Debond Protocol’s Disruptive Innovation Did It, Seed Round Investors Say
Two of the Debond Protocol project seed round investors have identified the key criteria they looked for — like they do with any other project in their portfolios — before investing in the new platform that seeks to bring traditional bonds to the blockchain.
Debond Protocol, the Web 3 infrastructure for decentralised bonds, is currently in a private initial coin offering (ICO) round stage with a plan to hold an initial DEX offering (IDO) by June. The project has raised US$1.5m thus far out of its required US$4.3m and is still seeking keen investors. Some of the investors whose participation has been confirmed in this round include individuals, Hotbit, Collinstar, and Bixin Venture (as the lead investor).
Why Debond Protocol?
For Bixin Ventures, which has had stakes in transformational blockchain projects and at different stages including MINA, Algorand, Casper, Ankr, Arweave, xDAi, Nervos amongst others, focusing on investing in early-stage infrastructure projects that cultivate and facilitate mass adoption of open finance through permissionless and decentralized networks is a top priority. It particularly singled out projects that help in “accelerating the next disruptive Web 3.0 innovation, like Debond (Protocol) and its ERC 3475 standard” hence its investment in the project.
Along with the ERC 3475 token standard, Debond Protocol is also proposing an infrastructure to support a smart contract-based derivative and bonds secondary market. The standard is to enable any user to be able to convert any digital asset into security or derivatives. This is to make them tradable assets that can be used as hedging assets and can be traded on Debond Protocol’s decentralized bonds exchange.
With some of its founding members being among the earliest adopters of Bitcoin and its ecosystem, the Bixin Group is one of the largest wallet providers in Asia with over a million registered users. Its investment arm, Bixin Ventures, is well-grounded in the blockchain and crypto-verse. It’s why, regardless of the financial interest, Bixin Ventures’ investment in Debond Protocol demonstrates the utmost level of trust in the Debond Protocol’s capability to achieve the paradigm shift it aims to bring to the decentralized finance (DeFi) and traditional bonds markets.
“Bixin Ventures would be very proud to support Debond Protocol to bring a new standard, introduce new functions and finance tool in the decentralized network that help all stakeholders in the crypto world with the opportunity to take full advantage of blockchain solutions,” the investment firm states when asked what it would mean to it if Debond Protocol achieves its sought objective.
An individual investor, Alan Hubbard, finds Debond Protocol’s proposition quite compelling on a similar line particularly considering that there has been a lot of progress so far. As a financial advisor who works in the traditional world of finance, he feels that the disruption that Debond Protocol brings to a traditional industry is worth supporting.
“One of those assets I use for clients is bonds,” Hubbard said about his decision to invest in Debond Protocol. “What intrigued me about this project was putting that particular asset class on the blockchain.”
The Debond Protocol’s World
Debond Protocol is striving to be an important player in the decentralization of the derivative and bonds market which has a huge potential. Aside from enabling users to convert any digital asset to security and users of the protocol getting insurance in repayment, the project promises a more gas-efficient and advanced solution for existing LP tokens. It can make NFT, LP, and ERC 20 tokens to be convertible into Debond Protocol’s ERC 3475 bonds.
At a total market capitalization of over US$128b according to CoinGecko’s estimate as of April last year, the DeFi space is getting bigger. While the DeFi market is projected to 100x in the next five years by an insider in the face of the crypto crackdown which could accelerate its trends, its development is limited by the existing ERC 20 LP token standard hence the ERC 3475 infrastructure’s relevance as an important puzzle for DeFi 2.0.
Debond Protocol, the ERC 3475 pioneer startup building infrastructure for bond and derivative secondary market in DeFi, will also provide frontend and Debond wallet, decentralized bond exchange, and an open and functional market for security.
The project proposes to operate on the basis that the update of the current yield farming system (which entails maximizing the return on cryptographic assets) will bring more changes, possibilities, and believers to the DeFi system. The outlook will push these financial products and services that are available to anyone that has internet access and can use Ethereum to the next stage where a more complex economic system can be designed using the ERC 3475 bonds standard.
“We are expecting it to go beyond the boundary of our imagination: new protocols around decentralized options, derivatives, and any other form of financial product among many other concepts,” says Yu Liu, CEO of Debond Protocol. “DeBond is an open-ended platform by design. It has all the potential needed to substantially increase the efficiency and computational complexity of DeFi. We are looking forward to seeing a series of applications and use cases built on top of the ERC 3475 infrastructure.”
The startup will function as a decentralized investment bank that issues bonds for users and provide customized derivatives to hedge against risks. Its income will come from three sectors:
1. 10% stamp duty of governance and settlement tokens
2. The service fee for issuing bonds and derivatives contracts.
3. The market-making process on secondary bonds and derivatives market.
The Debond Protocol team is based in Paris, France. Its founding members came from the finest graduate schools in France (Institut Polytechnique de Paris, Université PSL (Paris Sciences & Lettres), and Université Gustave Eiffel). With a scholarly background and work experience in traditional finance, they believe in their vision and want to dedicate themselves to the game-changing project. Why don’t you come along?
Pitch Deck: shorturl.at/ozBT1
Product Timeline: A demo of our frontend is available here https://debond-protocol.github.io/ (use test Ether in the HECO chain for some operations).
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