The rapid evolution of the cryptocurrency market in the past couple of years has caused the number of tokens to skyrocket. Along with the increase of tokens, the number of crypto exchanges inside the crypto community has also increased. Although there are several platforms, many have drawbacks like lock-up periods, a lack of transferability from platform-owned wallets, and high transaction charges.
As the sector continues to achieve new heights, technology adjusts and evolves to meet the market’s shifting demands. SuperBonds, the world’s first DeFi bond market, is one platform that is tackling some of these challenges. It’s based on Solana, a blockchain that doesn’t charge the usual hefty fees.
The benefit of blockchain-based bonds
The benefit of blockchain-based bonds is the ability to help capital markets achieve fast, efficient, and secure transactions through distributed ledger technologies.
Bonds allow investors to lend money to borrowers, such as businesses or governments, who then utilize the money to fund their operations while earning interest on their investment. They are a popular investment option, particularly in traditional finance, because they are normally a low-risk alternative with an annual return of roughly 5%.
SuperBonds allows users to self-custody bonds with specific end-values, which means they have possession of their digital assets because they control the private key. To simplify the bonds market, the platform issues bonds in the form of NFTs, which can be redeemed at any time for a fixed yield and settled by any end-owner holding the NFT.
Bond underwriting is also available on the platform, allowing investors to park their money in a fixed-income bond, with Bond Underwriters taking the other side of the trade. These liquidity providers send capital to the trader’s pool in order to generate the greatest amount of interest for traders. This platform also offers staking for those to yield rewards for holders. 60% of the total emitted tokens are reserved for the protocol rewards
A DeFi bond platform eliminates many issues by providing secure end-values that the consumer can cherish, meaning that customers gain ownership of their digital property .
This platform enables DeFi investors to purchase bonds with a guaranteed return in $USDC. It also gives users the option of storing their investment in any wallet of their choice; they can self-custody it in any wallet of their choice. Furthermore, many CeFi (centralized finance) products in the cryptocurrency space today require funds to be stored within the platform in order to generate yield, but DeFi (decentralized finance) has provided an alternative.
Also, many CeFi (centralized finance) products in the cryptocurrency market today inherently require funds to be held on the platform in order to make a profit.