The advancement of the world, as well as the advent of the internet and other technologies, has brought about the existence of another kind of asset.
One which does not involve the real asset.
This kind of asset is called the digital asset which subsists or exists in a binary setup.
Examples of the digital asset are crypto-currencies, digital bonds, tokens, tokenized shares e.t.c
So the investors won't have to Invest only in the real asset but also in this digital asset in order to gain more as well as a better efficient utility.
Now coming down to the normal and regular lending and borrowing practice which has been an age long practice.
The adoption and use of this digital assets will play a major role in ensuring the efficiency of the process.
The traditional or old method of lending and borrowing using physical or real assets as collateral will be replaced by the use of digital assets as collateral for borrowing and lending.
#Depository is a decentralized collateral network which will be a storehouse or an avenue for digital assets to be used and accepted as collateral for borrowing and lending.
This platform plans to utilize the blockchain system and blockchain technologies in order to revolutionize as well as advance the traditional method of lending and borrowing.
Any lending institution can use use depository network as an avenue to create their own depository platform with their own conditions regarding collateral.
The lenders and borrowers meet on this platform and make agreements on the loan, whereafter the borrower will design a wallet in the depository network and deposit his digital asset in the wallet as a collateral for the loan to be obtained.
The deal is endorsed and signed by the lender, borrower, and the depository network.
The smart contract now comes into play as the lender gives the borrower the agreed cash in edict currency.
Immediately the contract is concluded or ended, the smart contract unlocks the digital asset earlier used as a collateral to the borrower.
The depository network will get rid of many setbacks that have been present in the traditional method of lending and borrowing.
This network will address the problem of the lender's inability to set-up their own digital assets depository network due to its expensiveness and the tediousness in managing it.
But the depository network itself is an avenue for this.
The depository network also unlocks the potential of using digital assets as collateral which was impeded online using real assets.
It will solve the problems of insecurity by the use of the blockchain's smart contract to automatically run the deal and the endorsement of the deal by the three bodies (lender, borrower, and the depository network).
And the network is a fully decentralized system thereby eliminating all the unnecessary and time-consuming protocols present in the centralized system.
| Token Symbol | Depo |
|---|---|
| Price | 1 DEPO - 0.02 USD |
| Hard cap | $15 Million |
| Soft cap | $2.6 Million |
The depository network will better the traditional or old lending and borrowing method of using real assets by replacing it with the method of using digital assets as collateral for loans thereby meeting the needs of digital asset owners too.
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| AUTHOR | |
|---|---|
| Bitcointalk Username | Cosmicart |
| Bitcointalk Link | https://bitcointalk.org/index.php?action=profile;u=1633177 |
