, Emin Gün Sirer. The Avalanche network consists of multiple blockchains, and uses a novel proof of stake (see below) consensus mechanism to achieve high throughput and is estimated to reach over 4500 transactions per second. The technology allows developers to deploy blockchains that fit certain needs and that can interoperate with other blockchains to create a comprehensive ecosystem.
Staking or the Proof of Stake (PoS) concept states that a person can mine or validate block transactions according to how many coins he or she holds. Verso applies this concept for community governance where the amount of staked VSO determines the party’s voting power. In addition, product validators are also required to stake VSO tokens in order to earn rewards from validating products. Their stake serves as a collateral and is reduced for incorrect validations.
The community governance model will allow the community to decide the future of the network. VSO token holders may stake their VSO to vote on or propose new ideas to improve the Verso network. Governance voting is performed by issuing a Verso Implementation Proposal, or VIP. Once the VIP is ready for voting, the interested parties vote by staking their tokens in favour or against the proposal. The more VSO tokens a single entity stakes, the more voting power they possess.