Polytrade is proud to announce its partnership with Plume Network. Plume is the first modular RWA L2 built to seamlessly bring any real-world asset on-chain. This integration marks a monumental leap forward in asset tokenization and capital onboarding and is poised to push forward the future of RWA trading, empowering projects and investors alike to thrive in the ever-expanding blockchain ecosystem.

As an aggregator and marketplace for RWAs, Polytrade will harness the diverse selection of assets available on Plume. Leveraging Plume’s robust infrastructure, Polytrade will ensure enhanced security, compliance, and streamlined transactions, enriching the overall user experience.

Plume’s multitude of solutions includes a comprehensive, end-to-end integrated technology stack on both the asset and compliance sides.

Plume is driven by a team of seasoned entrepreneurs, investors, and operators with extensive experience in both traditional and blockchain finance with backgrounds from industry giants such as Coinbase, Robinhood, Binance, and more.

Key Features of Plume

Integrated Compliance

Plume offers an end-to-end solution, embedding all essential features into the chain to facilitate the seamless onboarding of various capital types while prioritizing user experience and compliance.

Easy Onboarding of Assets

With powerful automation and compliance tools, Plume simplifies the asset onboarding process, ensuring effortless integration of assets on Plume in a simple and compliant manner.

Unrivaled TPS & Instant Settlement

Abstracting away the complexities of the blockchain, Plume Network boasts blazing-fast transactions per second, instant settlement, and minimal fees.

Invest & Trade All RWAs

From treasuries to art, green energy to whiskey, Polytrade and Plume will empower users to build diversified portfolios while earning sustainable yields.

Built on Arbitrum Nitro Stack

Plume leverages the robust Arbitrum Nitro stack, the backbone powering all Arbitrum chains, including Arbitrum One and Arbitrum Nova, ensuring scalability and reliability.

To learn more about Plume Network and Polytrade, visit:

Plume Network: plume.network

Polytrade: polytrade.finance

According to CoinMetrics, one of the primary growth areas in 2023 will be the tokenization of RWAs. In real-world asset tokenization, physical and traditional financial assets are mirrored as digital tokens on a blockchain. This enables a more safe and more efficient investing environment for people who do not or cannot keep physical assets.

RWAs have recently garnered institutional interest as well. Many banks are working on tokenizing various projects in order to minimize transaction settlement times. JPMorgan, Deutsche Bank, and SBI exchanged tokenized currencies and sovereign bonds in November 2022.

Bloomberg Crypto on Twitter: "JPMorgan executed its first live trade on a public blockchain, a significant step toward integrating with the plumbing underlying the world of cryptocurrencies https://t.co/fyC05dmwAn / Twitter"

JPMorgan executed its first live trade on a public blockchain, a significant step toward integrating with the plumbing underlying the world of cryptocurrencies https://t.co/fyC05dmwAn

Deutsche Bank on Twitter: "Deutsche Bank and Memento Blockchain's collaboration on Project DAMA demonstrates an innovative, efficient, and flexible proof of concept solution for digital fund management and investment servicing. Read more: https://t.co/LFzxoPIcti#digitalfinance @DBCorporateBank / Twitter"

Deutsche Bank and Memento Blockchain's collaboration on Project DAMA demonstrates an innovative, efficient, and flexible proof of concept solution for digital fund management and investment servicing. Read more: https://t.co/LFzxoPIcti#digitalfinance @DBCorporateBank

They utilized the Ethereum layer 2 scaling network Polygon for the experiment. This reflects increased acceptance of RWA tokenization, as well as their usage of L2 for scalability.

Hamilton Lane joined forces with Securitize, a digital asset issuance platform, to tokenize a piece of its $2.1 billion flagship equity fund on the Polygon network. The fund demands a minimum investment of $20,000, which is far less than the normal minimum buy-in for private-equity investors, which is $5 million. Similarly, Singapore’s Monetary Authority (MAS) unveiled Project Guardian, a trial effort to tokenize bonds and deposits for use in various DeFi techniques.

The number of RWA-backed loans has grown as well. This suggests an increasing demand for RWA tokens as a way of funding real-world assets.

Tokenizing RWAs provides tangible benefits such as lower investment minimums and increased access via fractional ownership, increased trading of previously illiquid assets, increased transparency and security due to the blockchain’s immutable record of transaction history, and automated ownership management and compliance. Let’s dive deep into the world of tokenized RWAs and why you should care.

Why is Tokenization of RWAs a Big Deal?

The RWA market currently has a gross value locked (including the amount borrowed) of $193 million. Tokenization of RWAs and their usage in DeFi offers several advantages over the status quo, many of which stem from the qualities that make public blockchains and DeFi attractive.

Improved Efficiency

The blockchain ledger serves as the ultimate source of truth, minimizing friction during post-trade reconciliation. The atomic settlement further removes the requirement for delayed T+2 settlement, since assets may be instantly given with the payment.

Liquid Markets

Tokenizing assets inside private markets (e.g., pre-IPO shares, real estate, carbon credits, receivables, trade finance) makes previously illiquid markets more accessible — a market with trillions of dollars in mainly inaccessible assets.

Built-in Compliance

Complicated compliance rulesets may be built directly into tokens and applications that deliver token-based services. KYC technologies that protect user privacy while being compliant with relevant legislation can be applied.

Cost Savings

Self-executing autonomous protocols eliminate the requirement for middlemen at every stage. Early studies suggest that blockchain-based record-keeping can reduce bond issuance expenses by up to 90% and fundraising costs by up to 40%.

Improved Transparency

Because public blockchains are auditable in real time, they enable the verification of asset collateral quality and systemic risk exposure. Arguments over record keeping can also be reduced by displaying on-chain activities on public dashboards.

Additional Read: Credit Enhancements and How They Work?

How Does Asset Tokenization Work?

The method for creating security tokens (a form of blockchain token) reflecting genuine digital marketable assets is known as asset tokenization. What kinds of assets are tokenizable? Tokenization may transform practically all virtual or real assets into digital tokens.

A smart contract is used to control and execute digital tokens backed by underlying assets. The terms of the parties’ agreement are incorporated into lines of code already available on the blockchain network, resulting in a self-enforcing and self-executing contract.

After the contract meets its requirements, tokens can be given directly to investors via a smart contract, providing participants with transparency, accuracy, and efficiency by keeping contractual terms and historical data public.

Tokenization increases credit market transparency by placing securitization and debt servicing on-chain. It also lowers the cost of financing for SMEs, making it a valuable instrument for business growth and success.

Here’s an example to help you understand tokenization better. Consider a scenario where an investor is considering entering the real estate market and eye on investing in a $1M property. The investor understands that the property is in a prime place and that its value will only rise in the future years. But the entry ticket is extremely high, so either he has great liquidity to invest, or collateral to obtain a loan from a bank to invest in the property. These two factors, in addition to being a barrier, may pose difficulties for this investor.

