The majority of today’s decentralized finance (DeFi) projects build tools that are replacements to those found in traditional finance (TradFi) systems. However, a new blockchain project called Abachi believes that DeFi is destined to converge with traditional finance, not replace it.
To facilitate this vision, Abachi is building the technical rails to onboard the multi-trillion dollar TradFi industry into the decentralized finance world. The project’s growing roster of traditional finance partners, like LUCA Plus, will be able to bring Abachi’s blockchain solutions to their real-world clients this spring.
At just two months old, Abachi has already attracted over $2.5M USD in funding from strategic investors and secured product integration agreements with ecosystem players like Chainlink and mStable. It has also amassed a 20,000+ member Discord community and over 7,000 Twitter followers. The project has even pulled multiple members of the community to join its core team, bringing on experience from central banks, academia & Fortune 200 corporations.
The three branches of Abachi
Abachi originates from the words “Abacus” (the ancient calculating tool) and “Chi” (vital energy). The project is currently structured into three entities: Abachi Core, Abachi Treasury, and Abachi Labs.
- Abachi Core provides the middleware infrastructure essential for bringing traditional finance on-chain. It will develop an SDK using existing as well as new technology solutions that can be used by front-end partners
- Abachi Treasury exists to fund Abachi Core, support partner development, and acquire other ecosystem projects that align with Abachi’s missions. The treasury works on a basic strategy of maximizing yield bearing assets.
- Abachi Labs will issue licenses for the Core technology including the SDK that allows partners to integrate.Service fees feed into the Abachi Treasury. Abachi Labs will also facilitate permissioned lending pools which will be used by partners to lend out money to small businesses at highly competitive rates, initially subsidized by Abachi’s native token ABI. This will bring in real-world yield, which is far superior to the zero-sum cross-defi yield strategies in place today.
Leveraging Olympus DAO Technology
Abachi Treasury is composed of a combination of stablecoins and the OHM token. OHM is the decentralized reserve currency powered by the Olympus DAO protocol. This treasury approach demonstrates Abachi’s strong conviction about the mass adoption of OHM as a unit of exchange in the DeFi world. Unlike treasuries that hold Bitcoin or Ether, Abachi Treasury enjoys the rebase rewards offered by OHM and the revenue that it accrues. Like OHM, Abachi’s native ABI token is also a rebasing token, and ABI holders will begin staking when Abachi’s web application launches on Polygon Mainnet in late January.