DeBond continues to make inroads in the decentralized finance industry. Its approach to decentralizing bonds through blockchain technology and smart contracts resulted in a $500,000 seed funding round. Various prominent backers and investors see merit in this approach, paving the way for broader financial access to everyone.
DeBond Keeps Making Inroads
The seed funding round for DeBond shows the overall demand for decentralizing traditional financial instruments. Bonds have been an essential part of the finance industry for decades, yet their core model has not changed. More importantly, bonds are only accessible to qualified investors and governments, creating a fractured landscape. With the help of decentralized technology, those fractures can now be mended and the appeal of bond vehicles can be expanded upon.
The recent seed funding round for DeBond – a $500,000 financial injection – puts the company’s valuation at $12.5 million. Seed round investors include Bixin Ventures, Lotus Capital, Wave Capital, Hotlabs, etc. The vision of decentralized bonds and collateralized debt obligations change the playing field for consumers and institutions exploring new opportunities in the finance industry.
The approach to these new financial vehicles is made possible through the ERC-3475 token standard. It introduces independent functions to read, transfer a collection of bonds, and have bonds redeemable from the bond issuer. That latter option will only be possible if specific conditions have been met. Leveraging blockchain technology for the bonds industry introduces new opportunities that would otherwise not be accessible.
An extra benefit of ERC-3475 is how it enhances the traditional liquidity provider tokens on the Ethereum blockchain. More specifically, it can replace the ERC-20 token standard by supporting additional data and logic forms. As a result, a more advanced version of LP tokens can prove beneficial to DeFi-oriented projects and services and help enhance reward systems or even introduce new ideas.
A Big Step For Decentralized Finance
The vision by DeBond can bring more use cases for bonds and derivatives to the table. Those are two focal points for the team and two crucial investment vehicles in traditional finance that, while making some inroads in crypto, remain largely unexplored in the industry. The strong support by these backers and investors confirms exploring these options may prove worthwhile.
DeBond intends to enhance the overall appeal of yield farming in the DeFi industry. The current landscape requires users to own specific crypto assets to engage in yield farming on a particular chain. However, decentralized bonds may change that narrative for the better. They can also pave the way for a more complex economic system centered around ERC-2475 as a token standard.