Since asset tokenization can allow the property to be divided into as many portions as needed, the $1M property is now represented by 10,000 tokens at $100 each. This entry ticket is more appropriate for the investor since he does not need to go into debt to earn the funds to invest in what he considers to be a lucrative investment. With this small entry ticket, he now has access to invest and decides to acquire 100 tokens to get profitability according to how the $1M investment performs.

Tokenization of RWAs is the process through which you grant access to everyone by opening markets that appear inaccessible. This is not the sole advantage of employing the tokenization of RWAs. The fact that asset tokenization requires the usage of blockchain technology generates a plethora of advantages.

Tokenization of RWAs via Polytrade

Polytrade brings together Real World Assets and DeFi, creating a space where the two can intersect. By enabling the transformation of real-world assets into digital assets within the DeFi ecosystem, Polytrade optimizes liquidity and profit potential.

Polytrade does tokenization in 2 ways:

1. Tokenizes assets and assigns them transparently to each lending pool on its Lender Portal. Our Proof of Trade mechanism ensures transparency by mapping underlying collateral to NFTs, which helps users easily view the assets associated with each pool on the Polytrade website. This is a giant leap forward in terms of transparency in RWA lending pools. Users can now see exactly where the funds from the lending pool have been deployed.

2. Polytrade is also soon launching an RWA marketplace wherein asset originators, investors, insurers, traders, and market makers can come together and can buy, sell, trade, fractionalize and bundle tokenized assets together. This means that investors will soon be able to create a portfolio of pieces or fractions of a Walmart invoice, carbon credits issued by a Dutch company, and loans from LATAM. The asset originator will burn and settle all tokens at maturity while Polytrade ensures that the assets are held with the originator and gate the marketplace to only allow quality assets. The platform adopts an asset-agnostic approach, allowing users to connect a diverse range of assets with the DeFi realm. This approach benefits both asset originators and investors, offering advantages that cater to different risk-reward profiles. When an asset originator comes to Polytrade, their assets are converted into non-fungible tokens (NFTs) that are incorporated with appropriate legal documentation. These NFTs are tokenized representations of specific assets, such as an invoice, loans, carbon credit, real estate, or structured debt. These NFTs are critical in decreasing the barriers to entry for asset origination and investment, expanding asset financing and liquidity, and building bridges between the real world and DeFi.

The DeFi space has evolved from 0 to 60B TVL and RWAs are gaining traction, providing a chance for DeFi users to reconsider how this technology might integrate into their portfolio or provide access to alternative asset classes. RWA protocols are here to help real-world businesses raise capital and expand DeFi use cases beyond what we previously thought was possible.

Polytrade, a web3 protocol focused on global trade, has raised $3.8 million in a seed round led by Alpha Wave, Matrix Partners, Polygon Ventures, and CoinSwitch Ventures, the startup exclusively told TechCrunch.

Other investors include Singularity Ventures and GTM Ventures. The firm has previously been backed by Polygon co-founder Sandeep Nailwal and QuickSwap co-founder Sameep Singhania, among others.

The protocol aims to streamline supply chains through real-time data, Piyush Gupta, founder and CEO of Polytrade, said to TechCrunch.

“The biggest challenge in the global supply chain is the lack of transparency,” Gupta said. “The manual processes, the paperwork; you would be surprised if you submit a document in a bank in India, they still ask you to sign the document with an ink-based signature […] it’s a lot of manual labor.”

Its initial modules include a financing arm that brings real-world yields onto web3. The platform aims to provide small and midsize enterprises and large corporations with access to working capital financing and invoices. The platform has had about 2 million invoices to date, Gupta shared.

In 2023, it expects its trade financing book size to touch $50 million, he said. Next year, it’s looking at the liquidity of $200 million into its lending protocol, and all trading ecosystem volume should cross $1 billion, he added.

While the platform is open to the retail market, its main focus is on institutional players because they are more long-term oriented, Gupta said. The company also wants to expand in Latin American, U.S., and European markets, Gupta said.

Polytrade plans to continue building “various models to bring the entire trading supply system onto the blockchain,” he added.

“My single focus is to bring every single trade document, trade financial players, and trade counterparties on chain so that everybody can go to one blockchain page and know everything about a particular buyer or supplier.”

Exclusive coverage on TechCrunch by @jacqmelinek

Scared about losing your investment? Credit enhancement is a risk reduction approach to safeguard an investor against losses in the underlying asset or debt instrument. Credit enhancement is an approach used to raise the credit quality or rating of an asset-backed instrument or bond in order to increase marketability. Let’s deep dive into knowing what credit enhancements are and how they can protect your funds.

What is Credit Enhancement?

Credit enhancement is a strategy for strengthening the credit risk profile in order to receive better conditions for loan repayment. It is used to lower the risks to investors of certain structured financial instruments. Many market crashes have afflicted the financial sector during the past 100 years. For example, the 1929 Great Depression or the 2008 financial crisis. In such scenarios, credit enhancement becomes more crucial than just improving creditworthiness and leads to systemic benefits.

Issuers primarily use credit enhancement strategies to reduce the amount of interest that must be paid for a specific security because high creditworthiness equates to a good credit rating, which ultimately means that an investor’s investment will reap the benefits assured when the security is issued in the market. When creditworthiness is poor, the credit rating suffers, making it undesirable for investors to invest since they risk losing their money.

Credit enhancement can help to lower the interest rate that a borrower has to pay on their debt, it can make security or investment more attractive to investors by improving its credit quality and reducing its risk. It protects lenders and investors from losses in the event of a default, which can help to maintain market stability and bolster investor confidence and access new sources of financing that may not be available otherwise.

If you’re considering lending, understanding credit enhancements and how to effectively utilize them can significantly boost your potential rewards while minimizing your risks.

Internal and External Credit Enhancements

Credit enhancements can be internal or external. Internal enhancements are provided by the issuer or borrower themselves or are part of the structuring of the credit. External enhancements are provided by third parties.

Internal Credit Enhancements

Internal credit enhancements are measures taken by asset-backed securities issuers to reduce the risk of default and improve the creditworthiness of the securities. These measures can include cash reserve accounts, excess servicing spread accounts, over-collateralization, and senior/subordinate structures.

Cash Reserve Accounts: Cash reserve accounts are funds set aside by the issuer from the proceeds generated throughout the fundraising process. These funds can be accessed if needed to cover any losses or defaults on the securities. This provides a safety net for investors and increases the creditworthiness of the securities.

Excess Servicing Spread Accounts: Excess servicing spread accounts involve adding a basis point cushion over the servicing cost between the assets’ gross weighted average coupon and the weighted average coupon owed to asset-backed securities investors. This surplus spread is put into an account and is available for withdrawal as needed. This measure ensures that there is enough cash flow to service the securities and reduces the risk of default.

Overcollateralization: Overcollateralization is another credit enhancement measure where the value of the assets backing the asset-backed security exceeds the outstanding principal payable to bondholders. In the case of a default, the extra assets can be utilized to compensate asset-backed security holders. This provides a safety buffer for investors and reduces the risk of default.

