A new way of peer-peer financing!
DC Finance provides a marketplace for PDC holders, whereby PDC holders list their NFTs for financing from investors. Upon PDC NFT being sold in the finance marketplace, the seller receives the instant cash flow from the PDC after the deduction of implied interest rates and the buyer will receive the proceeds from the PDC.
- For Lenders. PDC Finance’s financing marketplace provides an alternative financing platform, where users present their PDCs for advance funding. PDC issued by good companies will be honored & pose a lesser credit risk. For example, MakerDAO/any web2 company issued a PDC to a consultant for DAI 10,000 payable in 60 days. The consultant can place this PDC for funding in the PDC Finance marketplace. For investors, the strength of the PDC issuer/payer is a more important factor than the PDC receiver/(consultant in this case). An investor can be certain that MakerDAO in this case will make the payment on the 60th day irrespective of the PDC receiver/consultant’s financial position. So the investor may finance this PDC at say 10% p.a. interest & PDC Finance marketplace securely handles the swapping of loans. This PDC financing has below salient features,
- Returns are in stable coin terms (as the PDCs are made in stablecoins in PDC Finance)
- Returns are not correlated to market performance or any protocol emissions i.e., irrespective of bear/bull market, the payer will make the payment at the maturity date, as these are all corporate post-dated payment commitments.
- For Borrowers