DeFi Platform Bonded Finance Aims To Unlock Untapped Altcoin Market Liquidity

Bonded Finance is building the next generation of financial instruments by aggregating the collective liquidity of thousands of underutilized cryptocurrencies, opening the door to billions of dollars of capital. The company is striving to solve some of the most prominent obstacles in the DeFi market, such as extremely limited borrowing mechanisms, miscalculated APY's, or the lack of liquidity for lesser-known assets. 

The team is led by Senior Partner Peter Aitken, who brings more than 20 years of experience as a board member and owner of Pharmacy Care Systems Ltd, and CEO Paul Mak, a seasoned entrepreneur with over 17 years of management and finance experience across Asia Pacific markets. 

Bonded Finance's Technology

Bonded Finance utilizes complex smart contracts and algorithms to group digital assets into a single index that manages them. It aims to leverage the capital locked inside illiquid altcoins by delegating it to something more productive and profitable. Paul Mak, CEO of Bonded Finance, knows the cryptocurrency market still has a lot to offer but requires some changes.

“The crypto market is a paradox because it's nascent and highly active with millions of micro-investors in a market that runs 24/7," he said. "To some degree this fosters innovation but the combination of immaturity and frenetic activity creates inefficiencies. Two inefficiencies are illiquidity and the breadth of distribution. Capital is spread across 700 exchanges and there are some 7000 projects vying for attention. With capital continually redistributing, start-ups are not garnering the support they need.”

BOND, which is an ERC-20 token, is utilized in a variety of products inside the Bonded Finance network to support liquidity and as collateral. It will additionally serve as the key to access the governance functionality once ready. 

Recently, Bonded conducted a successful $2.25 million private sale and announced an upcoming public IDO sale for November 15, which will take place on Dolomite. Bonded will offer 130,000,000 Bond Tokens for sale, which is 13% of the total supply. The sale will end on November 30 or when all the tokens are sold.  

Optimized Crypto Loans with Bonded Finance

The Bonded Finance team has created a new protocol called the Accelerated Crypto Loan (ACL), which enables a dynamic borrowing and lending market where interest rates differ by available assets. Borrowers and Lenders interact directly with the protocol cutting out the middleman. 

Lenders can easily connect their Metamask account on the Bonded platform and deposit assets directly into a liquidity pool. At the same time, a “collateral mapping system is maintained on the blockchain”. According to the official Litepaper of Bonded Finance: 

“On the basis of this mapping system, the smart contract accesses Supply-Demand matrices in order to calculate interest rates. The protocol primarily checks the "Interest Rate Number" via simple division: Times the asset is provided by A lender as Collateral/Times the asset is accepted by a borrower.”

Although Bonded already leverages the Ethereum network, it also utilizes price oracles thanks to Chainlink to further secure the network by sourcing prices from ten different exchanges to calculate borrowing capacity and collateral requirements. 

Roadmap

Bonded is working with an ambitious and fully-packed roadmap in 2020. The team is currently working on the QA/UAT testing and the LOC audit and deploy. The project will shortly enter the BLU SC public testing period by the end of November and aims to release the first version of the final product by the end of December. 

Bonded Finance is already working with well-known cryptocurrency projects like Matic Network to provide Matic supporters access to the ACL protocol and the entire suite of products offered by Bonded.

You can find out more about Bonded Finance by visiting Bonded Finance’s Website, Twitter, and by joining the Telegram. 

Disclaimer: the writer does not have a personal relationship with Bonded Finance. A company the writer is affiliated with is an investor in Bonded Finance. This relationship was not used to source insights for this article. Please consult your financial advisor before investing in or using any cryptocurrencies or cryptocurrency exchanges as both pose risk. This article is for educational purposes and does not constitute financial advice.