Senior/Subordinate Structure: The senior/subordinate structure involves issuing more than one tranche for the asset pool, with the subordinate tranches bearing losses before the senior tranches in case of a default. This provides a seniority hierarchy for investors, with the more senior tranches being considered less risky and therefore having a higher credit rating.

Example of Internal Credit Enhancements

Say a lender purchases a commercial mortgage-backed security deal, they have two layers of credit enhancement. The first is at the loan level, where the loan is overcollateralized. Further, depending on the tranche, lenders might have a second degree of protection that comes from their hierarchy in the structuring of the credit.

For example, if a borrower has a $100 million loan on a $150 million property, the borrower has $50 million in equity. For that specific property, the loan to value (LTV) is 67%. Hence, ideally, the first loss should not befall any lender until that equity has been more than wiped out, or has dropped in value by more than 33%. This is the protection offered by over-collateralization.

Therefore, if the $150 million value drops to $75 million, putting the lenders $25 million underwater, you should take a step back and say, “Let’s look at the second level of protection that we have.”

The second degree of protection a lender gets if they hold the top tranche. In this case, the $25 million of loss will be first borne by the first loss lender, and if that is wiped out, then it will be borne by the second loss bondholder, and so on up the cascade to the top tier tranche you are on. This is the protection offered by having multiple senior and junior tranches in a structured loan product.

In a credit enhancement structure, losses can be allocated differently among different holders depending on the terms of the agreement.

External Credit Enhancements

External credit enhancements are often used in third-party procedures to supplement internal credit enhancements. Bond insurance, for example, might be obtained from an insurance firm for the asset pool. If the credit quality of the third-party insurer or guarantor deteriorates, so will the credit quality of the asset-backed security.

Bank Guarantees: A syndicate of banks is the primary funder in many infrastructure projects. In exchange for a charge, infrastructure corporations would sometimes ask one of these banks to guarantee their cash flows. This significantly improves the position of the other creditors. This is because they no longer have to depend on the underlying infrastructure company’s cash flow generation potential. Alternatively, they may depend on a stronger institution, such as a bank, to provide cash flow. Banks, on the other hand, will only agree to issue a guarantee if they have some influence over the process. Before issuing a bank guarantee, most banks need the authorities to regularly monitor the project as well as the company’s records.

Supplementary Income: In certain circumstances, the cash flow from another project is packaged with the cash flow from the underlying project, which lessens the inherent riskiness of relying on the cash flow from one project. This is analogous to the idea of excessive collateralization in bond issuance. It lowers the risk for potential investors and, as a consequence, lowers the interest rate that must be paid in order to access the funds.

Personal Guarantees: Personal guarantees are used to mitigate credit risk in financial transactions. A personal guarantee is a commitment by an individual, typically the owner of a business or a principal investor, to assume responsibility for the repayment of a loan or other financial obligation in the event that the borrower defaults.

Personal guarantees are used to support the creditworthiness of a borrower or issuer of debt securities. By providing a personal guarantee, the guarantor agrees to use their personal assets, income, and creditworthiness to support the repayment of the loan or debt securities in the event of default.

Personal guarantees can be an effective way to enhance the creditworthiness of a borrower or issuer, as they provide an additional layer of protection for lenders or investors.

Credit Insurance: Credit insurance is a type of insurance policy that protects lenders and investors against the risk of non-payment by borrowers or counterparties. The insurance policy typically covers a specified percentage of the value of the loan or security and pays out in the event of default.

By using credit insurance, lenders and investors can reduce their exposure to credit risk, and potentially improve the credit rating of the debt security or loan. This can make the debt security or loan more attractive to investors and can help to lower the cost of borrowing for the borrower.

Credit insurance also provides other benefits, such as increased liquidity and access to funding, by reducing the amount of capital that lenders and investors need to hold in reserve to cover potential losses.

Polytrade’s lender pool to finance RWAs are backed by insurance. We use credit insurance from Coface, Mercury, and AIG to protect against the risk of default or non-payment. By choosing reputable insurance providers like Coface, AIG, and Mercury, we have taken steps to mitigate risks and insure every invoice.

Web3, Blockchain, and Credit Enhancements

Has technology helped credit enhancement? Yes, blockchain has the ability to facilitate secure, decentralized, and tamper-proof transactions that helps enhance the creditworthiness of borrowers and financial instruments. For example, by leveraging smart contracts on a blockchain, lenders and borrowers can agree on specific terms and conditions, including repayment schedules, collateral requirements, and interest rates. The use of smart contracts can eliminate the need for intermediaries, such as banks or credit rating agencies, to oversee the credit enhancement process.

Blockchain provides a secure and transparent record of all transactions and financial information, reducing the risk of fraud and improving credit ratings. By using blockchain-based credit reporting systems, lenders and credit agencies can have access to real-time data, improving their ability to assess creditworthiness and make lending decisions.

In the DeFi ecosystem, tranching is typically achieved through the use of smart contracts on blockchain platforms like Ethereum. A pool of assets is divided into different classes or tranches.

One example of tranching in web3 is the use of collateralized debt positions (CDPs) at MakerDAO. MakerDAO is a decentralized lending platform that allows users to borrow a stablecoin called DAI by depositing collateral in the form of ether (ETH) or other ERC-20 tokens. The collateral deposited by users is divided into different tranches, with each tranche corresponding to a different level of risk and reward.

The highest tranche, known as the senior tranche, has the lowest risk and earns the lowest interest rate, while the lower tranches, known as the junior tranches, have higher risk and earn higher interest rates. In the event of default or liquidation, the senior tranche is repaid first, followed by the junior tranches in order of seniority.

Another example of tranching can be taken from Goldfinch Finance. Let’s say a borrower wants to borrow $100,000. Goldfinch assesses the borrower’s creditworthiness and assigns them a risk score. Based on the risk score, Goldfinch will divide the loan into multiple tranches, each with a different level of risk and potential return.

• Tranche A: This is the safest tranche and has the lowest potential return. Lenders who invest in Tranche A would receive their principal and interest payments before any other tranche. However, the interest rate on Tranche A would be lower than the other tranches, reflecting the lower risk.
• Tranche B: This tranche has a higher potential return than Tranche A but is also riskier. Lenders who invest in Tranche B would receive their principal and interest payments after Tranche A but before Tranche C.
• Tranche C: This is the riskiest tranche with the highest potential return. Lenders who invest in Tranche C would receive their principal and interest payments after Tranche A and Tranche B.

The way Goldfinch works is that there are “backers” who diligence the opportunity and take the junior tranche. The Goldfinch senior pool automatically allocates capital to the opportunity in a junior-to-senior ratio maintained by the Goldfinch Governance. In this way, goldfinch senior investors are always protected by the junior tranche put up by the “backers”.

Each tranche would have a different interest rate and repayment schedule based on its level of risk. Lenders on the Goldfinch platform can choose which tranches to invest in based on their risk appetite and desired returns.

Tranching allows for the creation of more complex financial instruments and structures, as well as providing a way to manage risk in a decentralized manner.

