DeBond’s Seed Funding Round Confirms Demand For Decentralzied Bonds In DeFi
December 24 2021 - 11:41AM
NEWSBTC
DeBond continues to make inroads in the decentralized finance
industry. Its approach to decentralizing bonds through blockchain
technology and smart contracts resulted in a $500,000 seed funding
round. Various prominent backers and investors see merit in this
approach, paving the way for broader financial access to everyone.
DeBond Keeps Making Inroads The seed funding round for DeBond shows
the overall demand for decentralizing traditional financial
instruments. Bonds have been an essential part of the finance
industry for decades, yet their core model has not changed. More
importantly, bonds are only accessible to qualified investors and
governments, creating a fractured landscape. With the help of
decentralized technology, those fractures can now be mended and the
appeal of bond vehicles can be expanded upon. The recent seed
funding round for DeBond – a $500,000 financial injection – puts
the company’s valuation at $12.5 million. Seed round investors
include Bixin Ventures, Lotus Capital, Wave Capital, Hotlabs, etc.
The vision of decentralized bonds and collateralized debt
obligations change the playing field for consumers and institutions
exploring new opportunities in the finance industry. The approach
to these new financial vehicles is made possible through the
ERC-3475 token standard. It introduces independent functions to
read, transfer a collection of bonds, and have bonds redeemable
from the bond issuer. That latter option will only be possible if
specific conditions have been met. Leveraging blockchain technology
for the bonds industry introduces new opportunities that would
otherwise not be accessible. An extra benefit of ERC-3475 is how it
enhances the traditional liquidity provider tokens on the Ethereum
blockchain. More specifically, it can replace the ERC-20 token
standard by supporting additional data and logic forms. As a
result, a more advanced version of LP tokens can prove beneficial
to DeFi-oriented projects and services and help enhance reward
systems or even introduce new ideas. A Big Step For Decentralized
Finance The vision by DeBond can bring more use cases for bonds and
derivatives to the table. Those are two focal points for the team
and two crucial investment vehicles in traditional finance that,
while making some inroads in crypto, remain largely unexplored in
the industry. The strong support by these backers and investors
confirms exploring these options may prove worthwhile. DeBond
intends to enhance the overall appeal of yield farming in the DeFi
industry. The current landscape requires users to own specific
crypto assets to engage in yield farming on a particular chain.
However, decentralized bonds may change that narrative for the
better. They can also pave the way for a more complex economic
system centered around ERC-2475 as a token standard.
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