What is Fragmynt?

Learn about the Fragmynt community's mission.

Fragmynt Overview

Fragmynt is bringing the power of decentralized finance (DeFi) to the average person. To do this we have built a community-owned & governed financial infrastructure, the Fragmynt Exchange Network (FEN), that makes it easy for builders and users to get all the benefits that DeFi has to offer.

For users it means you can transfer and save money, access and extend credit, trade on a global exchange, and much, much more. All this is instant, available 24/7, 365 days of the year, and through an interface easier to use than modern banking apps. Most importantly, as a user you will be a part owner of FEN, along with billions of people worldwide.

For builders it means simpliyfing the process of creating new financial products, getting close development support from your ecosystem, and participating in a community dedicated to financial inclusion.

If this sounds interesting to you, then read on to understand exactly what our community is building and how you can claim your piece.

What's wrong with the current financial system?

Traditional, centralized finance is owned and controlled by a handful of participants. It benefits the few at the expense of the many, resulting in it being:

- Inequitable: Seedy practices such as dark pools, payment for order flow, predatory market making, exorbitant fees etc. creates an ecosystem that benefits the largest banks, hedge funds and institutional traders at the expense of the smaller investor.

- Inefficient: Trillions of dollars are locked up by a cornucopia of needless intermediaries: banks, stock brokers, markets makers, share transfer agents, depositories - hoarding capital and charging fees - all money that could be used elsewhere to create value or reduce costs for the end user.

- Inaccessible: Globally, almost 2 billion people (the majority in developing nations) remain unbanked — without an account at a financial institution or through a mobile money provider. This is despite the presence of high mobile usage and internet connectivity worldwide.

- Less Innovative: Endless red tape and regulatory clashes at borders stifle innovation and prevents the creation of products that benefit new generations of participants.

How do we fix it?

Decentralized finance (DeFi) holds the promise of solving all these issues.

What is Decentralized Finance (DeFi)?
Decentralized finance gets rid of financial institutions and replaces them with a network of independent computers around the world running software that fulfills the same functions. Most of finance is already digital, DeFi just goes one step further.

Anybody can run this software and every computer in the network, whether a user or someone helping to run it, is linked by a [token](https://www.coinbase.com/learn/crypto-basics/what-is-a-token) that they hold, which makes them a passive part owner, and (hopefully active) controller of the infrastructure.

With no single central point of control, it becomes impossible for anyone to manipulate the network for their benefit. With no intermediaries it reduces costs and increases efficiency. By being internet accessible it means that everyone can use it.

However, there are a number of problems standing in the way of unlocking DeFi's true power, both for the financial engineer and the everyday user.

Why does DeFi currently suck for users?

Users in the current DeFi ecosystem have a very hard time. To show how bad it is, only 1% of Ethereum users have used DeFi, and only 10 million people in the world have ever had an ethereum address. For those that don't know, Ethereum is currently the platform with the most DeFi applications and the biggest community. This is because it's:

- Slow, expensive and disorganized: Different products are spread across different platforms, with different levels of quality. Many DeFi protocols are deeply complex. Adding in the varying transaction speeds and ever increasing transaction costs, this all leads to a prohibitively high technical and monetary barrier-to-entry.

- Unusable interfaces: Though many protocols are carefully written & provide tremendous value, the average interface is far worse than what most traditional finance websites offer, which is really saying something.

- Limited assets: The average user really wants to invest (actually, every 4 out of 10 people want to invest their money) but the current asset landscape is restricted to historically listed assets such as companies and commodities. Expanding this to include more asset types (such as sports teams, online communities, people and concepts) is a necessary next step for maximal inclusion.

- Unstable instruments: Every pump-n-dump scheme, every platform collapse & hack erodes trusts & makes it harder for users to enjoy what DeFi has to offer.

Why is DeFi currently hard for builders?

Even though existing players, in the best spirit, attempt to promote innovation to build better capital markets: the fact of the matter is — building capital markets is hard.

- Liquidity is unpredictable: The current market infrastructure means that new markets are illiquid, where rug pulls, bank runs & whale dumps are a common occurrence. Furthermore, gathering and organizing market participants requires huge effort.

- Security is arduous: Maintaining market security from extreme actors, performing KYC clearances, and doing asset management are all full-time tasks.

- Initialization is expensive: The current market infrastructure requires significant amounts of capital to be injected, high audit fees & organizational overhead, all just to get started.

- Credit is expensive: Getting started is the hardest part; with no available credit on decentralized networks, it just gets so much harder.

How does Fragmynt help?

If you're a user:

Very simply, Fragmynt has built a number of tools and interfaces that make it very easy and safe for builders and users to participate in decentralized finance. The first of these is the Fragmynt Exchange Network (FEN), an independent, community-owned financial system controlled through the use of a token called MYNT. On top of this:

- We have created a number of carefully-built and audited core products (shown below) that form the basis of the financial system.

- We have tied all of these to MYNT so that you can own and earn from all of them at once, just by holding it.

- We have brought them together onto one website where you can access them with a really simple interface.

- You will be able to add and withdraw money using your traditional payment method

Who owns the Fragmynt Exchange Network?
Even though the Fragmynt Exchange Network has been built by Fragmynt, Fragmynt does not own it or control it. The ownership of FEN has been split up into a billion pieces called MYNT tokens. These are being distributed to the community and users over time so that FEN is majority-owned by them. FEN is also controlled by users. Anybody that holds a MYNT token can create and vote on proposals for the ecosystem and there needs to be a majority consensus for things to be approved. This is also true for the products and interface that we have built. Everything is community-owned and community governed.

Importantly, this is not based on promises, but on math and programs. FEN runs independently of Fragmynt on a network of computers around the world, just like the internet. Now that FEN has launched, not Fragmynt or anyone else in the world can change it without approval from the MYNT community.

If you're a builder:

If you are a builder, this is what you should know:

- FEN is an application-specific blockchain solely for running DeFi. This means speed, scalability and reliability.

- The network is essentially feeless meaning you can focus on building good products, not offsetting gas costs.

- It bundles 2 core protocols, Fragmynt Market and Fragmynt Identity, that form the basis of any capital market. Fragmynt Market solves issues with liquidity through a novel virtual liquidity AMM. Fragmynt Identity provides the basis for a cohesive on-chain identity based on a bespoke implementation of the idea of Soul-Bound tokens

- Emmbeded core products for this ecosystem are subsidized, along with feeless oracles so that you can play with well-audited, secure and stable building blocks as you create newer products

- It's EVM-compatible, which really shouldn't be something to brag about, but apparently there are people not doing that so 🤷‍♂️

Where can I learn more?

Great question. Two places.

- Join our discord by clicking here. This is where the real project discussion happens. If you haven't used discord before don't worry, it's a bit complicated looking at first, but it's basically just a chat room and we are very friendly.

- Read the other blogs here. We go into how the core pieces of Fragmynt were designed for a non-technical audience.