The future of DeFi products is uncertain, but with new innovations and products coming to the space the future is headed toward a certain direction.
The future of DeFi products are going to be middleware that connects protocols to a user facing application. We strongly believe that our product, Outlet is going to take a large role in molding the DeFi landscape and bring these returns to people outside of the realm of cryptocurrency.
It's hard to imagine the killer consumer facing app of DeFi or Ethereum itself. One might argue that the killer app itself is Dai or Compound. However, these products are a bottleneck for traditional people and noncoiners alike. These applications require knowledge and connecting several products together. We have a vision of what the killer Ethereum application will be at this point in time and would like to share.
The killer DeFi application will use other products as building blocks and allow anyone to benefit from the technology being developed on the Ethereum Blockchain.
Traditional finance and banking products have several issues from a consumer point of view. A traditional bank account pays out 0.09% interest on average. That is not even 1/10th of 1%. If the rate of inflation is around 2% each year you are technically losing money while paying these banks fees to store your money. Banks will use your funds to issue loans and make a profit while using your dollars.
We believe the killer DeFi application is going to be Outlet. Outlet is essentially a mobile application that is a bank account built on top of Ethereum. On the backend we are a DeFi application and on the front end we look feel and act like a traditional bank account. We use lending protocols as a tool to achieve a high interest rate for our customers USD.
When you download the Outlet app from the app store you will see that the Ethereum features are almost hidden. The goal of Outlet is to bring DeFi to everyone. In the mobile app you can transfer funds from your bank account to our smart contract. Our app allows anyone to hook up any bank account in the United states and directly turn your dollars into dai. These Dai are then supplied to a lending protocol such as compound.finance.
Stable coins are theoretically equivalent to the United States Dollar, and the DeFi protocols allow stable coins to achieve an incredible interest rate compared to traditional bank accounts.
To sum up the goals and feature set of Outlet at launch we will have a way for you to onboard your traditional bank account to become a DeFi bank account natively within our application. From there you are able to withdraw and transfer funds back to your traditional bank account.