Blockchain Technology in Securitization

Securitization using blockchain technology is one of the more recent breakthroughs in the use of blockchain in finance. Despite the benefits of loan origination, underwriting, rating assignment and reviews, loan servicing, smart contracts, and secondary market trading, blockchain technology has a long way to go in securitization. The capacity to manage financial assets on a blockchain through securitization will let financial experts focus on their appetite for risk.

SAFU

The Secure Asset Fund for Users (SAFU) is an emergency insurance fund created by Binance in July 2018 to safeguard the funds of users. Binance contributed a proportion of trading fees when it launched the fund in order to develop it to a sizeable amount to protect users. The fund holds 10% of all trading fees to indemnify customers in case the exchange is hacked. SAFU fund wallets include BNB, BUSD, and BTC. The wallet addresses where the funds are stored are also publicly available, adding transparency to the initiative.

The purpose of the SAFU is to provide an additional layer of security and protection for users’ funds in the event of a security breach or other unexpected event. For example, if an exchange is hacked and funds are stolen, the SAFU fund can be used to reimburse users for their lost funds. The establishment of the fund was seen as a positive step towards protecting the funds of the investors.

How do you look at lending risk? Like this article? Tweet about it and let others hear about it too!

Stablecoins, like unbacked crypto-assets, are part of the larger crypto-asset ecosystem. They exist to solve the large price swings of unbacked crypto-assets like Bitcoin and Ether, and their comparably low price volatility makes them ideal for a variety of functions that require this attribute.

Stablecoins are digital units of value that use stabilisation approaches to keep their value steady in relation to one or more official currencies or other assets. Stabilisation mechanisms include reserve assets that may be redeemed against stablecoin holdings, as used by collateralised stablecoins and algorithms that balance supply and demand to maintain a stable value, as used by algorithmic stablecoins.

Stablecoins have inevitably become a critical part of the crypto-asset ecosystem due to their frequent use in the trading of crypto-assets and as liquidity providers in DeFi. Three stablecoins currently capture over 90% of the stablecoin market, according to DeFiLlama.com. These include Tether USDT, Circle’s USDC, and Binance’s BUSD.

Below is a list of the top stablecoin tokens as per their market capitalization.

Where are Stablecoins Currently Being Used?

Stablecoins are primarily used to allow the trading, lending, and borrowing of other digital assets. For example, stablecoins let market players participate in speculative digital asset trading and freely move across digital asset platforms, removing the need for fiat currency and traditional financial institutions.

Stablecoins also enable users to store and transfer value associated with digital asset trading, lending, and borrowing inside a distributed ledger system, minimising the need for fiat currency and traditional financial institutions. Digital asset trading platforms and other intermediaries are playing an important role in giving access to and facilitating the trade of stablecoins, as well as in stablecoin arrangement stabilising mechanisms.

There are three key characteristics that define a stablecoin: stability, capital efficiency, and decentralization and many varieties of stablecoins on the market, but the three most common types are fiat-backed, crypto collateralized and algorithmic.

Fiat-backed Stablecoins

Fiat-backed stablecoins are digital assets with a fiat currency backed by a regulated entity such as a bank. Its reserves are in a bank vault or with a reputable financial custodian. These reserves are a weighted combination of cash and currency equivalents such as commercial paper.

For example, a $100 billion fiat-backed stablecoin may include $40 billion in cash and the remaining $60 billion in cash equivalents. As mentioned above, Tether and USD Coin (USDC), the two largest stablecoins by market capitalization, fall into this category. These stablecoins, as previously said, are not decentralised however they are stable and capital efficient, allowing for massive scalability.

The Rise of Stablecoins in Lending

Stablecoins are important in DeFi lending protocols because they serve to decrease volatility concerns and make it easier for both lenders and borrowers to better manage their financial operations.

While USDT has been the crypto of choice for traders with its numerous exchange integrations, USDC has remained at the forefront of the DeFi field due to its near-instant settlement speed, high level of security, and emphasis on transparency and regulatory compliance. According to Flipside Crypto, Circle’s stablecoin has minimal deviations from the $1 price point among the major stablecoins, making it a viable alternative for those seeking stability.

Even on Compound, USDC is the most deposited token, accounting for more than 25% of the TVL.

The objective of DeFi is to improve financial services by employing blockchain infrastructures to provide transparency, security, and community governance. They imitate traditional borrowing and lending while depending on decentralised networks and stablecoins play a major role here as they provide lucrative interest rates.

But why are dollar-pegged stablecoin interest rates so much higher than interest rates on paper dollars? A simple explanation for that is the high-interest rates compensate individuals for the possibility that the stablecoin would depreciate. However, premier stablecoins like USDC and Pax (USDP) are entirely backed by high-quality dollar assets, thus the chance of losing your money is low.

(Disclaimer: not to be confused with financial advice.)

Additionally, the demand for stablecoins is always greater than the supply. As a result, stablecoin lenders demand higher interest rates, and crypto platforms looking out for stablecoins offer high-interest rates to entice new stablecoin lenders. That is why the interest rates on stablecoins are so high.

Lastly, stablecoin can earn yield from all over the world with borrowers offering different risks. By removing intermediaries, stablecoins can access these opportunities directly and get greater yields therein.

Borrowers and lenders have more direct control over their finances with DeFi lending since all operations are handled by smart contracts, which are self-executing algorithms that work on blockchain. One distinguishing feature of DeFi lending is that most loans are overcollateralized, meaning borrowers must make a deposit of assets bigger than the loan amount. This occurs because most cryptocurrencies used as collateral are volatile, and there are no credit scores or identification verification to assist lenders in determining counterparty risk.

So, in a way both lenders and borrowers gain from DeFi lending. The latter can easily obtain loans, whilst the former may earn interest rates that are frequently greater than rates in comparable traditional financial investments.

Stablecoins also provide high liquidity for cryptocurrency exchanges. They allow simple and swift move-in and out of cryptocurrencies without incurring losses on off-ramping or bridging. A rising exchange would need increasing amounts of stablecoin liquidity to keep trading. Stablecoins offer crypto investors a “safe haven”. Whenever the markets go down, the demand for stablecoins surges.

The current lending rates vary on Oasis but historically range from 0% to 8.75%. Aave offers different yields and interest rates to lenders, but they typically range between 1% to 3%.

We at Polytrade enable lenders to deposit their stablecoins into a lender pool with an assurance of an unmatched level of transparency and security. From there, the funds are used to finance real-world assets that are secured by receivables and insured by the likes of AIG, Mercury, and Coface. Each receivable is tokenized and transparent for all to see on our website. At the time of writing, our current pool offers an APR of 11.13% which you can leverage to maximize the earning potential of your USDC.

Stablecoins for RWA Lending

Protocols bringing off-chain investments to DeFi, like Goldfinch and Polytrade are insulated from much of crypto’s volatility. This is due in part to connecting dependable stablecoins RWAs. Major real-world asset players like Goldfinch, Polytrade, Maple, Centrifudge, Credix and TrueFi use stablecoins such as USDC, DAI, wETH, TUSD.

