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What is a Bond?
A bond is a fixed-income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). A bond could be thought of as an I.O.U. between the lender and borrower that includes the details of the loan and its payments. Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debt holders, or creditors, of the issuer.
Bonds x Blockchain: Crypto bonds
A blockchain Bond is a specific type of an automated bond contract that uses the capabilities of blockchain databases that can operate as cryptographically-secure yet open and transparent.
Blockchain bonds have the ability to potentially revolutionize Financial markets by creating a decentralized database of unique digital assets.
Issuers of bonds could be able to completely automate the entire bond issuance process through blockchain bonds. This would potentially result in shortened settlement and transaction times as well as greater transparency for the issuer in transactions. The increased transparency and automation of the process would remove the need for intermediaries and therefore generate increased savings for issuers.
Position Exchange is a Decentralized Crypto platform aiming to bring different DeFi features under one big project with its goal to become The Decentralized Crypto Platform of choice. As we are focusing on Derivatives Products, Bonds are a great financial instrument that has a stable and predictable income stream and big market demand.
Looking at the current DeFi products and projects, there is an abundance of Lending Protocols providing Automatic Pools where lenders and borrowers interact. This design is efficient to ensure there is always liquidity available and funds to borrow. However, the return on investment remains very low.
Bonds follow a similar format but provide higher/stable return and are targeted for a bigger market. Users can go from individuals to organizations or companies. Bonds also have broader use-cases and purposes, they can be exchanged, used for governance, financing and much more. It is a highly useful financial instrument and integrating it in the Blockchain can be game breaking!
Position Exchange is introducing its first Derivative Product, the fully on-chain and stackable bonds. Users can purchase bonds and stake it in the Bond Pool with a stable and fixed APR for a determined duration and once the bonds reach maturity, the issuer will pay back the investment plus interest. The bonds will be backed by assets as collateral and will be locked in smart contracts. Payment to investors when bonds reach maturity will be ensured and guaranteed by Position Exchange.
They can also exchange bonds in the “Position Bond Exchange” and even issue their own. Individuals, companies, and projects can lock their assets (tokens, coins, NFT or even real estate) as collateral and issue Position Bonds to borrow the money from the investors.
Position Exchange is creating a complete feature, providing financial solutions to DeFi users and introducing bonds to blockchain.
Users can find the base of smart contract source code here: //github.com/…
Position Bonds Development stages:
Users will be able to experience the fully on-chain Crypto Bonds. Issue, Purchase and Earn high yield with Position Bonds.
The Bond feature will developed on 3 main phases:
Phase 1: Position Bonds implementation powered by smart contracts. Purchase and Stake Position Bonds with High & stable returns. Proposing crypto bonds standard smart contracts.
Phase 2: Bond Exchange. Buy and Sell Bonds easily and fully on-chain on the Bond exchange.
Phase 3: The Bonds Launchpad. Whether you are an individual, project or companies seeking financing and investment, you can issue your own bonds easily on Position Exchange by applying and providing a collateral.
Position Exchange in short:
Position Exchange is a Decentralized Crypto Platform with an entire Ecosystem, fully governed by its community. Users can Stake, Farm, Trade, Swap, Cast NFTs, Earn and Invest in an open, transparent and trust-less system that runs fully on-chain.
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