PERSISTENCE PROTOCOL- Focus on ‘Real-World’ Adoption!
Persistence is a protocol powering institutional open finance. It aims to solve inefficiencies in cross-border payments and e-commerce. It was started by the thesis of using public blockchain technology and features of decentralized and open finance (Defi/OpFi). It aims to enable fundamentally new capital to enter the cryptocurrency industry. Persistence bridges Defi and traditional finance by facilitating the lending of crypto assets using real-world assets as collateral.
There is a four-step process in which persistence performs and these are;
Tokenization of real-world assets using (Non-fungible tokens or NFTs) like invoices
Trading of tokenized real-world assets against stable coins
Usage of these tokenized real-world assets as collateral to borrow originate coins
Packaging of the loans originated into tranches/pools to create fixed income investable products (securitization of debt)
Persistence’s two-pronged approach:
Institutional focus: Asset-based Loaning P2P Exchange back utilize case through the Comdex dApp for regulation ‘physical traders and trade financiers
Crypto-native focus: securitization of obligation (pooling of debt) and stablecoin loaning platform to donate introduction to real-world income-generating resources to crypto-native partners.
ASSET-BASED LEARNING
This is a money lending and loaning business to borrowers who put their assets such as invoices, account receivables, inventory, property e.t.c as collateral. The first use case of Asset-Based lending in the persistence ecosystem is Comdex, a Decentralized commodities Trading and trade financing platform that covers the end-to-end trader journey (essentially matches commodities buyers and sellers of physical commodities).
SECURITIZATION OF DEBT(POOLING OF DEBT)
This is a process which allows a primary financier (an asset originator) to merge or pool together multiple steady cash-flow generating assets into one or more asset pools.
Why Persistence is Gearing Up?
Supply of capital: interest rates in recent times is part of a long-term trend spanning centuries, asset classes, political systems and monetary regimes.
Demand for capital: Large cooperates have no trouble getting access to financing from financial institutions. MSMEs, on the other hand, struggle to obtain loans.
Explosive growth of stablecoins : The stablecoin market cap surpasses $10 billion in market capitalization and growing rapidly. There will be an ever-increasing supply of borderless and instantly settled capital looking for new ways to generate yield
PERSISTENCE TECH SACK
The Persistence Software Development Kit (SDK) is made of standard modules that can be utilized to demonstrate commercial centers for the simple trade of significant worth. Modules of the SDK can be incorporated into existing applications. Then again, the modules can be utilized in various stages and blends to turn up new commercial centers.
Basically, the tech stack is intended to oblige four significant elements, which are:
Accessibility — Bringing actual items on-chain as NFTs.
Liquidity — Opening up undiscovered liquidity in the crypto space for MSME organizations.
Supportability — Bringing crypto into reality with true use cases and a “work-token” that turns into the establishment for sustainable pay.
Development — Enabling the formation of front-line crypto-confronting items zeroed in on interoperability to give new freedoms to the crypto community.
Some Products And Services Powered By Persistence
Comdex; an institutional-confronting exchanging and trade financing platform, is the leader DApp in the Persistence ecosystem.
On the product side, the Persistence group started with an emphasis on the commodity trading industry. The product trading industry is extremely archic and elite, basically because of the restricted roads to make auditability, guarantee trust and give liquidity. Comdex addresses these issues through blockchain coordination and is acquiring footing, having taken care of more than $55M in exchange volume up until this point — welcoming a bigger number of resources on the chain than its (more extended set up) contenders consolidated.
The persistence team collaborated with product trading business visionaries in Singapore who were chipping away at making a commercial center for ware dealers called Comdex. The go-to-advertise system is working with family workplaces and SME associations that use their business organizations to drive reception.
pLend; is a stablecoin loaning stage sponsored by genuine resources (like solicitations). It empowers stablecoin holders to supply liquidity to pools to help procedure on Comdex, accordingly creating returns for stablecoin holders from certifiable pay-producing resources.
plend will permit stablecoin holders to consistently take part in the $65B worldwide exchange financing industry. This is a colossal jump towards the bridging of traditional and decentralized finances(TradFi) and Defi. Presently stablecoin holders don’t need to depend on shaky new Defi protocols to produce appealing profits from their resources; they can now take advantage of a solid and worthwhile industry as old as trading itself.
In the crypto ecosystem, Defi is something making big waves. The measure of significant worth secured Defi protocols has risen to more than $20B, with the generally stablecoin market capitalization increasing from $5B in February of 2020 to $32B at present. Defi, in any case, will stay a small detail within a bigger landscape contrasted with traditional finance market sectors while it’s restricted only to the domain of crypto resources.
The aggregate market cap of the crypto business is under 0.01% of the conventional economy. For the blockchain and crypto industry to come to the multi-trillion dollar stamp and genuinely flourish, we need to move past the ‘theoretical’ stage into the ‘esteem creation stage’ by taking care of certifiable issues utilizing resource tokenization. Working with this shift is our main goal.
The Persistence tech stack gives the foundation to adequately connect the decentralized and conventional monetary domains in an assortment of regions, and we’re well en route to assisting with introducing the new monetary worldview.
IN CONCLUSION;
Persistence has been able to make considerable progress with its tech stack, It is a new asset class in the form of real-world income-generating assets. It is a system that aids efficient global capital allocation by giving loans to businesses and traders based on allocations.