The global bond market has a total volume of $130 trillion, and the total market capitalization of the cryptocurrency market has crossed $2 trillion this year and continues to grow.
Companies are always looking for readily available financing options. Traditionally, large and medium-sized companies receive financing through bank and bond financing. The cryptocurrency market, especially the decentralized finance (DeFi), with its global reach and no intermediary environment, could become a new source of finance in the near future.
However, in its current state, the DeFi lending market is not suitable for established businesses. Most of the protocols that provide cryptocurrency are used as collateral and increase the collateral for the underlying loan.
This is where BondAppetit comes in.
BondAppetit is an Ethereum-based DeFi protocol for corporate loans. Its native stablecoin is fully backed by income generating bonds held in a licensed trustee bank with real-time monitoring capabilities.
The BondAppetit protocol has a hybrid model and a strong team with the necessary expertise and connections in both the traditional financial and cryptocurrency markets. BondAppetit aims to become an important player in the debt financing market.
Behind the scenes of stable currencies
The core of the protocol is USDAP, a decentralized stablecoin that is fully backed by income-generating bonds. The bonds are held by a trustee licensed in a stable jurisdiction and their availability can be tracked at any time on the protocol website.
The information is sent from the custodian and is digitally signed, making it impossible to overwrite the data. No protocol – neither USDC nor USDT – has this level of transparency, so the demand for decentralized stablecoins with strong and transparent security is insatiable. Many organizations and protocols need such assets.
In October 2021, BondAppetit raised its first investment round of $350,000.
More information about farmers’ appetites here
With a guarantee matching real assets, BondAppetit can disburse USDAP loans on terms that are more attractive than other lending protocols. DeFi loans are typically backed by volatile digital currencies and are issued against collateral of 300% or more. On the other hand, USDAP is backed by stable assets in the real world, eliminating the need for excess collateral.
BAG is a governance and reward token used to vote for the network and collect bond yields in dollars. It is an ERC-20 token based on Compound Governance, a recognized industry standard with the highest degree of transparency and security. BAG token holders can place their tokens for 3, 6 or 12 months and earn USD on bonds that support the BondAppetit stablecoin.
Plans and ambitions
This startup has ambitious plans. This includes increasing the USDAP supply, bringing in more brokers and custodians, initiating loan distribution, and launching new blockchains and second-tier solutions beyond Ethereum (ETH), Binance Smart Chain (BSC), and Waves (WAVES). There are also plans to significantly increase marketing efforts in addition to the grant program.