Loans have always been a popular way among businesses to acquire capital for growth and expansion. As a result, the popularity of cheap borrowing led the global bond market value surge to a whopping $130 trillion. However, just like the 2008 financial crisis, the COVID-19 pandemic led banks worldwide to raise their interest rates and tighten the rules, effectively cutting off startups and enterprises from so much needed funds.
The consequences have not waited long. In the US alone, 20 million people lost their jobs amid failing businesses struggling to overcome the implications caused by the health crisis. Yet, hard times bring new opportunities. The rapid development of decentralized finance (DeFi) in 2021 paved the path to a new type of financial support tool. With no dependency on credit checks and lengthy approval procedures, decentralized lending protocols have the potential to let businesses borrow at a favorable level and continue operating and growing. BondAppetit aims to utilize the technology and build an all-around solution to answer the demand for cheap capital.
While DeFi space is highly rewarding, it remains risky. The crypto market is notorious for being volatile, meaning most market players in the lending niche utilize the practice of demanding overcollaterization and backing greater than the loan itself. For business owners, this means that the provided capital can be liquidated at very short notice, making them think twice before agreeing to terms.
What Is BondAppetit
What is USDap
What is BAG
Current ResultsDALF
Ten million BAG tokens have already been distributed among BondAppetit’s liquidity providers. The management board will give out another 65% to the community in an effort to transform the startup into DAO. BAG holders can stake their token over a 3-12 months period to earn 8% APY from bonds backing USDap.
Digital Fortress Investment fund has invested $350,000 into BondAppetit during the first investment round.
Future Plans
Currently, BondAppetit utilizes Ethereum blockchain and has small pools on Binance and Waves. However, the development team is already working on the startup’s own blockchain and L2 solutions.
The grant program is also in the works. In a nutshell, it is a bug bounty and content creation program aiming to attract developers to find vulnerabilities within the ecosystem and creators interested in promoting BondAppetit in exchange for BAG tokens.
Wrapping Up
BondAppetit team is made of professionals with decades of experience in the finance and technology fields who understand the importance of stability during uncertain times. The lending protocol developed by the team allows SMBs to borrow with low risk.
The solution is already scalable, and the main task for the team is to raise the supply of USDap. By connecting bonds and crypto, BondAppetit will make cheap capital available to any entity of any size.