In 2019, one of the most exciting themes in the blockchain industry was the emergence of decentralized finance (DeFi), with substantial practices directed to it to explore the future when people can control the asset, the data and their own finance by themselves. Services such as payment, insurance, remittance, derivatives and loans, will no longer be centralized to handle and guarantee by financial institutions. Instead, the role of these unnecessary intermediaries will be assumed by transparent protocols. Facing the pain points and challenges of loans hidden in the market worth hundreds of billions, decentralized finance (DeFi) will bring a new solution, yet not a perfect one. Decentralized finance (DeFi) is an open system free from the control of any individual central institution, in order to cut the intermediary cost of the traditional finance through the blockchain technology. Monzo will forge a decentralized digital ecology for financial lending and start a new trend of blockchain loans.

Introduction to Monzo-MZ

MZ digitalized financial lending platform, launched by Britain-based Monzo (Mobile banking), is a type of integrated financial protocol on digital assets based on the blockchain system. The business system is comprised of the decentralized ETH-based stablecoin system protocol and tokenization protocol regarding the loan transaction system protocol. MZ contributes to providing a safe, inclusive, creative and transparent decentralized integrated financial service on digital asset for global users.

MZ as a decentralized lending ecosystem makes open crypto asset backed loan possible anytime and anywhere. By virtue of its industry-leading ability of loan management and four distinctive cooperation relationship networks, Britain-based Monzo constitutes the world-class lending ecosystem. In order to increase the acceptability and to promote the usage, it will first serve as an underwriter between the financial institutions (i.e. banks, fund, etc.) and the private investors (i.e. high-net worth individuals and MZ community).

The characteristics of MZ COFi

Based on DeFi, MZ Team put forward an upgraded idea - COFi, Encrypt open finance. It is believed that the decentralization is only a part of COFi application which is based on the idea of DeFi, but is not confined to it.

1. Inclusiveness

Just having a cellphone or a computer with internet access, users can have access to COFi protocol all over the world and enjoy various financial services, such as decentralized trading, lending or other financial services through encrypted digital wallet.

2. Controllability

One of the advantages of MZ COFi is that users take absolute control over their own assets all along. They can act as buyer or seller, service provider or service receiver without limit in the financial transactions.

3. Transparency

The code of MZ COFi is always open source one, which allows everyone to verify its security, interaction rules and actual usage of the network.

4. Anti-tracking ability

In the system of MZ COFi, all transactions are treated equally, which also protects the privacy of traders.

5. Programmability

MZ COFi is realized by smart contracts; hence, it can edit and adjust the latter according to different needs of functions, thus realizing different financial logic.

6. Combinability

Various new applications can be created through the combination of different

7. Interoperability

MZ COFi enables the digital assets to interact with the value of legal tender and physical assets.

8. Diversification

MZ COFi can spread the risk. For example, influenced by the COVID-19 pandemic and other factors, the global asset market is facing crisis; therefore, we can combine the traditional investment and the digital currency to spread the risk of investment.

The advantages of Monzo

MZ, focusing on reshaping the lending relationship and building a new trust mechanism of lending, has the following advantages:

1. A complete lending system: MZ Ecosystem, the first one all over the world, is researched and developed by the London-based creative bank MONZO with the joint efforts of the top technical groups of blockchains, aiming to realize “on-chain management” and to upgrade to the blockchain economy by digitalizing and tokenizing the traditional lending market with the help of the blockchain technology.

2. Abundant funds: Monzo, a Britain bank under the overall supervision, uses Monzo Business bank accounts to achieve an enhanced visibility and better control of all funds. It now manages an asset of USD 7.3 billion, with 253 employees in 10 countries like Britain, China, India, Japan, Russia, Singapore, Turkey and the United State and so on. Monzo also owns a mature research and management team, which has swept many awards, such as the World’s Best Investment Bank selected in Britain in the Emerging Markets for several times.

3. The top market value management team: MZ Team now has set up branch offices in five countries across the world, with its services covering hundreds of millions of professional customers globally. Through the in-depth analysis of management regulation, it can apply the new technologies into the current financial institution system safely and efficiently.

5. Strong ecological partner: MZ has raised strategic funds of over USD 10 million from dozens of investment institutions all over the world, including financial, technological and other leading brands in the area of ecosystem. The global influence of these investment institutions can help MZ promote its business.

As a decentralized lending ecosystem, MZ can develop the crypto asset backed loan anytime and anywhere. It is believed that, by virtue of its industry-leading ability of loan management and its comprehensive layout of cooperation network, Monzo can build up a smart and safe stablecoin system and sweep into the world-class lending ecosystem. It will make the widespread communication and sharing between people and people, objects and people as well as people and objects achieved, to promote broader development of DeFi ecosystem, and to give a new impetus to the sustainable development of new financial lending industry, in a pursuit of satisfying users’ various needs of encrypted digital finance.