DeBond Protocol Announces Decentralized Bonds
Much like OpenSea created the ERC-721 standard and NFT market, DeBond has created the ERC-3475 to make securities possible on the blockchain and allow users to create their own bonds and derivatives backed by cryptocurrencies or NFTs. They will also be releasing their own exchange where bonds and derivatives can be traded. Contracts built on the ERC-3475 standard will be compatible with the marketplace. After a bond is released to the market, its price decreases until somebody purchases it. DeBond is also releasing a wallet extension to its regular ERC-20 wallet, which will enable it to display all ERC-3475 assets in a central hub.
Bonds are issued by governments and corporations to raise money. The bond essentially issues a loan to the government/corporation from the bond purchaser. The bond purchaser will be reimbursed the face value of the loan on a specified date as well as paid periodic interest payments.
According to their pitch deck, DeBond’s new ERC standard along with its accompanying apps/services will allow securitization of any digital asset with fixed rates and guaranteed repayment.
They will offer users fixed-rate and floating-rate bonds to cater to both risk-averse users and risk takers. Users deposit a cryptocurrency or NFT as collateral into a multi-layer pool that will either reward with fixed or floating rate bonds.
The project initiated in February of this year and went through the first round of fundraising in May. Their Series A was also made/ will be made available this month. Series A preferred stock is the first round of stock made available to the public by a startup. Series A investors typically purchase up to 30% of the company.
