Polytrade (TRADE) is a DeFi platform that connects investors with small and medium-sized businesses for blockchain-based trade finance solutions.

Tokenization allows for trading various assets, transforming physical and intangible items into digital tokens on a blockchain. This includes invoices, which can be converted into tokens, enabling secure, efficient, and transparent trading. Tokenized invoices offer liquidity and access to a broader range of investors, providing businesses with faster access to working capital. The trading process becomes streamlined, reducing costs and risks associated with traditional methods. Polytrade (TRADE) is a platform that leverages this technology to connect investors with small and medium-sized businesses for blockchain-based trade finance.

What is Polytrade (TRADE)?

Polytrade (TRADE) was launched in 2022 to revolutionize financial technology for users, investors, lenders, and borrowers. Polytrade aims to transform financial systems by leveraging blockchain technology and introducing more efficient and transparent processes. The journey began with the first tokenized invoice pool, leading to the creation of the ERC-6960 tokenization standard. This standard underpins Polytrade’s RWA Marketplace, where individuals and institutions can discover, invest in, and trade RWAs such as trade finance, equities, T-bills, structured finance, and real estate.

Polytrade stands out as one of the few native asset originators in decentralized finance (DeFi), providing sustainable yields and easy access to RWAs. In its first year, Polytrade tokenized over 200 invoices and funded close to $4 million in invoices. This success is backed by investors like Alpha Wave, Matrix Partners, and Polygon Ventures. The core team brings experience from J.P. Morgan, Soc Gen, PayU, Securrency, and Fantom, having advised on over $500 million in trade finance deals.

The history of Polytrade is rooted in Riqueza Capital, which was incorporated in Hong Kong in 2014. Riqueza expanded rapidly, opening offices in Singapore, India, and the UAE, and arranging significant trade finance deals, including $105 million in 2019. In 2020, Riqueza onboarded over 250 borrowers on its digital platform, Riqueza Factex, before Polytrade emerged from this foundation.

Polytrade’s roadmap began in January 2021 with the formulation of the platform idea. By February, the white paper was drafted, and the website was launched. Pre-ICO rounds and platform development phases followed, culminating in the launch of the mobile and web versions, the creation of the first liquidity pool, and the execution of the first transaction by July 2021. Media outlets like TechCrunch, CNBC, and the Economic Times have covered Polytrade, and CEO Piyush Gupta has received recognition and delivered keynotes, including a TEDx lecture. The platform is further strengthened by a council of experts from the RWA, traditional finance, blockchain, NFT, and DeFi sectors, aiming to shape the burgeoning RWA sector through Polytrade’s leadership.

How Does Polytrade Work? Marketplace and Smart Contracts

In a world where real-world assets (RWAs) operate in silos, Polytrade serves as the aggregator that brings them together. Recognizing the need for seamless access to tokenized RWAs, Polytrade’s marketplace is a global gateway, enabling investors to engage with a diverse range of tokenized assets, including T-bills, credit, stocks, real estate, commodities, collectibles, art, intellectual property, creator royalties, and luxury goods. These assets are brought together on a single platform, backed by and partnered with industry giants like Mastercard, Polygon, Alpha Wave, and Matrix Partners.

Polytrade’s marketplace is built on the RWA-focused ERC-6960 technology, which allows users to discover, trade, fractionalize, cross-chain bridge, and leverage RWAs. The marketplace categorizes assets into two main types: Discovery Assets and Secondary Assets.

Discovery Assets are accessible through seamless integration with leading protocols such as Uniswap, Balancer, and Opensea, or directly on the issuing protocol websites. Users can explore these assets, compare them, and engage in transactions effortlessly. Protocols with assets in discovery mode include Goldfinch, Americana, Unikura, Amber Island, Michelin, Courtyard.io, Dinari, and 4K.

Secondary Assets, on the other hand, are native to the Polytrade Marketplace and are listed using Polytrade’s ERC-6960 standard. This standard accommodates various token types, including ERC-20, ERC-721, and ERC-1155, by wrapping them. Protocols with assets in secondary mode include Aurus, Tiamonds, Courtyard.io, Blockbar, Raffles from Polytrade, Unikura, and other secondary assets listed by users. These assets provide a seamless trading experience within the Polytrade ecosystem.

The marketplace serves as a comprehensive platform, uniting a wide array of tokenized assets under one roof. Users can explore a vast selection of assets, compare different options, and engage in transactions, whether it be purchasing, selling, or simply browsing RWAs. The integration of various protocols and the categorization of assets into discovery and secondary types ensure that users have a streamlined experience, with access to a broad range of investment opportunities.

In conclusion, Polytrade’s marketplace offers a robust platform for tokenized asset trading, bringing together RWAs from multiple chains into a single, user-friendly interface. This comprehensive approach not only enhances accessibility but also supports the creation of a thriving secondary market for RWAs. As users navigate this marketplace, they encounter the foundational role of smart contracts in ensuring secure and efficient transactions. Smart contracts play a crucial role in automating processes, managing asset evaluation, borrower evaluation, and risk management, ultimately underpinning the entire Polytrade ecosystem.

Source: polytrade.finance

Smart Contracts

Smart contracts are a foundational component of the Polytrade platform. These self-executing contracts perform specific functions based on predefined triggering events, ensuring that no single party can alter the terms once they are set. This ensures transparency and trust among all parties involved—buyers, sellers, and investors. By automating the flow of funds and invoice-related information, smart contracts streamline the entire trade finance process.

One key aspect of Polytrade’s smart contracts is their ability to harness stablecoin liquidity. The platform aggregates funds from various investors into a combined liquidity pool, offering SMEs faster and cheaper access to trade finance. Unlike traditional peer-to-peer lending, where investor funds are matched with individual invoices, Polytrade’s approach allows investors to earn returns based on the time their assets are deployed while maintaining the flexibility to withdraw their funds at any time. This results in greater liquidity and security for investors, who can benefit from a unique investment opportunity that was previously accessible only to banks and financial institutions.

