Introduction
Loans are a fundamental part of the market economy. Most companies would not be able to achieve or achieve their goals without borrowing money from banks or other more specialized lending institutions. One of the oldest and longest-lived forms of lending is a loan secured by collateral: that is, a commitment that if the borrower fails to meet his obligations, a specific asset will be given to the lender. Although this type of loan is basically, it is still central to many businesses and lending institutions.
With the proliferation of digital assets (especially cryptocurrencies), the idea of using them as collateral evidently responds. It would both increase the value of such assets in the mainstream economy and help foster the crypto industry by creating new options for digital entrepreneurs. However, at the moment, most institutions are unwilling to take advantage of this opportunity. This is not due solely to their conservatism. An entire infrastructure must be created before digital assets can reasonably be accepted as collateral. Depository Network promises to build such infrastructure with the help of Smart Contracts.
How will the Depository Network enable digital lending?
Depository Network does not just create a platform. Instead, a design is developed that lenders can then use to set up their own white label depository platforms that are fully integrated into their own websites and work on their own terms. In particular, lenders can decide for themselves what kind of cryptocurrencies they would accept as collateral. This also determines which of the two contracts will be used: the self-executing DEPO Smart Contract or the manually executed DEPO Escrow Contract, which is used to settle currencies without Smart Contract Support.
After concluding a credit agreement (for each type of currency) with the digital collateral option, a borrower can create a special DEPO wallet used to store the asset. These purses are provided with multiple signatures, with the keys being handed over to the borrower, the lender, and the network to ensure that the consent of all interested parties is necessary to complete a transaction. DEPO Oracle will use Smart Contracts to respond to requests from authorized parties and give them access to asset data. The DEPO Smart Contract ensures that the lender receives collateral in the event of a default or automatically returns it to the borrower upon expiration of the contract. With DEPO Escrow Contract, either the lender or DEPO can release the collateral. The system will consider changes such as other collateral, if agreed by mutual agreement.
What advantages does the Depository Network offer?
The Depository Network team consists of business people and professionals with experience in many different areas, including fintech and blockchain projects. The project is geared towards business-to-business use. At the same time, it covers a wide range of lenders, from traditional banks to P2P credit platforms (whether Fiat or cryptocurrency) and offers a similarly broad range of business models. The Depository Network Design is simple and straightforward, allowing these lenders to easily integrate and integrate deposits into their existing services to expand their options. The use of smart contracts should also be useful for audit purposes and ensure maximum transparency with very little effort.
Token-sale details
A Small but Essential Utility for the Future of Cryptocurrency
The mainstream interest in cryptocurrencies is growing. Every week there is news from an established company or institution that wants to participate in the boom. But the real benefit of this class of digital assets in daily business is still severely limited due to the liquidity problem. Important steps must be taken before cryptocurrencies can really go beyond their current niche.
Setting up the infrastructure required for the secure use of digital assets as security for credit is one such step. The Depository Network solution has the benefits of simplicity and adaptability on its side and can therefore be very successful. It all depends on whether a sufficient number of established lenders will decide to adjust them. Given their present interest and the opportunity to significantly expand their business in this area, this does not seem impossible. They would not be the only beneficiaries: many owners of cryptocurrencies will be better able to start new businesses if they can use their tokens as collateral. This in turn would help