According to data by rwz.xyz, USDC is the most commonly used stable coin and leads the race by 62 pool investments. DAI comes second with 22 pool investments and the rest of the pools use base currencies like wETH, USDT, TUSD and BUSD.

Below is data on the principal outstanding of leading RWA protocols vs stablecoins.

Why is Polytrade Using USDC?

USDC is backed by the US dollar. A dollar-backed stablecoin means that for every USDC created, there is $1 in a bank account supporting the stablecoin. USDC holders can transfer their USDC into dollars at any moment on exchanges such as Coinbase for free. While Ethereum is the most prominent blockchain, Circle has also launched USDC on Algorand, Solana, and Stellar.

There are many reasons why USDC stands out from other stablecoins. These are the same reasons why Polytrade has employed USDC in its lender operations.

The first is that Coinbase and Circle are viewed by the market as extremely cautious companies that strictly abide by the law.

Another reason USDC has become the fastest-growing stablecoin is that USDT has recently had trust concerns. Several prefer USDC to USDT due to USDT’s past backing concerns and lack of transparency with its banking partners.

Third, since its inception, the USDC reserve has been audited on an annual basis. The audit evaluates the reserve’s accuracy, completeness, and composition, as well as the internal controls over financial reporting that assure the accuracy of the financial statements.

The fourth reason is that the Circle has raised a total of $1.1B in funding over 12 rounds and its investors are some of the most trusted and biggest names in TradFi which include Alameda Research, BlackRock & Fidelity.

BNY Mellon, one of the oldest American banks and one of the first to embrace digital asset custody, serves as the “primary custodian” for USDC’s reserve assets. Fireblocks, an $8 billion startup that BNY Mellon invested in last March, powers BNY Mellon’s crypto custody technology.

Though some of these reasons makes USDC centralized, we chose to build on USDC first because of the above reasons.

The BUSD FUD

The US Securities and Exchange Commission (SEC) filed a wells notice to Paxos on February 13, stating that BUSD is an unregistered security. The New York Department of Financial Services (NYDFS) ordered Paxos to stop issuing BUSD on the same day. The reason? Well, as per Matrixport’s Markus Thielen $11 billion in BUSD was issued on the Ethereum network, but another $4.8 billion should have been issued on the Binance Smart Chain as well. The New York State Department of Financial Services (NYDFS) is worried that this $4.8 billion may not have been adequately collateralized.

Polytrade is monitoring the situation closely and has always focused on operating primarily with USDC. Though our hope is that the SEC sees stablecoins especially USDC as “stored value” under monetary transmission law instead of as a security.

What Does the Future Look Like?

With more than $113 billion coins already in circulation, the pros and cons of stablecoins may be debatable, but their rise isn’t. The question is what should be done about them, and who should be made responsible. Answers range from claiming that the present system is fine to speeding research into CBDCs to underlining that stablecoins may be a logical progression of the centuries-old blend of public and private money. For now, let regulatory frameworks define if and when the technology can deliver on its potential. One thing we can be sure of is that both CBDCs and stablecoins will be at the forefront of RWA growth.

Originally written on Polytrade’s blog.

DeFi allows for a new level of financial services that are not controlled by any central authority and operates on a trustless system, making it possible for users to access financial services such as lending, borrowing, and investment in a more secure, transparent, and programmatic way that was never possible before.

To date, most of DeFi has been centred around on-chain financial services such as AMMs & DEX (Uniswap), derivatives (Synthetix) and overcollateralized lending (Aave, Compound).

The Total Value Locked (TVL) of the DeFi industry is presently over $39 billion, with a major part-owned by its largest applications.

However, generating yields only from on-chain activity has its limitations. Firstly, yields need to arise from economic activity taking place on-chain which is currently mostly limited to trading and investing. As trading volumes dry up, so do the yields. The source of yield is not very diverse and resilient.

Secondly, since recourse is extremely difficult in web3 (how do you do collections from a DAO?), most lending has been limited to overcollateralized forms. This means the borrower needs to deposit more value than he borrows. As you may imagine, this often limits the use case for such borrowing to tax optimization or leverage trading. Businesses whether web2 or web3 need undercollateralized lending.

One of the latest trends in DeFi is the use of real-world assets (RWAs). Real-world assets (RWAs) are financial primitives that represent a claim on an underlying asset off-chain and often produce yield from that asset. RWAs have the potential to connect crypto to the real-world economy. To have a real impact on the world, this is absolutely necessary.

DeFi is only exposed to $365M of the multi-trillion-dollar asset class, real-world assets.

Some of the reasons RWAs are gaining momentum:

1. Borrowing demand on protocols like Aave or Compound depends mostly on leverage. But RWA protocols offer under-collateralized lending outside the circular crypto world. RWAs enable DeFi lending to grow from tens of billions to multiple trillions spanning the $1.6T TradFi private credit market, the $5T trade finance market, the $100T equity market and the $300T+ real estate market.
2. Real-world assets in DeFi can offer enhanced returns compared to traditional finance, as they are often subject to lower fees and greater transparency.
3. The base average yield per RWA protocol varies from 3.5% to 16%, and gets even higher when token rewards are included. This is much higher than the current stablecoin yields on crypto-to-crypto lending protocols like Aave or Compound.
4. RWA asset yields are de-linked from the crypto market and provide investors diversification away from the bear-bull market volatility associated with crypto.

Defining Real-World Assets

Tokenisation is the representation on a blockchain of pre-existing conventional assets (e.g., financial instruments, assets from off-chain marketplaces like real estate, music royalties, and so on). On a distributed ledger, a token represents that asset. The token gets its entire value from the real-world asset.

Most real-world assets in Web 2 are illiquid and difficult to value and trade. This is where DeFi comes into the picture. Decentralized systems reduce the risk of counterparty default, as they eliminate the need for intermediaries, such as banks or other centralized institutions.

e.g. if you want to borrow against your RWAs, you use a money market smart contract, rather than another intermediary.

Consider a hypothetical middle-sized mining company in Australia. The company seeks to gather funds to support its expansion and marketing strategy. This company may raise over $100,000 in hours by issuing tokenized bonds rather than traditional banks or private equity investors. This bond token might then be bundled with a number of comparable Australian mining bonds and sold in various capital tranches.

To be able to do this, the mining company must make their finances public as a public company would. The token price varies as their revenues and expenses vary, and variations in credit risk are immediately reflected in the price of the RWA asset.

Because of DeFi, the company can borrow money at a competitive 7–10% rather than the customary >14%, and investors can access competitive real-world lending rates when DeFi returns are low. RWAs facilitate economic growth independent of geographic location, with a long-term steady state characterised by enterprises raising money via digital or traditional channels.

Similarily, the same Australian mining company had a great opportunity to export their minerals to the United States and were due to receive payment after three months. However, the company was in need of immediate cash flow to finance their operations.

They learned about invoice factoring, where they could sell their outstanding invoices to a third-party at a discounted price in exchange for immediate liquidity. This was the perfect solution to their cash flow problem.

