Silta Finance
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Silta Finance

Recap of Silta’s 2022 and next steps

Launch of the Silta Impact Marketplace, signing commercial contracts with borrowers, scoring and due diligence in progress, and more. This is a summary of where Silta stands after the year 2022.

Launch of the Silta Impact Marketplace

Firstly, we launched the first version of our Silta Impact Marketplace dApp! You can view it via our website at silta.finance. The responsive version of the dApp is still being built, so in the meantime you can browse the Marketplace on your desktop. This version includes a project list of sustainability projects already pre-qualified by Silta, and a borrower portal where borrowers can register, manage and submit loan applications. We wrote another blog explaining these features in more detail, which you can read here.

Commercial contracts with borrowers

I’m happy to share the tremendous news that Silta has started to agree commercial contracts with several borrowers aiming to build renewable energy projects in South America.

  • Token rewards through our delegates model and staking pools
  • Finance new activities and developments on the Silta protocol
  • To cover protocol costs

Silta Scoring

Our Silta Score has progressed significantly. We are now beginning to test the feasibility of three versions of our DD methodology:

  • Silta Score Micro: This version has been designed with foundations, family offices and retail in mind. It is well suited to deals ranging from 5M — 50M USD. In terms of the level of DD, it is a lighter version of “Silta Score Institutional”. In this analysis, we produce a DD report complemented by an “Exceptions report” detailing anything not included in the DD analysis. It’s a faster and less costly DD process, making it better suited to smaller-size infrastructure deals.
  • Silta Score Institutional: Provides the deepest level of diligence and is more akin to the type of analysis S&P, Moodys and others typically undertake on borrowers’ projects. It has been designed for pension funds, investment banks, and insurance companies and is well suited to deals from 50M USD upwards. In this analysis, we utilise all 280 data points in the Silta Score tool to deliver an investment-grade DD report for institutions.

Due diligence on solar projects

Silta’s due diligence is in full swing on the first three solar projects. These three projects are a fantastic start to testing our three types of Silta Scoring due diligence methodology. Once due diligence has been completed, we aim to fund these projects via OTC deals, assuming their Silta Score is acceptable to the financier.

Tokenomics

The team has constantly been refining the Silta tokenomics. The Silta token is of paramount importance if we are to scale, as it allows us to access a global pool of transaction advisors qualified for performing due diligence. After the Silta token has been launched, anybody wishing to use the protocol must first stake the token. This applies to borrowers, financing partners, Due Diligence Advisors, Silta Scoring Committee and Project Monitoring Officers.

Next steps

The current market conditions have brought rise to the need for Silta to re-evaluate its strategy. DeFi protocols are all struggling to fill loan pools. Many share the same story: liquidity providers are leaving, and those that remain want very short loan tenors of 3–6 months and double-digit interest rates. Furthermore, they have defaults happening left, right and centre because little or no due diligence was undertaken on borrowers.

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Ben Sheppard

Co-founder of Silta Finance — bridging DeFi and TradFi to impactful infrastructure. Innovator, change-maker and father.