We are absolutely delighted that Blocksync Ventures has invested in Collateral. Blocksync’s mission to accelerate the development of blockchain interoperability and Web3 technologies, makes for an ideal and long term strategic relationship.
With the explosion of decentralized financial activity, Collateral Defi is creating a platform allowing anyone to unlock additional value from their cryptocurrencies without having to sell their actual underlying asset base. Building on the themes and possibilities presented by decentralized collateralized loan networks, one of the most popular defi use cases with many multi-billion dollar platforms, Collateral Defi allows users to collateralize their holdings to act as a fiat payment tool. By reimagining the loan process so that users automatically spend their newly collateralized value instead of receiving it as a loaned sum, Collateral Defi brings the power of decentralized collateralization of assets to the retail and merchant marketplace.
Collateral Defi introduces a solution to a problem we didn’t know we had, how to gain spendable fiat currency using cryptocurrencies, all without actually parting with your initial assets. Through Collateral Pay and Collateral Loan, two of the applications on the network, users and merchants can effortlessly spend and accept fiat currency in a decentralized manner. In collaboration with merchants that partner with Collateral Defi, users gain access to a growing network of worldwide retailers, with the ability to effortlessly spend crypto anywhere and at any time.
Even if the merchant you want to spend with isn’t integrated with Collateral Defi, or if a user simply requires a loan, anyone can easily take out a collateralized loan and pay it back at the lowest available interest rates on the market. Collateral Defi also offers a savings application, enabling anyone to generate up to 60 percent APY by staking assets into its smart contract lending pool. With the introduction of all of these possibilities in one decentralized network, Collateral Defi took all the best offerings previously available from decentralized collateralized loan platforms and made them spendable..
With defi’s continued growth and popularity, the preeminent defi platform, Ethereum, is starting to show many unsustainable weak points. Under its current iteration, Ethereum is unable to handle the new influx of users and defi projects, with network transaction fees regularly surpassing $50-$100 for a single relatively simple transaction. As more smart contracts are involved, Ethereum fees continue to compound. More users are becoming aware of the financial benefits that defi facilitates, so they are looking for alternative and more usable platforms, with Polkadot fitting the mold.
Developed by the co-founder of Ethereum and ex-CTO of the Ethereum Foundation, Gavin Wood, Polkadot is meant to solve all the bottlenecks Ethereum is currently experiencing. Wood created a cost-effective, fast, highly scalable, and interoperable platform serving as the framework of new and established decentralized applications, with many projects opting to launch on Polkadot as their platform of choice. Until Ethereum is functional at much higher capacities, Polkadot serves as the optimum taking-off point for most projects, providing an easy opportunity to bridge to other networks (like Ethereum) in the future if the community and developers choose to.
Collateral Defi introduces an entirely new use case to the decentralized ledger industry, setting the framework for spending, saving, and loan possibilities for the future. This will all be made available right at your fingertips, with a simple point-and-click interface that makes it easy for buyers and merchants to get involved.
Running on Polkadot, one of the most efficient and effective blockchain platforms currently available, Collateral Defi is working to create more tangible surrounding the cryptocurrency market.
COLLATERAL is the next generation payment gateway built on Polkadot and accessed through an interoperable crypto wallet, granting access to spending power by using crypto as collateral at the point of sale. The platform allows users to pay instantly by using crypto as collateral, giving its global user base access to funds and the ability to pay and spend crypto instantly anytime, anyplace, anywhere.
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