RaylsLabs @RaylsLabs is an innovative laboratory focused on the integration of financial technology, dedicated to building a bridge connecting traditional finance (TradFi) and decentralized finance (DeFi). The path to achieving the integration of traditional finance and DeFi can be analyzed and elaborated from the following key dimensions:

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1. Technical Architecture: Building Cross-Chain and Multi-Chain Interoperability Infrastructure

RaylsLabs achieves the programmability and liquidity of traditional financial assets in the DeFi ecosystem by building a cross-chain bridging protocol and a multi-chain asset intercommunication network.

- Cross-chain bridging technology: Utilizing techniques such as zero-knowledge proofs (ZK-Rollups) and multi-party computation (MPC) to achieve secure transfers of assets between public chains like Ethereum, Polkadot, Cosmos, and centralized finance systems.
- Stable asset mapping mechanism: Mapping fiat currencies (such as USD, EUR) from traditional finance to on-chain assets (such as USDT, USDC, DAI) through compliant anchoring methods, and further supporting their lending, trading, and staking in Decentralized Finance protocols.
- Automated Settlement of Smart Contracts: The settlement logic of traditional financial products is automatically executed through smart contracts, enhancing efficiency and transparency while reducing human intervention and operational risks.

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II. Compliance Framework: Establish a compliant DeFi system that meets regulatory requirements.

RaylsLabs places great importance on compliance while promoting the integration of TradFi and Decentralized Finance, and is committed to creating a regulated DeFi ecosystem.

- KYC/AML On-chain Integration: Achieve user identity verification and transaction compliance review through Decentralized Identity (DID) and zero-knowledge proof technology, meeting the requirements of regulatory authorities in various countries for Anti-Money Laundering (AML) and Know Your Customer (KYC).
- Security Token Offering (STO) support: Provides compliant tokenization services for traditional financial assets (such as stocks, bonds, real estate), allowing for compliant trading and financing on DeFi platforms.
- Collaborate with Regulatory Technology (RegTech): Partner with global RegTech companies to monitor on-chain transaction behaviors in real-time, ensuring platform operations comply with local financial regulations.

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3. Product Innovation: Developing financial products that integrate the characteristics of TradFi and DeFi.

RaylsLabs breaks down the barriers between TradFi and Decentralized Finance through product innovation, providing more inclusive and efficient financial services.

- Hybrid lending platform: Combining the credit assessment system of traditional banks with the collateral mechanism of Decentralized Finance, it provides low-interest, high-liquidity lending services suitable for both institutional and individual users.
- Decentralized insurance products: Utilizing the transparent mechanisms of Decentralized Finance and the risk control models of TradFi to construct verifiable and auditable decentralized insurance protocols.
- Synthetic Asset Issuance Platform: Allows users to generate synthetic assets linked to traditional financial assets (such as gold, stock indices, and foreign exchange) by collateralizing crypto assets, achieving diversified asset allocation.

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4. Ecological Co-construction: Promoting the Collaborative Development of Traditional Financial Institutions and the Blockchain Community

RaylsLabs aims to build an open and collaborative fintech ecosystem that promotes deep cooperation between TradFi institutions and blockchain developers and project parties.

- Open API and SDK access: Provide standardized APIs and SDKs for banks, brokerages, and payment institutions to facilitate their rapid integration into the Decentralized Finance ecosystem, enabling business innovation.
- Developer Incentive Program: Establish a developer fund to encourage global developers to build application scenarios that integrate TradFi and Decentralized Finance, such as asset custody, compliance clearing, and smart investment advisory.
- Joint Research and Experimentation Projects: Collaborate with traditional financial institutions to establish laboratories to explore the practical applications of blockchain in clearing and settlement, asset securitization, cross-border payments, and other fields.

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5. User Empowerment: Build an Inclusive Financial Platform for the Public

RaylsLabs' ultimate goal is to achieve inclusiveness, transparency, and autonomy in financial services, allowing more people around the world to enjoy the benefits brought by integrated finance.

- User-friendly interface design: Lower the barrier to using Decentralized Finance, providing an interactive experience similar to traditional financial apps, allowing ordinary users to easily use DeFi features.
- Education and Community Co-construction: Implement financial literacy programs through online courses, simulated trading, and community interactions to help users understand the value and risks of integrated finance.
- Multilingual and localization support: Provide localized services and compliance adaptations to meet the needs of users in different regions, promoting global user participation.

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Summary

RaylsLabs's core path to integrating TradFi and Decentralized Finance lies in: technology-driven, compliance first, product innovation, ecosystem co-construction, and user empowerment. By building cross-chain infrastructure, promoting compliant DeFi, developing hybrid financial products, constructing an open ecosystem, and lowering user thresholds, RaylsLabs is leading a profound transformation of the financial system.

This integration not only enhances the efficiency and transparency of financial services but also provides more inclusive and sustainable solutions for the future of the global financial system.