They approached a web3 factoring protocol, who agreed to purchase their outstanding invoices for a percentage of the total value based on their underwriting and governance. The mining company received the cash they needed at a great rate and speed as the web3 factoring company was able to deploy global capital quickly. At the same time, the factoring company was able to tokenize the receivable invoice and sell it to another web3 fund who bundled these with a number of comparable US buyer invoices and sold it in various capital tranches to large investors.

RWAs are easily accessible to a wider range of investors, including those in underbanked or unbanked regions. Similarly, in the case of borrowers. This makes RWAs truly global and impactful from day 1. The below map shows the global reach of RWAs and their concentration on emerging markets.

Benefits of tokenized real-world assets (RWAs) on public ledgers:

• Permissionless composability
• Reduced settlement costs/time
• Reduced need for intermediaries
• The process of fractionalisation theoretically giving any retail investor in the world access to any asset by removing minimum ticket sizes
• Access to global market of investors
• Transparency into systemic risks

RWA lending has a lot of room to grow. Only a few protocols exist at the moment, but with yields on crypto-to-crypto lending so low, more protocols will enter the space & boost yields in DeFi.

Top RWA Protocols

These protocols enable lending outside of the circular crypto economy and open up the potential for DeFi lending to grow from tens of billions to a multiple trillions.

Goldfinch manages risk by having auditors who vote to approve borrowers. Goldfinch also requires all participants to pass ‘Unique Entity Check’. These are Soulbound tokens (SBTs) in a form of non-transferrable NFTs. Goldfinch also hedges risk by using a junior and senior tranche mechanism wherein “backers” who diligence the borrower take on first loss risk in the junior tranche whereas the senior tranche is protected. In return for this protection, junior tranches are paid a higher yield than senior tranches.

TrueFi allows Portfolio Managers (“PMs”) to run their own funds. PMs decide who to lend to, and set loan terms with borrowers. To become a PM, the TrueFi governance needs to approve the submission. The PM can allow borrowers to raise multiple loans on

Maple users can give uncollateralized loans to well-known companies based on their reputation. MPL holders will be able to submit recommendations and vote on modifications such as adding Pool Delegates and altering fees and staking conditions as Maple moves towards full decentralisation. Maple is a vehicle for Pool Delegates to acquire financing and earn performance fees. Pool delegates are critical to the process, they go through a rigorous clearance procedure since they are responsible for the stability of Maple’s lending pools. Maple requires each pool delegate to have a stake in the pool and post MPL tokens as first loss capital. If the borrower fails, so does the Pool Delegate.

Centrifuge is a gateway for real-world assets into DeFi, with the goal of lowering the cost of funding for SMEs while providing investors with uncorrelated rates. Its Tinlake offering enables SMEs to access financing by pooling loans secured by collateral. Asset originators may use Centrifuge to finance Real-world Assets such as invoices or mortgages by tokenizing them into NFTs and utilising them as collateral. Each asset originator establishes a single open-ended pool for their assets, into which investors can deposit and withdraw cash at any moment, and the capital can be used by the originator unless withdrawn by the investor.

Polytrade uses a full stack approach to RWAs. Polytrade originates, underwrites, takes insurance and collects on behalf of its investors. Moreover, Polytrade ensures that the asset is in it’s own custody and is transparent for all to see. This proof of ownership is called “Proof of Trade” (PoT). For example, anyone can check the tokenized invoices associated with a pool on Polytrade such as the one here.

The yield is generated by investing in private credit loans to real world businesses. Top 3 sectors are:

Fintech — $104M

Real estate — $42M

Carbon projects — $39M

Trade Finance — $11M (Polytrade)

RWA vs DeFi Yields

DeFi yields are low, but there’s an opportunity to bring TradFi yields into the mix. This is what Polytrade does. With Polytrade, deposit USDC to earn TradFi yields.

Trade Finance as RWA

This is how Polytrade brings Trade Finance assets on-chain.

With tokenized receivables, anyone can confirm your ownership and instantly transfer, and securitize multiple invoices into a multi-tranche product with varying degrees of risk!

Polytrade is built on a proof of trade mechanism (PoT) which certifies that the custody of the underlying instrument is locked with Polytrade and no third party is involved, ensuring end-to-end safety of funds.

By raising $11M to deploy, Polytrade is by far the largest on-chain trade finance protocol today.

Summary

The RWA Market bridges the regulated world of TradFi to the trustless world of DeFi. The ability to convert any illiquid asset into a liquid, freely traded financial asset that precisely represents the asset’s value is predicted to contribute trillions of dollars to the DeFi ecosystem.

RWAs are sure to drive the growth of this exciting new financial system, opening up new opportunities for wealth creation and diversification. It has the potential to acquire a growing number of individuals who will be empowered to take control of their own finances and can access yield opportunities previously reserved for just accredited investors.

Orignally written on Polytrade’s blog.

About the event

“When you are no longer able to change a situation, you are challenged to change yourself” firmly believes Piyush Gupta, Founder and CEO of the most promising DeFi project Polytrade as he explores key industry topics like ‘Ownership’ and ‘Creation Of Value’ at his first ever TEDx Talk at Symbiosis Institute of Business Management, Bengaluru.

Talking about the new role of a CEO as Chief ‘Empowering’ Officer, Piyush Gupta shares his impressions and takeaways with working with decentralized networks and the importance of unlearning broken traditions which is responsible for the success of communities and people, rather than increasing acquisition or revenue.

Who is Piyush Gupta?

Piyush Gupta is a seasoned trade finance professional, blockchain enthusiast, and Angel Investor whose prime focus is investing and building disruptive businesses creating impact.

An alumni of the leading Technological Institute of India, IIT Bombay, he founded Riqueza Capital Group in 2014 with the aim to bring trade finance to the SME and MSME sector in a low cost and hassle-free manner.

Over the years, Riqueza raised 500+ mln USD, expanding financial expertise to Hong Kong, Singapore, UK, UAE.

Piyush is currently the Founder of Polytrade, which explores the crypto liquidity pool and achieves his aim for easy financing and has also been recognized as one of the agents of transformation in the industry.

What did he say and what is the importance of things he said

Stressing on the importance of the rise of the Blockchain in the technology sector, Piyush opens his speech by sharing an interesting and hard-hitting analogy:

While people, in the 90s protested against computer, actually ended in embracing this technology on a daily basis; even today, we often come across similar arguments against adoption of a decentralized network, but sooner or later it would go mainstream, and everyone across the globe would have to adopt it for the best interests.

Quite contradictory to the popular opinion, technology will not take away jobs or replace the deep consciousness of human beings, the ‘humanization’ of technology reflects a challenge for Innovation.

The rise of Web 3

Piyush explains the major complication that arises with Web 2: as a user, you hardly have any control over how your data is used or stored.

As servers are centralized, in countries where users are at the risk of being targets of negative consequences of free speech, it is quite common for government bodies to control and shut down servers if they believe a person is voicing a contradictory opinion going against their propaganda.

