As the veil of ignorance was lifted from my eyes, I came to discover a microcap project supported by illustrious figures such as @CoinSwitch and @PolygonVentures.
One in existence for over 2 years. It'll generate more than $200m of liquidity and trading volume of $1b. 🧵
1/ The unraveling of this thread is a journey worth taking.
Already having more than 10M in TVL, @Polytrade_fin generates safer and predictable APYs.
1️⃣ Polytrade's Core Concept
2️⃣ How it works
3️⃣ RWAs
4️⃣ Roadmap plans
5️⃣ $TRADE charts
2/ A pretty creepy finding before I begin this thread.
Polytrade leaves its footprints around really well even in my cupboards.
Not only did I find Polytrade's branded bottle, at the same time, I just so happen to discover it in web3 and decided to thread on it.
Here goes👇
3/
1️⃣ Polytrade's Core Concept
Polytrade is an on-chain trade financier.
They provide advance funding to suppliers while receiving the payment from payer at a later date.
Invoice receivable are being tokenised in this case.
4/ So, as a lender you would be pretty eager to know where your yields come from.
And, investors like @CoinSwitch @PolygonVentures, they would want to know how Polytrade generates revenue.
So how real are these yields?
5/
2️⃣ How it works
First let's start by understanding, what are invoice receivables. They are a promise that you will receive payment at a later date.
Invoice receivables on Polytrade are tokenised as NFTs along with the details of that invoice.
6/ It starts when John sells a good. He issues an invoice to Ikea specifying credit terms.
Ikea owes John $100, which is the outstanding invoice.
Johns records $100 as invoice receivable on his balance sheet.
But why would John need Polytrade to finance this trade?
7/ Because the credit terms (i.e. 3 months due) delayed Ikea's payment to John. It means that John would receive $100, 3 months later.
If John needs the cashflow earlier, he would need a financier like Polytrade who will buy this invoice from Ikea and then finance John first.
8/ In return, for the advance funding, John receives only 95% of the invoice receivables from Polytrade, who will then collect the proceeds from Ikea later.
Polytrade earns this 5% premium and shares that with its lenders.
Would trade financing continue to shine?
9/
3️⃣ RWAs
As covered in my previous thread, RWAs are heating up.
With a gigantic market size and tender macro situation that would put out many companies and turning them to on-chain credit solutions.
10/ Its a competitive space with many other credit protocols.
So how Polytrade differs is where they improve on competitors' features with something of their own along with strong partnerships line-up.
11/
4️⃣ Roadmap plans
Roadmap is well lined up so lets dive in to what has Polytrade planned and its partnerships line-up.
12/
🔹Security and transparency
Unlike any other protocol Polytrade transparently map each asset to a pool via NFTs and they are the only protocol in DeFi offering credit-insured RWAs from @AIGinsurance, @coface, Mercury.
13/
🔹Lender v3
Will incorporate new features that benefit the lenders:
- Multiple pools with different rates, tenures
- Multiple currency support
- Dedicated partnership and exclusive boosted pools
- Clear revenues
- $TRADE utility
14/
🔹RWA marketplace
Users can now list, buy, sell, fractionalize, and bundle RWA NFTs like never before!
This means one can now build a portfolio of portions of a 5 to 6 six figure Zara, Mango, Urban Outfitter invoices to generate yields!
15/
🔹Beta Governance Staking (staking program).
The staking pools of 2M + 0.5M $TRADE (11% of circulating supply were locked for 3-6 months and revenue share (50% to $trade holders).
16/
🔹ZK-ID
Polytrade plans to use a Polytrade ZK-ID, basically tokenising KYC while protecting privacy.
This will ease the transition of different trade participants on-chain, creating that connection to the global financial ecosystem
https://twitter.com/Polytrade_fin/status/1642918196947877888
17/
🔹NFTs
More recently they have entered the NFT space, using NFT as yield boosters.
And they are partnering with blue chip NFTs like @y00tsNFT. Never have I seen such a partnership, so I am keen to find out how it'll work.
18/
🔹Partnerships with other projects
1. Already live with @useteller
2. Pool announced with @ClearpoolFin
3. In talks with @Stablzone @0vixProtocol @AtlendisLabs @defactor_ @CredoraPlatform and major market leader @goldfinch_fi to do a pool soon!
https://twitter.com/DeFi_Made_Here/status/1641795321930940416
19/ Lastly, @Polytrade_fin is leading the RWA narrative on Polygon and held a seminar with thought leaders in Dubai.
https://twitter.com/Polytrade_fin/status/1635322877175267328?s=20
20/
5️⃣ $TRADE charts
Chart is at nearly an ATL and good to pick some. Though prices has moved up last week due to the recent capital raise news.
I would see this as a longer term play
MC of 6mil, TVL of 11mil (TVL continues to pick up)
Source: https://twitter.com/arndxt_xo/status/1644301509780463617