Voyage through the DeFi universe: Decentralized payments

If you look at the DeFi ecosystem through a wider lens, you can see that decentralized finance projects are working and developing in roughly twelve directions. Attempting to shift to a decentralized form of almost everything related to the traditional financial system also means trying to move as quickly as possible to new types of interactions with financial instruments and decentralization of these interactions.

One of the most profitable and developing sectors of decentralized finance is payment solutions, which are designed to create an open, global financial ecosystem and enable secure, stable, and fast transactions using smart contracts.

In today’s article, we will talk about applications, solutions, and protocols that allow users to make cross-border payments without intermediary fees and financially interact without having access to traditional banking systems.

DeFi and Instant Payments

With the advent of Lightning Network, it is possible to make instant micropayments faster and with lower fees than in the case of using the Bitcoin mainnet. In addition to cheap and instant transactions, Lightning Network reduces the “weight” of the Bitcoin blockchain and increases privacy.

The main problems that instant payments-focused projects are trying to solve are low bandwidth and high fees. The Ethereum network can currently handle about 20 transactions per second, which is not enough for the ever-growing number of users.

There are numerous ways to solve the scalability problem, such as on-chain and off-chain solutions, consensus mechanism protocols, increasing the block size, and more. The variety of such solutions and a number of approaches to their implementation led to the creation of a large number of projects working on instant, cross-border payments with low fees and the use of smart contracts.

Celer Network

Celer allows developers to quickly create and manage scalable dApps. The internal CELR token, in addition to being used as a platform currency, is used in PoLC, a bid system where users can block tokens to provide liquidity, as well as in LiBA auctions to maintain liquidity mechanisms.

Celer can be integrated into any existing blockchain and is already supported by EVM-based blockchains. The platform provides users with the ability to interact with dApps 10,000 times faster, to make instant payments, trade on exchanges, or use prediction markets.

Matic Network

These sidechains function through a decentralized network of Proof-of-Stake (PoS) validators, who support the system in exchange for rewards.

Plasma is used to secure digital assets as well as ERC-20 and ERC-721 tokens on the mainnet. Sidechains can be used to support decentralized financial protocols available in the Ethereum ecosystem.

Matic developers create an ecosystem consisting of mobile applications, wallets, and extensions for easy and convenient transfer and storage of assets. Matic provides a user interface and payment API for dApps, users, and developers. Atomic swaps and Matic smart contracts will allow users to pay with any token, and the network can be used to exchange tokens with each other by using a liquidity pool.

xDAI Stable Chain

The technology of building cross-bridges is used to implement such a solution, where native xDAI stablecoins are created after blocking DAI tokens in a smart contract. xDAI is used both for payments and fees, with 500 transactions costing about $0.01 to execute.

The xDAI network is fully compatible with Ethereum projects and does not require complex operations by Ethereum dApp developers to merge their projects with the xDAI blockchain. There are ongoing developments to implement the zero-knowledge protocol in xDai for private transactions and reward xDAI validators via the POSDAO consensus mechanism with a separate STAKE token.

Request Network

Request Network can be used for online payments eliminating third parties and high commissions, the need for billing, accounting, and auditing. The project is already working with Civic to enable user identification, as well as Kyber and 0x projects to pay for goods and services in convertible digital tokens.


Users can access the platform by connecting through MetaMask. Whisp supports payments using DAI, ETH, DATA, DGX, and DGD tokens. A similar solution to simplify salary payouts is the Sablier project, which can be used for payments and distribution of funds at a predetermined rate.

Future of payment solutions

Solutions for instant and cheap payments, with a user-friendly interface, will help popularize cryptocurrencies among new users, and decentralized financial instruments will become more focused on creating an open financial ecosystem accessible to every user around the world.

Disclaimer: The contents of this article are not intended to be financial advice and should not be treated as such. 3commas and its authors do not take any responsibility for your profits or losses after you read this article. The article has been presented to provide readers with general information. There is only personal experience described herein. The user must do their own independent research to make informed decisions regarding their crypto investments.

Trading blog. Tools, bots, strategies.