What if there was a marketplace that essentially had the capabilities of connecting DeFi to traditional finance?
What if all of these financial products could be standardised and distributed efficiently so they can achieve mass adoption?
Verso was developed with exactly this in mind. It is built specifically for the regulated financial service industry and is a community governed by its participants.
So now you might be asking, how does all of this work? Well, it uses proprietary smart contracts in order to facilitate the distribution and product-specific money flows between each service provider and financial institution, and their customers.
In fact, Verso is a decentralised marketplace that intends to standardise how financial products are created, distributed, and settled.
It even attempts to solve the fundamental distribution challenges that have been inhibiting the mass adoption of financial products by retail consumers, which should in turn help the whole industry.
The Verso Ecosystem
The Verso ecosystem fills the role as a market layer that connects licensed financial institutions that offer regulated financial products or CeFi, decentralised financial products or DeFi, and consumers that interact with digital wallets or digital banks.
- Financial service providers can create a product and set the distribution criteria.
- Validators confirm product compliance, while staking and earning VSO.
- Wallet providers can fetch products for in-App display as well as settlement.
- And then you have the community governance, where participants stake VSO.
What is the point of all of this? Well, to put it simply, financial institutions want to offer new world products to the pool of customers that is continuously growing.
It’s not all sunshine and rainbows however, they are limited by the kind of licenses they hold, and the jurisdiction they hold in them. As a result they could be restricted in terms of the products they can provide and to whom they can provide the products. Think of this along the lines of having your favorite TV show made unavailable to you due to certain region censorship or restrictions.
If we look at wallet providers, they are in an advantageous position since they essentially have an ongoing relationship with customers, where the regulatory principles that they operate under dictate a continuous KYC relationship. Perfect, right?
The consumer insight that is enjoyed throughout this process puts wallet providers in a perfect position when it comes to offering tailored product offerings, while also ensuring focused marketing with no wasted efforts interacting with non-eligible customers. What’s not to love?
Well if you took all of the benefits above, and add the new capabilities that DeFi brings, you have Verso; a new decentralised platform allowing tailored product offerings to consumers with digital wallets of any kind, in an integrated, compliant, and reasonable way.
Verso essentially gives financial service providers access to previously inaccessible consumers, and allows these consumers to access exciting new product offerings through whatever wallet they are already using.
It uses its own Verso Token (VSO) for granting access to the platform itself, which is used for the marketing, placement, and conversion of all products. The products themselves are based on legal regulatory relationships between the financial service providers and the consumers.
The products are settled in USDC, or whatever currency is most suitable for that particular product, which allows for stability over the period of the product contract.
Validators ensure that only compliant products are made available and that those products are only displayed to appropriate customers. They set up related product smart contracts, to power any required transaction signing. They can also have a role in the generation of new VSO in the future.
Financial service providers get exposure to a new customer base. Wallet Providers increase customer stickiness and loyalty. But most importantly, consumers get access to new exciting microfinance products and services through the apps they are already using day to day. Working as a community, everybody wins.