Statista discovered that nearly 6000 cryptocurrencies were in use by 2021. This is a significant increase on the few digital tokens available in 2013. With the rapidly evolving and expanding cryptocurrency industry, It’s no wonder that the amount of tokens has been skyrocketing.
There has been an increase in investment platforms in the crypto ecosystem, in addition to the rising popularity of tokens. Many platforms are not perfect. Some have lockup periods and cannot transfer to platform wallets. Others can also be expensive. Due to Ethereum’s liquidity providers, investors can lose a lot of their profits due to withdrawal fees.
The technology industry is evolving as it continues to grow and evolves to adapt to the ever-changing needs of its customers. These issues are being addressed by one platform: SuperBondsThis is the first DeFi bond exchange. It’s built on Solana, a blockchain that operates without the traditionally high fees.
Bonds are a way for investors to lend money to borrowers such as companies and governments. The cash is used by the borrower to fund their operations while the investor earns interest. These bonds are popular investments, particularly in traditional finance. They offer a lower risk option with a return of around 5% per year. As they can offset higher risk investments they are frequently used in diversified portfolios. But they come with high fees.
SuperBonds are a way for DeFi investors buy bonds with a guaranteed return of $USDC. Users can store their investments in whatever wallet they choose. They also have the option to self-custody their money in any wallet that suits them. SuperBonds uses the Solana network for low transaction costs to circumvent the high transaction cost.
Many CeFi products (centralized finance), in today’s cryptocurrency space, require funds to remain within the platform for yield generation. DeFi, on the other hand, has offered an alternative.
“With CeFi crypto products today, there is the hidden risk of fund storage on a platform to generate yield, which many DeFi products solve. However, with DeFi protocols, there is uncertainty in terms of the terminal value, thus rendering collateralization prospects slim for the user’s LP tokens,”The company stated this in a blog posting.
SuperBonds eliminates these issues by enabling bonds with certain end-values that the user can self-custody—meaning users have possession of their digital assets because they control the private key. NFTs are issued by the platform to simplify the bond market. They can be redeemed any time at a fixed yield. The NFT can then be settled for any owner.
Bond underwriting is also available on the platform. This allows investors to place their money in fixed-income bonds, while Bond Underwriters take the opposite side. These liquidity providers send capital to the trader’s pool to create the maximum interest possible for traders. SuperBonds offers holders the option to stake for rewards. 60 percent of tokens emitted are reserved for protocol rewards. Participants receive SB tokens as rewards. All SB token holders can stake SB tokens in order to receive more rewards. Bond underwriters are allowed to place their LP tokens. The Treasury will receive a portion of the proceeds, while a portion will be used to pay flexible incentives for bond buyers.
However, investing in bonds has been a traditional choice of investment. Investors have faced high fees as well as restrictions that make it more difficult. SuperBonds allows crypto investors to invest in bonds at lower fees and with more flexibility.