With financial institutions like banks being digital and under centralized control as well, governments often intervene and freeze bank accounts as certain situations crop up.

The backdrop of currency debasement is fortifying the feeling that crypto is becoming a broadly investable asset class at the exact moment the world needs it:

Web3 may mean many things to many people, but the core pillar of Web 3 is the concept of Ownership:

Web3 aims to solve the bottlenecks that come with Web2 by remaking the architecture of the internet with decentralization at the core and all its entirety.

Cryptocurrency’s blockchain technology makes it possible for users to not rely on any single government or corporation, so that the control entirely lies within the user.

DAOs seek the same ends of Web3: the creation of value, but by relying. on a decentralized framework in which workers and stakeholders have a true sense of ‘Ownership’ of the entity.

CEO – Chief Empowering Officer

“The role of a leader is not to come up with great ideas. The role of a leader is now to create an environment in which great ideas can happen.”

Web 3 – The Ocean of Opportunity

It’s a common misconception and a growing fear among citizens today that advances in automation, AI, and robotics would eventually replace many of the mainstream jobs today.

This fear isn’t entirely misplaced.

But the bright side of the explosion of web3 and associated DAOs is that we can expect to spawn hundreds of new industries, thousands of new organizations, and open up millions of new job opportunities that didn’t even exist before.

Crypto offers stronger protections for property rights and a global, “permissionless” financial system that anyone can leverage to convert assets into capital in a far more efficient way than today’s archaic alternatives.

Summing up Web 3 vs Web 2, Piyush Gupta shares an interesting interview of Alexis Ohanian, mentioning people spending hours and hours playing games like Candy Crush but getting no value for their precious time spent.

But what changes majorly with Web3 is that if you are a user of a game, you can play to earn.

Moreover, if you are a developer of the game or a part of it, you can earn from it even as others are playing the game.

Piyush believes being on the blockchain brigade today is like being in an elite university over a 100 years ago: it is a place for the smartest of intellectuals to meet and work together.

The rise of the Blockchain based infrastructure has definingly revolutionised the centuries old practise of Trade Finance, reshaping this and opening up new revenue opportunities and newer models of credit.

With traditional systems, we have manual contract creation – where the import bank manually reviews the financial agreement provided by the importer and sends financials to the correspondent bank.

Exporters use invoices to achieve short term financing from multiple banks, adding additional risk in the delivery of goods. The shipment of the goods can be delayed due to multiple checks by intermediates and numerous communication points.

Since each party across countries operates on different platforms, miscommunications and frauds are common.

Bills of lading are financed multiple times due to inability of banks to verify their authenticity.

With Blockchain in the picture, financial documents linked and accessible through Blockchain are reviewed and approved in real time, reducing the time it takes to initiate shipment.

Invoices accessed on Blockchain provide a real-time and transparent view into subsequent short term financing.

Bills of lading are tracked through the Blockchain, eliminating the potential for double spending.

The title available within Blockchain provides transparency into the location and ownership of the goods.

Contract terms executed via Smart Contracts eliminate the need for correspondent banks and transactional fees.

Ending:

Piyush Gupta closes his speech highlighting the insane amount of opportunities offered by decentralized finance with a powerful call to ‘Embrace the Future.’

Decentralized finance offers the possibility to bridge the gap of over $1.6 trillion of unmet requests in Trade Finance, while allowing SMEs to get unprecedented direct access to trade financing opportunities in the crypto ecosystem.

DeFi is also building exciting applications with real-world use cases that have the main purpose of democratizing finance and creating. a more open and transparent financial system.

You are not what is happening now, you are how you chose to handle it.

About Polytrade:

Established in 2014, Polytrade is a lending protocol that caters to the working capital needs of small and medium scale enterprises in developing economies, thereby helping them fulfil their orders to large global enterprises like IKEA, Walmart, Nike etc. We have financed US$ 500 million worth of invoices in the real-world. With an in-depth awareness of pain points and issues faced by SMEs, in 2021, we started developing a blockchain-based decentralized finance protocol that will harness the massive liquidity pool of the crypto world to meet the working capital needs of SMEs globally by tokenizing real-world invoices and bringing them on-chain into the DeFi space. The protocol is already on Testnet and all set to launch in January.

The untapped opportunity in trade finance is of the order of $ 1.7 trillion and by connecting buyers, suppliers, insurance service providers and investors through a seamless platform, Polytrade aims to transform and amplify global trade for healthy economic growth. Polytrade is also working on a Metaverse product that will enable enterprise-to-enterprise transactions in the Metaverse as the space continues to see an influx of consumer brands.

Shaping the future of Trade Finance 🚀

👥 Our Social Media Links:

Telegram | Announcements | Twitter | Website| Discord | Instagram | Vietnam community | Spanish community | Korean Community | LinkedIn

Introduction: Polytrade is a blockchain underpinned decentralized platform that aims to transform receivables financing by using liquidity from the real-world crypto assets. The platform will connect all the parties involved in receivables financing, i.e., buyers, sellers, insurers, and investors, for a seamless receivables financing experience. Polytrade brings safe and insured real-world assets to crypto natives.

How Will Polytrade Work?

• By Tokenizing Real-World Invoices: As Polytrade works on DeFi, this borderless financing infrastructure will turn the ownership of real-world assets (“Receivables”) into digital tokens.
• By Harnessing Crypto Liquidity Pool: Polytrade will enable harnessing the massive crypto liquidity pool and address the gap in receivables financing by providing SMEs a new source of funding.
• By Offering Safe insurance backed investments to Crypto Investors: Polytrade will provide safe investment opportunities to Crypto investors to sweat their crypto assets in real-world business use cases.

What is Receivables/Invoice Finance?

Receivables/invoice finance is the most secure way of trade finance where open account trade invoices are secured by insurance and assigned to a platform for collection when due. It provides early liquidity to exporters and a secured short-term liquid asset to investors/lenders.

How Can Polytrade’s Decentralized Platform Solve the Big Gap in Receivables/Invoice Finance?

Polytrade is familiar with the most common invoice financing gap where suppliers/sellers need to wait for a long time to get paid for the supplied goods. These delayed payments may affect the supplier’s business and fulfill their various obligations. Thus, invoice financing plays a crucial role in bridging the gap by providing the funds to sellers in a shorter period against issued invoices. Several CEFI institutions control the invoice financing process that charge a certain amount of fees and offer no transparency, impacting both suppliers and the buyers.

Making this process completely decentralized can bring greater transparency to the invoice financing ecosystem as the crucial details regarding the buyer and rating can be algorithmically determined using the publicly available data sets. Polytrade aims to use this decentralized method to eliminate/ reduce the need of CEFI institutions in invoice financing and make it more efficient.

Polytrade ensures to offer what it promises. And since Polytrade is competing with CEFI institutions on cost, the platform uses layer- 2 solutions for low cost and faster transactions than the CEFI ecosystem. Polytrade is confident of achieving its mission and shaping the future of trade finance through its solutions and a team of experts. The core team of Polytrade includes veterans from Trade Finance, Crypto, and Fintech.

