Normally if you are holding crypto and you want to switch to stocks you have to sell your crypto for fiat to be able to buy stocks. Bridge Finance allows you to get into stock positions without selling your crypto assets. This way you compound or hedge your gains in crypto with those that are happening in the stock market - or vice versa. For a small fee and a few easy steps, you are able to enjoy gains in both markets, or hedge one market asset using the other.
Decentralized finance meets financial derivatives. Equity Swaps have only existed for legacy markets before, allowing parties to enter into a contract to swap future financial gains in any asset or stock, without actually swapping the assets or transferring ownership. Using our dApp and protocol, users are able to effortlessly create Equity Swap contracts for their stocks in real time. With a few clicks Crypto Traders can then enter/buy the contracts they choose, to commence the trade instantly.
Bridge Finance's dApp runs on the Ethereum blockchain, using smart contracts to create the Equity Swaps agreements between the stock owner and the crypto trader. The platform's backend is powered by the Switch Protocol; as its engine to be able to create, track, manage and also settle contracts on maturity autonomously and securely. Its designed to easily work with or migrate to other blockchain platforms to avoid congestion and high gas fees on the Ethereum blockchain.
How it works
Mike, a stock owner, is uneasy about his TLSA stock, it has posted 4X gains already this year and he doubts it will continue to post more gains this year. He decides to Hedge by putting up his TLSA stock in a Equity Swap deal on our platform and creates the contract. The TSLA equity swap contract is then published/listed on our platform to the attention of all crypto traders/ potential takers.
Lucy is a crypto trader, she's been looking to get into TLSA stocks. She owns a strong portfolio of crypto tokens that she knows will do well this year and doesn't want to sell them and miss out. She sees the TLSA equity swap contract and decides to trigger it. She deposits her tokens as collateral and the trade begins to run. During its tenure, she and Mike can both monitor the trade, with gains updated in real time based on current stock prices.
On contract maturity or tenure expiry, the switch protocol pulls up the deal and calculates how to handle settlement. If the stock price went up by 10% then the stock owner, Mike, should transfer those gains to Lucy (since the stock value is now more than the fixed price agreed in the equity swap). If it lost 10% then Lucy has to compensate Mike that 10% value (to maintain the fixed stock price - to Mike, agreed in the equity swap). Knowing balances due for each party's wallet, settlement is then handed over to the smart contract, to transfer tokens.
Taking Decentralized Finance up a level - Unlocking More Freedom
For a long time it has been a matter of choosing to trade one market, or the other, never being able to trade both at the same time - Until Bridge Finance came along. Now you can unlock liquidity from your stocks to enter into crypto currencies. Vice-versa, unlock liquidity from your crypto currency holdings to enter into the stock market. All without sacrificing one market for the other.
BFR will be the native token on the platform, primarily facilitating exchange of value in equity swap: floating leg and equity leg payments or settlement. Retail stock brokers or app providers, will issue their clients securities based loans (SBLs) in the form of BFR tokens at that day’s rate. It will also allow the stock trader to settle broker fees and charges if they made a profit without taking any value from their stocks. Any party participating in an equity swap deal needs to stake the BFR tokens equivalent to the notional as collateral.
Users can stake BFR token in order to participate in liquidity mining. You also earn staking rewards in addition, just for locking up your tokens. Details on staking pools and liquidity mining pools will be announced later closer to Beta Launch. To encourage stock variety instead of a limited range of stocks, we will incentivize contract creators who bring stocks that are new or scarce to the platform. Half of the maker's fees will go to brokers as incentive for enabling contract creation for their clients.
Our multi asset collateral lending service will allow all users to bring their tokens or coins and access loans. You can bring other ERC20 tokens and get BFR tokens to buy into Equity Swap contracts. Or vice versa, bring BFR tokens and get other ERC20 tokens.
Like any markets you should know what you are doing or at least copy from the best. Leaderboard & ThotBox allows you to copy from the best as well as discuss stocks or ideas with other traders. This will serve as a educational platform to minimize risk for novice traders, in either market.
Who it will be offered to/ Target Market:
CEO & Co-Founder.
Director and co-founder at E-Solutions with 18+ years experience in formulating, developing and launching Fintech and Digital Payment Systems. Successfully implemented large projects for large private and public sector companies as a Software Engineer, Consultant, Team Leader, Architect and Project Manager in various sectors like banking, finance, insurance, retail, telecommunications, utilities and ICT security. Msc degree in Computer Science, IBM and Java certified
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