How Is Definder Disrupting Traditional Investment Methods?

WhiteBIT
Published 02 May 2023
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How Is Definder Disrupting Traditional Investment Methods?

Content

Main

  • DF Platform is a Peer-to-Peer blockchain-based platform for decentralized crowdfunding for businesses and real-economy assets with a crowdloan.
  • DF Platform is built on the BNB Chain network that supports smart contracts using the Proof-of-Staked-Authority (PoSA) consensus mechanism.
  • DNT is a native utility token of the DF Platform, used for voting and creating an insurance pool for decentralized crowdloan.
  • The main DF Platform benefits are unprecedented access to investments in real-economy assets and an insurance pool as a hedge against risks.

Introduction to the Definder Platform

DF Platform is the first in a line of Definder Network products. Definder’s Peer-to-Peer lending model is a blockchain-based platform for decentralized crowdfunding for businesses and real-economy assets with a crowdloan. DF Platform is an innovative cloud-based app that offers tokenization features to provide investors with broader opportunities and asset owners with liquidity.

Below you will find more about Definder’s crowdfunding model, its advantages, and future prospects.

Overview of the Definder’s crowdfunding model

There are three main elements of Definder’s crowdfunding model:

  1. Unique platform;
  2. Utility token — DNT;
  3. The funding process.

Let’s review them in more detail:

DF Platform

DF Platform is a meeting place for investors and businesses. The platform on the BNB Chain network that supports smart contracts using the Proof-of-Staked-Authority (PoSA) consensus mechanism. It uses advanced blockchain technology to provide fast, cheap, secure transactions and avoid excessive bureaucracy. Its mission is the facilitation and acceleration of funding transactions for real estate and other real-economy assets. The product is based on the principles of a Decentralized Autonomous Organization (DAO), where the community makes all decisions for a chosen project.

Along with a user-friendly platform, there is the DF Android-based mobile application with the full functionality of the web version. The iOS app is also in the final stages of development.

The company is working on the creation of its own blockchain. With Definder’s blockchain, the users will have complete control and customization over their investments, with the highest levels of privacy and security at the same time.

DNT

DNT is a native utility token of the DF Platform on the BNB Chain. It is used for voting and creating an insurance pool for decentralized crowdloan. Participation in the insurance pool occurs through staking. Users secure their assets in the protocol for the period they want to participate in the project. Each project has its insurance pool to protect the users from risks and increase revenue.

Definder generates revenue through listings and generously shares a portion of its profits with the community. Specifically, 10% of the profits are allocated to token holders as a form of reward.

There are two staking plans:

  • LP staking

LP staking is investing DNT paired with USDT BEP20 in a liquidity pool on the PancakeSwap exchange. The participants of the liquidity pool receive a percentage of each trade in the DNT/USDT pair on the PancakeSwap DEX and get rewarded for holding the LP tokens within 30 days.

  • Safe Staking

Safe Staking is low-risk staking that requires purchasing 200 USDT worth of DNT tokens on any DEX and holding them for at least 30 days to receive rewards.

Process of funding

The process of asset funding on the DF Platform is the following:

  • Voting:
  • The community selects aproject;
  • Users join the project workspace by making a donation in DNT tokens;
  • Members of the community indicate the contribution amount in stablecoins by users;
  • The voting ends once the project receives more than 50% of the target amount of project funding applications.
  • Funding:
  • The project owner declares funding rounds;
  • Funding the project by making a transaction in a stablecoin;
  • Forming an insurance pool in DNT tokens;
  • Monitoring the project’s progress and providing feedback.

Once the project is fully funded, the smart contract transfers coins from the personal account to the user’s wallet over six days.

Definder’s security measures

The platform uses the following security measures:

  • The multi-signature wallet for fundraising, with the second signature belonging to the foundation;
  • The insurance pool is formed to the extent of 5–15% from the crowdloan contribution amount and guarantees clients’ fund deposits;
  • The Supervisory Board is formed from the top 10 contributors, allowing the decentralization of the decision-making about further operations;
  • Communication channels to vote for the projects, elections of a controlling representative, and participation in other decision-making events.

Definder’s Peer-to-Peer lending model vs. Traditional investment methods

Let’s compare the traditional investment methods and Definder’s crowdfunding model.

Definder’s Peer-to-Peer lending model:

  • Blockchain-based platform for decentralized crowdfunding and Proof-of-Staked-Authority (PoSA) consensus mechanism;
  • Lower risk due to an insurance pool of up to 15% of the sum of the consolidated loan;
  • Lower minimum investment amount than traditional investment methods, making it more accessible to a wider range of investors;
  • Transparent and decentralized fundraising, which is built on the principles of DAO, where all decisions are made by the community of a chosen project.

Traditional investment methods:

  • Typically, involve investing in publicly traded assets through financial advisors or brokerage firms;
  • The risk depends on the investment option. The higher the potential return — the higher the risk;
  • Minimum investment amounts can vary, but as a rule, they require a significant initial investment;
  • Traditional investment methods are not decentralized. Investors do not participate in the decision-making process and can’t directly communicate with the companies they are investing in. The decision-making power is concentrated on a small group of individuals.

As a result, Definder’s model of crowdfunding benefits private investors and project owners. On the one hand, investors can contribute smaller amounts and receive profits from investments in real-world assets. At the same time, users are protected by an insurance fund that guarantees their contributions. In turn, businesses have no bureaucratic obstacles and can attract investment faster and more efficiently.

Advantages of Definder’s model

  • Easy access to investment projects in the real economy globally;
  • Insurance pool 5–15% of the sum of the consolidated loan;
  • Data security and maximum transparency of all blockchain-based transactions;
  • Lightning-fast settlements and low fees;
  • Reserved funds (30% of issuance) for further ecosystem development will support operational/development/marketing activities and be used for remuneration/motivation of management.

Prospects of the Definder Platform

The Definder platform is part of the promising field of cryptocurrency crowdfunding and crypto investment in real-economy assets and real estate. Thanks to the unique investment process, users avoid unnecessary bureaucracy and have their deposits guaranteed by the insurance pool. Thus, the DF Platform offers a distinctive experience compared to what investors encounter in traditional financial markets.

In the nearest future, Definder will conduct the smart contracts audit and switch to its own blockchain. This will make it even safer to use crowdloans or staking on the platform.

To attract new investors, Definder plans to expand the number of blockchain and real estate assets available for investment. And in order to make such investments even more accessible, Definder will release the iOS application soon.

To develop the project and increase liquidity, Definder lists the DNT token on popular centralized and decentralized exchanges.

Taken together, the project connects startup owners and retail investors. Using blockchain technologies allows to avoid unnecessary bureaucracy and lowers the entry point for investment. The success of this project may influence the further development of the DeFi industry and global cryptocurrency adoption.