GemCoin Spotlight: Polytrade Finance (Real World Asset)

Ready to explore the future of Real World Assets (RWAs)?

Introducing Polytrade Finance, the newest lending protocol on Polygon that brings sustainable #RWA returns to the forefront. Today we take a closer look at the game-changing Polytrade Finance., your gateway to the discovery of Real World Assets, Trade Finance (Beta - Active), Real Estate (coming soon), Bonds (coming soon) and more.

Let's dive in 👇

Overview

Polytrade Finance, headquartered in Dubai, UAE, is a cutting-edge blockchain-based decentralized protocol that has been pioneering the real-world asset (RWA) space since its 2022 inception. From introducing the first tokenized invoice pool to setting the standard with ERC-6960, Polytrade Finance has consistently been at the forefront of RWA innovation.

This trailblazing platform seamlessly connects buyers, sellers, underwriters, and investors, revolutionizing the efficiency of RWA trading. By tokenizing real-world invoices and harnessing DeFi liquidity, Polytrade empowers real-world clients with swift access to low-interest financing from crypto lenders.

Furthermore, Polytrade provides secure, insurance-backed investment opportunities for crypto investors in tangible commercial activities, all while promoting smart receivables financing and fostering collaboration between financial providers and SMEs. In the dynamic DeFi landscape, Polytrade is a beacon of progress, bridging the gap between digital assets and real-world economic transactions.

How does Trade Finance work

PolyTrade, a blockchain-based Trade Finance platform, supports SMEs by meeting their Working Capital Needs. For example, for John's furniture business facing a three-month credit period with IKEA, PolyTrade provides instant liquidity by buying 95% of his invoice. Three months later, PolyTrade collects the invoice amount from IKEA and retains the 5% difference as risk compensation.

Polytrade Finance's funding model is based on investors depositing cryptocurrency assets used to finance SMEs like John and investors earning regular interest. The platform effectively bridges the gap between investors and SMEs, providing a secure way to invest while meeting short-term financial needs.

How does Polytrade Factoring work

On PolyTrade, John can access funds quickly by factoring his $4,000 invoice to IKEA with a 3-month credit period. PolyTrade releases the funds upon delivery of goods, collects the invoice 3 months later and completes the process for existing users within 24-48 hours, which is much faster than traditional institutions that take 1-2 months.

Polytrade Real World Assets (RWAs) Platform

The Polytrade RWA platform offers a comprehensive account management system that allows users to monitor trades and configure preferences. With robust features and intuitive design, the RWA Marketplace offers a smooth and efficient user experience.

How to use Polytrade RWA Marketplace

Purchase

Login with your verified email or request whitelist access to purchase assets. Connect your wallet (Metamask or Venly), choose an asset category (e.g. "Invoices"), select an asset and confirm the transaction for a seamless purchase, returns will be credited to your wallet.

Relisting (Coming Soon)

This feature is temporarily disabled for user convenience during the startup phase. Once it is active, you can login, select an asset and use the "relist" button.

Counter Offer (Coming Soon)

Temporarily inactive during the startup phase, this feature allows asset buyers to negotiate terms with originators.

Fraction Assets (Coming Soon)

Currently inactive, fractionalization enables asset owners to expand investor access.

Settlement at Maturity

Asset creators collateralize assets with timely repayment and direct payment to buyers.

Delays and Defaults

Compensation management ensures a transparent process.

As of now, only active assets for beta users are available in the system. About 29 assets were sold during the testing phase. It is worth noting that this testing phase corresponds to the beta launch, which currently serves a limited user base. The alpha version will be released in November 2023.

Features

• Asset Origination: Allows asset originators to list real-world assets as collateral for capital and liquidity.
• Loss Pool: Provides on-chain functionality during disputes, with Polytrade handling the recovery of funds from insurers.
• Fractional Ownership (Coming soon): Diversifies portfolios without direct ownership.
• Counter Offers (Coming soon): Adds negotiation flexibility.
• Relisting (Coming soon): Offers enhanced asset control and liquidity management.

Benefits

Polytrade Finance The RWA Marketplace provides broad trading opportunities, significantly increasing liquidity for traditionally illiquid real-world assets.

• Investors gain access to a wide range of asset classes, facilitating portfolio diversification and risk management.
• Smaller investors can participate through fractional ownership, making asset markets more inclusive.
• The platform promotes trust among participants by providing robust transparency and security in asset ownership and trading.
• Compared to traditional platforms with intermediaries, the RWA Marketplace offers potentially lower transaction costs.
• Asset ownership and investment opportunities are democratized, providing equal access to all participants.

TRADE Token Use Cases

Governance

Trade provides a democratic and community-driven approach by giving token holders an important role in shaping the governance of the protocol.

Protocol Promotion

Trade serves as a reward mechanism for protocol users on the Polytrade platform, covering all key stakeholders including Borrowers, Buyers, Service Providers and Channel Partners.

Staking Rewards

By staking Trade tokens, investors can benefit from Polytrade's network security and earn attractive rewards for contributing to the stability of the network.

Settlement Tool

Trade tokens increase the efficiency of transactions by facilitating reconciliation processes with channel partners and service providers in the dynamic trade finance ecosystem.

Conclusion

PROS

• Innovative RWA Platform: Polytrade Finance is at the forefront of real-world asset innovation by providing a blockchain-based platform for tokenizing assets such as invoices, offering efficient access to finance for customers.
• Experienced Team: The project is backed by an experienced team of industry experts, ensuring it is at the forefront of decentralized finance (DeFi) developments.
• Diverse Asset Support: The platform's DLT token standard ERC-6960 enables partial ownership of real-world assets ranging from invoices to digital collectibles and real estate.
• Secure and Insured: Polytrade Finance provides a level of security for crypto traders by offering secure, insurance-backed trading opportunities.
• Partnership and Funding: The project has raised significant funding and has key partnerships including Mastercard, Chainlink and more.
• Token Utility: The $Trade token has multiple use cases such as governance, protocol incentivization, staking rewards, and serving as a settlement tool.

CONS

• Limited Availability: Some features such as relistings, counter offers and fractional assets are not currently enabled in the first phase, which may limit user options.

*Users will have access to most features when the Alpha version is released in November 2023.

• Risk Factors: While the project has addressed security risks through audits and insurance, no platform in the crypto space is completely risk-free.

In conclusion, Polytrade Finance It stands out as a project that aims to make a difference in the Real World Assets (RWA) space. Their cutting-edge platform offers secure, efficient and inclusive solutions that empower both businesses and investors.

With an experienced team, strong partnerships and a versatile Trade token, Polytrade Finance is poised to make a lasting impact in the DeFi space. As it continues to bridge the gap between digital assets and real-world economic transactions, the future looks promising for this pioneering project. Keep an eye on Polytrade Finance for exciting developments in the RWA world!