What are the Key Benefits Offered by Polytrade to the Sellers and the Investors?

Polytrade offers low cost, faster transactions, and higher liquidity to SMEs without any size constraints.

Key Benefits for Sellers:

• No Restrictions on Ticket Size: Unlike traditional financing options, Polytrade enables financing even for small-sized invoices.
• Low-cost Financing: Polytrade aims to minimize financing cost and remove intermediaries involved in the invoice financing system with decentralization.
• Quick Turnaround: Polytrade’s highly active and capable governance facilitates a quick turnaround and also reduces processing times to a minimum.

Key Benefits for Investors:

• Easy Access to Trade Finance: Polytrade allows potential investors to invest in a centuries-old asset class without getting into its nuisances.
• Monetize Idle Credit Lines: Polytrade enables investors to earn higher returns by directly investing in a large number of invoices from businesses spread across diverse industry sectors.
• Secured Platform: Polytrade provides a secured blockchain-based platform that offers best-in-class security to investors.

Why Should Users Choose Polytrade?

By onboarding on Polytrade, everyone gains! The platform aims to enhance the experience of all the parties involved in the invoice financing system, like the sellers, buyers, and investors. Polytrade uses untapped crypto liquidity to bridge the gap in traditional receivables financing. Here’s what sellers, buyers, and investors will get by choosing Polytrade:

• Sellers will receive timely payments.
• Buyers will get a streamlined credit facility.
• Investors will earn interest payments with insured and safe investments in real-world assets.

Choose Polytrade and join us on our journey to shape the future of trade finance.

About Polytrade

Polytrade is a blockchain-based decentralized protocol aiming to transform receivables financing connecting buyers, sellers, insurers, & investors for a seamless experience. It brings safe and insurance-backed real-world assets to the crypto world. Polytrade will provide real-world borrowers access to low interest and swift financing to free up critical working capital tapped from crypto lenders. While the project will start with a focus on trade finance, eventually, it would evolve into a full-stack lending protocol for small businesses.

Shaping the future of Trade Finance ✈️

👥 Polytrade Official Social Media Links:

Website | Discussion Chat | Announcements | Medium | Twitter | LinkedIn | Korean Community

Polytrade is thrilled to announce its upcoming IDO on one of the leading protocols for cross-chain token pools and auctions, Polkastarter.

Polytrade started its journey to shape the future of trade finance by tokenizing real-world invoices, harnessing crypto liquidity pools, and offering safe insurance-backed investments to crypto investors. Since our inception, we have received overwhelming support from our community and investors on our platform offering and solutions, for which we are truly thankful to everyone.

Polytrade IDO on Polkastarter

Polytrade IDO is coming on one of the top IDO platforms, Polkastarter. We will soon be releasing the details regarding the whitelisting process, maximum and minimum allocation, the number of whitelisted addresses, the timings, and more. Join all our social platforms and stay tuned to keep an eye on all the latest updates regarding this IDO rather than missing your chance to participate in this exciting event.

Polytrade’s Mission to Solve the Big Gap in Receivables/Invoice Finance

Polytrade, a blockchain underpinned decentralized protocol, aims to transform receivables financing using liquidity from crypto assets. The platform is aware of the various issues and the vast financing gaps rising in the trade finance industry. Polytrade aims to bridge this rising gap by providing funds to the sellers at the earliest possible time against the issued invoices. The platform promises to bridge this gap, maintaining transparency in the process with decentralization, low cost, and faster transactions than the non-transparent. CEFI institutions that charge high transaction fees.

By Onboarding on Polytrade, Everyone Gains

Polytrade aims to enhance the experience of each party involved in the receivable/invoice financing ecosystem. Thus, it aims to benefit sellers, buyers, and investors in different ways:

• Sellers will receive timely payments.
• Buyers will get a streamlined credit facility.
• Investors will earn interest payments with insured and safe investments in real-world assets.

A Successful Funding Through Oversubscribed Private Rounds

Polytrade has recently concluded its private funding round with whopping USD 1.2 Million from various leading investment funds in the blockchain space like Sandeep Nailwal (Polygon), Orion Protocol, AU21 Capital, Spark Digital Capital, LD Capital Limited, Icetea Labs, Momentum 6, Ramani Ramachandran (Router), and more.

We hope that this IDO will be an excellent experience for the entire team of Polytrade and help us take successful strides in our journey to shape the future of trade finance efficiently.

About Polkastarter

Polkastarter is the fully decentralized protocol for launching new ideas. Our curation process and industry access enable us to offer the best new projects in blockchain and digital assets.

With Polkastarter, decentralized projects can raise awareness, build a loyal community, and receive long-term support. Users of the platform will be able to participate in a secure and compliant environment and use assets both in and beyond the current ERC20 standard.

Website | Twitter | Telegram | Telegram Announcements

About Polytrade

Polytrade is a blockchain-based decentralized protocol aiming to transform receivables financing connecting buyers, sellers, insurers, & investors for a seamless experience. It brings safe and insurance-backed real-world assets to the crypto world. Polytrade will provide real-world borrowers access to low interest and swift financing to free up critical working capital tapped from crypto lenders. While the project will start with a focus on trade finance, eventually, it would evolve into a full-stack lending protocol for small businesses.

Find out more about Polytrade:

Website | Telegram Discussions | Announcements | Twitter | Korean Community | LinkedIn

Today’s announcement marks an essential step towards establishing Polytrade as the leader in shaping the future of Trade Finance. Icetea Labs, an emerging investment firm supporting visionary founders and energetic teams to create a long-lasting positive impact through decentralization technologies, has made a strategic investment in our project.

This investment is a concrete step towards significantly raising brand awareness and capital for Polytrade with the help of Icetea Labs’ extensive network and expertise. With specialization in project incubation, advisory, Polkadot migration, and product development, the support of Icetea Labs will play a crucial role in pushing Polytrade’s mission further.

Icetea Labs is known to accompany projects on the journey from building a strategic plan, raising funds, marketing, and product development to implementation in real life. Therefore, we are immensely proud to be backed by such an investor and mentor.

About Icetea Labs

Icetea Labs is a laboratory dedicated to incubating and nurturing Polkadot projects. The firm supports visionary founders and energetic teams to create a long-lasting positive impact through decentralization technologies. They finance potential projects on their own, mentor, and assist invested projects in connecting with their extensive network of strategic partners to raise both capital and brand awareness.

About Polytrade

Polytrade is a blockchain-based decentralized protocol aiming to transform receivables financing connecting buyers, sellers, insurers, & investors for a seamless experience. It brings safe and insurance-backed real-world assets to the crypto world. Polytrade will provide real-world borrowers access to low interest and swift financing to free up critical working capital tapped from crypto lenders. While the project will start with a focus on trade finance, eventually, it would evolve into a full-stack lending protocol for small businesses.

Find out more about Polytrade:

Website | Telegram Discussions | Announcements | Twitter