Position P2P Bond
Position P2P Bonds can be used as a financial instrument, allowing users to borrow assets from other users by issuing Bonds. They’re also integrated on-chain and powered by smart contracts like Position Bonds.
Issuers can use P2P Bonds to exchange and earn fixed income from bond interest. Individuals, companies, and projects can raise funds for their businesses and projects by simply locking their assets (tokens, NFTs) as collateral.
The issuer will have to mortgage a sufficient amount to ensure the holder does not suffer a loss when holding the bond.
- No process required
No process and approval are required. Easy to raise funds with only 1 step. Issuing P2P bonds is the simplest fund mobilization with flexible loan terms and interest rates.
- Fast and easy fundraising
P2P Bonds allow issuers to raise funds faster and easier since it is fully on-chain with no intermediaries and operated in a fully decentralized, trustless, and transparent system powered by smart contracts.
- Safe and stable earning
Holders can claim earnings for P2P Bond safely and stably. Users can choose to hold bonds according to their attractiveness (price, YTM, duration,.. etc.)
There are 4 status phases of Position P2P Bond:
- Pending Phase
In this first phase, bonds are pending to be approved and set up. Whether you are an individual, project or company seeking financing and investment, you can issue your own bonds easily on Position Exchange by applying and providing collateral.
- On-sale Phase
Position Bonds implementation powered by smart contracts. Bonds are ready to be purchased.
- Active Phase
Bonds can only be active once sold out or after the "On-sale" phase is over. Bondholders can now Exchange or Stake your bonds which are available on pools with fixed APR.
- Maturity Phase
Once the Bond reaches its maturity date, the issuer will pay back the investment plus interest. Payment to investors when bonds reach maturity will be ensured and guaranteed by Position Exchange. Bond holders can claim back face assets at this point.
Bond can be liquidated in the on-sale phase or maturity if its LTV reaches 80% or users can no longer trade it on Bond Exchange