With decentralized finance (DeFi) being one of the hottest topics in the crypto space throughout 2019, VeChain looks set to join the list of blockchain projects plying their trade in the fastest growing niche of the crypto industry.
According to CEO, Sunny Lu, the upcoming VeChain 2.0 whitepaper will reveal details about how the VeChain Thor blockchain will accommodate such open financial applications.
The project has until now primarily focused on the supply chain, food safety, and similar industries. But Sunny said in a project update interview that the time is now right for VeChain to house “financial applications that you can use in collateral, assets, for cross-chain protocols.”
The VET token will be used in a different way, more representing the valuation of assets for open finance applications. In the upcoming whitepaper 2.0, we have a dedicated section to elaborate on open finance applications.
Reporting on why VeChain has not paid attention to DeFi until now, Sunny argued that the time was not so right, then.
“We believe that only when you have more business activities on a blockchain, then you will have a demand to use financial applications,” he said.
Sunny noted that although it would take some work to build infrastructure and sort out regulation, the fact that the VeChain Thor blockchain has more business activities makes the DeFi concept promising.
“In 2018, for the six months, we had roughly half-million transactions total. In 2019, roughly more than 35 million transactions, and 80% of them coming from smart contract transactions. I think it’s the right time,” he concluded on the subject.
The CEO also spoke on the subject of why VeChain-based Thor token (VTHO) is not available on most major exchanges, citing low transactions as a possible reason why the token isn’t widely listed yet.
He suggested that as soon as more business applications are on VeChain Thor, then there will be more demand for VTHO, perhaps luring more “exchanges to look at the significance of the trading volume, and consider listing it.”