LYO Credit (LYO) speculators and developers bet that the BNB Chain is the future of decentralized finance (DeFi). LYO Credit is the utility token of the LYOPAY Ecosystem’s applications.
They built the LYO Credit on the BNB Smart Chain (BSC) blockchain. To explain, the BNB Chain is the blockchain built by Binance (BNB). Binance powers the BNB Chain protocol which runs on which they base LYO. This allows LYO to use the BEP-20 smart contract standard.
BEP-20 extends the ERC-20 (Ethereum Request for Contact) to the BNB Smart Chain. The similarity between ERC-20 and the BNB Beacon Chain makes BEP-20 tokens compatible with both Ethereum and BNB Smart Chain applications.
How BNB Chain powers LYO Credit (LYO)
This extends LYO to a global market because ERC-20 is the world’s popular token standard. Essentially, BEP-20 serves as a blueprint for tokens. Importantly, BEP-20 allows designers to set rules for token usage. For example, who can spend tokens, how tokens are spent, and what transactions are allowable.
They designed BEP-20 as a technical specification for the BNB Smart Chain. This provides a flexible standard that allows developers to launch a range of tokens. For example, a BEP-20 token can represent shares in a business, or money in a bank account.
Consequently, a BEP-20 a smart contract can make payment in fiat currency from a bank account or sell stock. A smart contract is a digital robot they build into a token. Smart contracts perform a specific task. For example, the BEP-20 Smart Contract in the Binance USD (BUSD) stablecoin makes payment in US dollars.
Why LYO Credit uses the BEP-20 Smart Contract
LYO’s builders use BEP-20 because it is simple and easy-to-understand. This reduces the complexity of transactions, which means there is less that can go grow. BEP-20 is easy to use because it has uniform tech and protocol standards. They claim this makes BEP-20 more reliable.
LYO’s BEP-20 contracts allow BNB Smart Chain applications to facilitate LYO transactions and record LYO balances. This allows BNB users to trade, process transactions, and stake for rewards on LYO. It allows users to complete tasks such as Know-Your-Customer (KYC) verification.
They claim speculators can get rewards of up to 36% by staking LYO on LYOTRADE.
LYO Credit (LYO) and LYOCREDIT
LYO Credit (LYO) is the utility token for the LYOPAY ecosystem. LYOPAY is a payments platform that supports payment in cryptocurrencies and fiat currencies.
Importantly, they built LYOPAY to comply with KYC, AML, OWASP, and European General Data Protection Regulation (EGDPR) and standards. KYC is Know Your Customer. Many governments require all financial institutions and payments platforms to use KYC to verify all users’ identities.
They design Anti-Money-Laundering (AML) restrictions to prevent the conversion of crime proceeds into “clean” or legal money. The goal of AML is to keep criminals from using the financial system to clean or launder dirty money. Authorities strictly enforce AML laws in many countries, including the United States and the UK. Law enforcement can seize funds and freeze accounts that do not comply with AML laws.
The Open Worldwide Application Security Project (OWASP) is a non-profit organization that develops open-source security applications and standards for industry. For example, OWASP builds component analysis platforms for supply chains, and writes rules for firewalls.
They Built LYOPAY for the Euro and the EU
They call the General Data Protection Regulation (GDPR) “the toughest privacy and security law in the world.” All digital transactions in the European Union (EU) have to comply with the GDPR. The EU is the world’s third largest economy with a Gross Domestic Product (GDP) of $16.6 trillion (€15.49 trillion) in 2022.
Notable EU members include Germany, France, Italy, Spain, and the Netherlands. Hence, you need to comply with the GDPR to conduct business in Europe.
Importantly, LYOPAY can send and receive SEPA transfers. The Single Euro Payments Area (SEPA) system allows users to send cashless euro payments anywhere in the EU via credit transfer or direct debit. You can make SEPA payments to several non-EU countries.
LYO Credit (LYO) and LYOPAY support Euro transactions
Both the European Central Bank (Eurosystem) and the European Commission (the EU government) sponsor SEPA. Hence, SEPA is the official payments platform for the EU and the euro. LYOPAY wisely integrates with SEPA to support payments in Europe. LYOPAY allows SEPA transfers by providing users with an International Bank Account Number.
Supporting SEPA transfers could allow LYOPAY users to deposit money in banks and to convert crypto to Euros for cash withdrawals from ATMs.
Using SEPA and complying with GDPR allows LYOPAY to convert cryptocurrencies to Euro and convert Euro to cryptocurrencies. This is a wise move because Euro payments comprised 36.95% of SWIFT (international banking) transactions in June 2023, Statista estimates.
DIGILYO APP LTD – a UK Service Company built LYOPAY and LYO Credit. Thus, LYOPAY and LYO Credit also complies with British laws.
Are Applications like LYOPAY the future of DeFi?
I think LYO Credit (LYO) could offer value because its builders pursue the smart strategy of integrating with the existing financial system.
Instead of trying to replicate the financial system, LYO works with the existing system. I consider this strategy smart because it avoids conflicts with authorities and financial institutions. More importantly, LYO works with institutions and instruments ordinary people use in the real world.
For example, a German cannot walk into Aldi and buy groceries with Bitcoin (BTC). However, a German can walk into Aldi and buy groceries with euros. Theoretically, Aldi, one of Germany’s largest grocers, could accept Euro payments through LYOPAY and SEPA. Aldi could accept LYDOPAY because it complies with regulations. For example, LYDOPAY can cooperate with tax authorities.
I think solutions like LYOPAY are the future of blockchain and DeFi. To explain, blockchain and DeFi can only expand if they operate on the systems most people and businesses use. For example, SEPA.
What Value does LYO Credit (LYO) offer?
There is a strong interest in LYO Credit (LYO). For example, LYO Credit was CoinMarketCap’s second most trending cryptocurrency on 6 September 2023.
Conversely, LYO was CoinMarketCap’s 2,230th largest cryptocurrency on 7 September 2023. CoinMarketCap gave LYO Credit a 52.42₵ Coin Price, a $77.2 million Market Capitalization, a $131.105 million Fully Diluted Market Cap, and a $1.31 million 24-Hour Market Volume on 7 September 2023.
They base those numbers on a Total Supply of 190.86 million LYO, a Maximum Supply of 250 million LYO, and a 147.33 million LYO.
Thus, Mr. Market is skeptical of LYO. I think this skepticism is valid because there is no evidence ordinary people using are LYOPAY for payments. Hence, my advice for speculators is to avoid LYO Credit (LYO) until they can prove ordinary people are paying for stuff with LYOPAY.