Traditional Bonds against Crypto Bonds
Bonds are fixed-income instrument that is a form of credit from an investor to the borrower. In the sense of a bond, it can be a means for issuers to fund their projects and operational expenses. The types of bond issuers range from municipal, corporate and state governments to sovereign ones.
Bonds are a popular choice for investors because they can provide a consistent income stream that could add a bit of stability to your portfolio of investments. While it’s considered more secure and sensible to make investments in bond, it is the risk of default. Credit rating is based upon third-party agencies like Standard and Poor’s, Moody’s and Fitch Ratings.
Crypto bonds, thanks to their blockchain-based nature, could transform the bond market with regards to transparency, security and automation.
What is it that works?
Utilizing smart contracts, based on the difficulty of bond issuance and ratings as well as the complexity of rating, efficiency, transparency and speed of the process could be improved. In addition, by eliminating the middleman, the crypto bond issuers can benefit from an affordable cost. In a way the crypto bond uses DeFi derivatives and assets to make bonds. This is a first-of-its-kind attempt to revolutionize and improve the range in digital currencies.
What are position bonds?
While still in its early stages it is clear that the convergence of competitors within the DeFi market is already apparent. The DeFi market today is mostly dominated by projects and products that offer automated pools in which the borrowers and direct online lender are able to collaborate. With the growing intensity of competition, the ROI of investment is decreasing.
Specialized in derivatives and crypto platforms, Position Exchange aims to enhance the investors’ DeFi product choices. By doing this diversification of the portfolio of investments will be enhanced as will the capacity of investors to manage risks. Position Exchange introduces its first derivative product, a fully tied and stackable.
Similar to bond trading customers can purchase and sell crypto bonds through Position Exchange. Fully connected to DeFi and DeFi, in the next step, investors can put the bond into the Bond Pool with a stable and fixed APR for a set period. If the bonds are due to mature and the issuer is able to repay the principal amount plus interest. To lessen the chance of default, different assets are used to back these cryptos in collateral, and the platform uses smart contracts to secure the assets. This means that the repayment of bonds can be assured.
Exchange of bonds on the Position Bond Exchange is also feasible. In fact, users are able to create their own. Individuals, businesses as well as organizations can offer position bonds to finance their businesses and projects by locking up their assets (tokens coins, tokens digital art or even virtual real property) to serve as collateral.
Why should you position bonds?
Instant Cash Back The position swap bond gives you an opportunity to trade or redeem your investment. can easily trade or redeem your investment at any time you wish.
fully chainedNo intermediaries, just a completely decentralized, secure and open system powered with smart contracts.
Stable and high-quality response:Earn a high and steady yield on your bonds by putting them into bonds with the highest yield.
No risk:All bonds are secured through position swapping and the payment with interest is secured to holders of bonds.
accessible to all :Whether you are an individual or project, or a business seeking financing or investment, you are able to make your bonds easy to issue by supplying collateral.
1st Position Bond Issues $2.5M Of Value Converted in minutes!
The first two positions bond issues were released on February 2, by Position Exchange (issuer) with two assets at their face values (BUSD as well as POSI). Both bonds were sold out within only a few seconds and received overwhelmingly positive feedback from the public, totaling $2.5 millions.
Following the expiration of the sale the bonds were made in active status and were able to be staked or transferred. The purchasers were able to put their bonds in bond pools, which had a stable and fixed APR of approximately 400 percent.
The maturity yield of bonds issued is about 700%. This is that for $1000 put into the fund, investors will receive $7,000 when the bonds have matured (2 years) in the event that they do not break their commitments to the pool throughout the time. It is important to note that stakes rewards can be earned each day!
The bonds should be placed within the medium
A variety of articles about different Crypto news websites were published by the website Position Bonds in the last week. Particularly notable are reports that focus on Cointelegraph, Bitcoin.com, DappRadar as well as Bitcoinist.
The stages of development of Position Obligations
Users will have the opportunity to enjoy fully on-chain crypto bonds using Position Bonds. It doesn’t matter if they want to buy, issue or get high yields with cryptobonds Position Bonds will equip them with the one platform they require.
The bond’s characteristics will be realized in three major phases:
- Implementation and creation of smart contract obligations. After this stage is completed then users will be able buy and sell in position bonds for large and steady yields.
- It is the Position Bond Exchange, where users can purchase or sell cryptocurrency bonds with ease and entirely on-chain exchange.
- This is the bond launchpad. The feature allows it to be simple for individuals, projects , and businesses to create their own bonds using Position Exchange by submitting an application and supplying collateral.