Make your digital assets fly! The market value of cryptocurrencies represented by Bitcoin has been expanding in the past years. According to statistics from Coinmarketcap.com, the global market capitalization of digital currency has reached USD 600 billion as of December 2017. As more and more countries start to recognize digital assets and blockchain technology worldwide, the use of digital assets will continue to expand. Digital assets are expected to become one of humans’ largest assets in the near future, and everyone has the opportunity to become a digital asset holder and investor. This will be a revolutionary change in the history of human currency.
Under this environment, many people expect to make their digital assets safer, more liquid and at the same time seeking larger Return on Investments (ROI). In our daily life, many people obtain funds through banks, credit cards, and online loan platforms to increase the circulation of their funds. In the blockchain era, there is a new way to boost asset liquidity and improve return on assets. That solution is DAGT.
What is DAGT project?
DAGT, short for the Digital Assets Guarantee Token (www.dagt.io), is a digital asset collateralization credit platform built on Ethereum and smart contract technologies. Founded by Singapore’s non-profit Foundation (GRANDDREAM), DAGT aims to utilize blockchain technology to build a transparent, efficient and distributed guarantee system which makes digital assets flow quickly. Throughout the ecosystem, credit users can pay for credit service fees by using the “DAGT” or other digital assets, so as to obtain the financial services provided by the financial institutions that the DAGT project cooperates with.
Who does DAGT serve?
DAGT provides blockchain and financial services to three categories of people: (1) C-side digital investors; (2) DAGT token holders; (3) B-side compliant financial lending institutions.
The process that C-side digital asset investors have to complete on the DAGT platform to obtain liquidity from their digital assets:
STEP 1. Credit application
Register and apply for loan credit qualifications
STEP 2. Credit information
Users should enter their credit information
STEP 3. Locked smart contract
Send digital assets to wallets based on smart contract
SETP 4. The letter of credit created and loan approved
DAGT creates the letter of credit, and B-side compliant lending institutions approve loans. Loan institutions having cooperation with DAGT will distribute loans to banks in accordance with credit qualifications and basic information.
First, the advantages for C-side digital investors:
- Increase the liquidity of funds. Pledging a certain amount of digital assets can obtain funds from B-side compliance loan agencies and increase the liquidity of individual funds and value of digital assets which are used for investment, financial management, daily consumption or travel.
- Increase the security of digital assets. “Blockchain +”, as the underlying technical structure of fintech, realizes the centralization of credit verification, transaction data that cannot be tampered with, capital circulation as well as financial transactions and transparent risk m
- Increase the long-term stability and security of digital assets (avoid forced close positions from exchanges). When using leverage to invest in digital exchanges, you may be forced to close your position because of a substantial shock in the prices of your digital assets, non-fulfillment of your additional bond obligations, irregularities in policies, or temporary changes in trading rules. The DAGT platform can help you avoid these losses. DAGT provides fund services to digital asset investors with a lower digital asset/liability ratio, boosting investor confidence in the risk of large market price shocks. In the meantime, according to investors’ needs, DAGT can promptly carry out currency-taking operations to ensure the stability and security of long-term digital asset holdings.
Second, the advantages for DAGT token holders:
- Value-added benefits: When DAGT is listed on exchanges, you can get multiple value-added benefits.
- Dividend income: In the DAGT project operation process, dividend income will be distributed according to a certain proportion and time.
- Fund services: DAGT tokens are valuable in their own right. Users pay for credit facilities through the use of DAGT tokens for funding services provided by compliant financial institutions in cooperation with the DAGT project. (There are already several CFL partners as of now).
Third, the advantages of a B-side lending CFO:
- Quality borrower: At present, the digital currency in circulation has reached as high as USD 200 billion and a large number of individuals are holding cryptocurrencies. For banks, small loan companies and online loan institutions, trust relations and strict information review mechanisms are needed to establish credibility with borrowers, such as reviews of identity information, academic information, credit information, social relations, personal housing and vehicle information. However, the basis of trust is not solid. In the blockchain, you do not need to trust a counterparty. When borrowers need funding services, they can verify with DAGT and get a credit certificate, which can be verified by any lender. Using the features of digital assets and blockchain technology, DAGT provides lenders with quality borrowers and enhanced risk control systems. When the borrower defaults, smart contract will be triggered to protect the lender.
- Increase the rate of return. Research shows that digital asset holders generally have the characteristics of pursuing higher returns with higher risk. DAGT will screen the B-side compliance lenders for high-quality borrowers who can afford higher interest rates.
- The security of repayment. DAGT has opened up API interfaces with several of the world’s leading digital asset exchanges and utilizes blockchain’s decentralized and non-tamper features to enable rapid stop-loss even in the face of extreme risks. In addition, DAGT uses smart contracts to set up a security reserve and deposit when working with compliance lending financial institutions. When the pledged digital asset value cannot cover the principal and interest, DAGT will initiate the smart contract to repay with a two-tiered deposit.
According to the research report published by Morgan Stanley, the global online lending market will reach USD 150 billion in total by 2020. The major countries include the United States, Britain and China. At the same time, with the maturity and development of blockchain technology, digital assets are becoming an asset allocation approach for individuals and organizations. Utilizing blockchain technology featured with decentralization, tamper proofing and transparency, digital assets are applied as a collateral to the lending market to establish a solid trust relationship between C-side digital asset holders and B-side compliance financial institutions. This is a very large and promising market which DAGT is working on. DAGT tokens holders have the opportunity to yield significant benefits through both online trading and long-term holding.
The DAGT platform plans to launch a private and public ICO soon, please stay tuned. Should you have interest in it, please feel free to contact us: firstname.lastname@example.org.
For more details, please visit DAGT’s official website and keep following our social media platforms.
Official website: http://www.dagt.io
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