Zug, Switzerland, December 22, 2023
As traditional finance goes through a wave of digitalization thanks to blockchain technology, bonds have their share. Bonds are debt securities that symbolize loans and emerge as the preferred choice for investors looking for stable and reliable opportunities. Digital bonds, on the other hand, represent a step forward from traditional methods and the adoption of innovative approaches.
A move away from traditional paper-based processes in favor of blockchain-based structures promises increased efficiency, transparency and accessibility in finance. However, this transformation requires developers to fulfill the technical prerequisites that serve as the backbone for issuing digital bonds. Adapting to cutting-edge technologies is not only a choice for digital bond issuers, but is necessary to ensure robustness and reliability. From automated smart contracts to clearing protocols, the technical infrastructure supporting digital bonds plays a central role in positively reshaping the financial landscape.
Decentralized finance (DeFi) protocols offer myriad alternatives to traditional financial instruments and attract investors with user-friendly products. However, failing to meet essential technical requirements can undermine the benefits that make DeFi attractive. Therefore, it is imperative to carefully consider all technical prerequisites when selecting a DeFi platform to ensure a reliable investment opportunity.
An interbank quality DeFi protocol, Secure financing introduces a new perspective to lending projects in the crypto market. The protocol stands out in a landscape populated by many predecessors by adopting a backlog-based architecture, marking a notable leap in innovation. Secured Finance’s distinctive approach sets it apart and strengthens its ability to redefine and elevate the dynamics of decentralized finance.
Secured Finance departs from traditional pool-based lending models – where liquidity depends on users’ escrow funds – with a revolutionary innovation. Unlike traditional pool-based lending projects, which rely on local interest rates and may not accurately reflect overall market trends, Secured Finance’s order book-based system introduces a pricing mechanism transparent and equitable determined by market demand and supply. The order book-based approach improves market efficiency and opens up new investment opportunities for investors.
Ensuring transparency while minimizing costs
In blockchain-based systems, gas fees for each transaction are a necessary element for the system to function. Although gas fees differ by platform, the Ethereum network, favored by many in the DeFi space, sometimes demands high fees. Secured Finance addresses the challenges posed by Ethereum’s gas costs and processing capabilities by implementing lazy evaluation, a technique derived from computer science. Lazy pricing enables efficient order book management, ensuring market transparency while minimizing gas costs.
“Secured Finance has carved out a unique position in the crypto market through its technological innovations and architectural features,” noted Masa Kikuchi, founder and CEO of Secured Finance AG, adding: “Our goal is to provide new market references and contribute to a broader financial market. , including the derivatives market.
Blockchain technology has liberated the financial world by erasing the limits of central authority. Likewise, Secured Finance extends this liberation to the digital bond market, acting as a bridge eliminating quid pro quo between lenders and borrowers. The DeFi protocol effectively increases liquidity in the secondary market by implementing a distinctive market structure that integrates an order book system and a clearing house.
Media contact name: Contact Secure Financing
E-mail: (email protected)
Business: Secure Finance AG