The smart contracts on the Polytrade platform also incorporate an in-built reward system using TRADE coins. After every successful transaction, all stakeholders receive TRADE coins as incentives. This reward system is governed by a set of rules managed on a fully distributed ledger. Professional validators verify all invoices, and funds are released only after invoice verification, ensuring high security and reliability.

Smart contracts facilitate the transparency of events along the entire supply chain. When a borrower uploads invoice-related information, the platform deploys a customized smart contract that releases funds automatically once specific conditions are met. This includes the verification of invoices by validators, ensuring that funds are only disbursed when the terms of the smart contract are fulfilled. All relevant information, such as invoice verification status, advances made, and payments received, is stored on the blockchain, making it tamper-proof and easily accessible to authorized parties.

Automation and ease of use are significant advantages of Polytrade’s smart contracts. Unlike manual processes, which are often inefficient and time-consuming, the platform automates receivables financing, providing unparalleled convenience. For example, once an invoice is validated, the smart contract automatically disburses funds to the seller. Automated notifications keep all parties informed of relevant events, such as invoice registration and validation status, ensuring that everyone is up-to-date in real-time. This level of automation not only streamlines the process but also reduces the risk of errors and fraud.

In conclusion, smart contracts are essential to Polytrade’s functionality, offering transparency, security, and efficiency. They facilitate smooth and automated transactions within the marketplace, ensuring that funds and information flow seamlessly among all parties involved.

Source: polytrade whitepaper

Polytrade Use Cases

Polytrade offers a range of use cases that leverage blockchain technology to streamline trade finance, provide liquidity, and enhance transparency and security in transactions. Here are some of the primary use cases:

• SME Financing: Small and medium-sized enterprises (SMEs) often struggle with cash flow issues due to delayed invoice payments. Polytrade provides these businesses with immediate liquidity by tokenizing their invoices and enabling them to secure financing against these tokenized assets. This allows SMEs to maintain smooth operations without waiting for long payment cycles.
• Investor Opportunities: Polytrade opens up unique investment opportunities for individuals and institutions. Investors can participate in a diversified portfolio of tokenized real-world assets, including trade finance, equities, T-bills, and real estate. By contributing to the liquidity pool, investors earn attractive returns while benefiting from the security and transparency of blockchain technology.
• Cross-Border Trade: Traditional cross-border trade finance involves significant paperwork and lengthy verification processes, often resulting in delays and increased costs. Polytrade simplifies cross-border transactions by utilizing smart contracts that automate and expedite the verification and funding processes. This reduces friction and enhances efficiency in international trade.
• Risk Management: The platform’s use of smart contracts and blockchain technology ensures that all transactions are transparent and tamper-proof. This significantly reduces the risk of fraud and default. The automated verification process and use of stablecoins also mitigate risks associated with currency fluctuations and geopolitical instability, providing a secure environment for trade finance.

Polytrade’s use of blockchain technology provides practical solutions for SMEs seeking financing, investors looking for secure opportunities, and businesses engaged in cross-border trade. By offering automated, transparent, and efficient financial services, Polytrade enhances the overall ecosystem of trade finance.

What is the TRADE Coin?

TRADE is Polytrade’s native token for rewards, transactions, and governance. Its maximum supply is capped at 100 million units, of which 36.5 million (36.50%) are already in circulation (May 2024).

TRADE is the native token of the Polytrade platform, designed to facilitate and enhance the trust between parties involved in receivables financing. Created on a public ledger, TRADE Coins serve as the primary payment instrument within the ecosystem. One of their main functions is to provide access to the platform for sellers. Sellers need to hold a certain amount of TRADE Coins to access the platform, with their financing limit determined as a multiple of the value of TRADE Coins they hold. For example, holding $1,000 worth of TRADE Coins allows a seller to access a financing limit of $100,000. This paid access ensures that only genuine sellers register on the platform.

TRADE Coins also reward platform users for their participation and good behavior. Sellers, buyers, investors, validators, and financiers earn TRADE Coins for successful transactions and timely payments. This system boosts platform usage and increases trust among users. For instance, buyers who make timely payments and sellers who complete transactions successfully are rewarded, enhancing their creditworthiness. Validators are also incentivized with TRADE Coins for high-quality checks, providing an additional layer of trust and reliability.

The utility of TRADE Coins extends beyond access and rewards. They play a crucial role in governance, allowing users to participate in decision-making processes related to the protocol. Users who stake higher amounts of TRADE Coins have greater influence over governance decisions. TRADE Coins also enable protocol incentivization, allowing users to earn rewards and contribute to the platform’s development. Additionally, liquidity providers can stake TRADE Coins to earn rewards, thus securing the network.

Source: stake.polytrade.app

TRADE Coins are used as a settlement instrument in various bridges that share liquidity with other sidechains and mainnets. This functionality facilitates seamless transactions across different blockchain networks, enhancing the overall efficiency of the platform.

TRADE Coin is integral to the Polytrade platform, promoting trust, incentivizing participation, and facilitating governance and cross-chain liquidity. As the platform grows and gains traction, TRADE Coin is poised to become a significant cryptocurrency with its own market.

Polytrade’s Main Features

Polytrade offers a range of innovative features designed to streamline and enhance the receivables financing process through blockchain technology. Central to its functionality is the tokenization of invoices. Companies can convert their invoices into non-fungible tokens (NFTs), ensuring each invoice is unique and easily distinguishable on the blockchain. This process allows real-world invoices to be transformed into on-chain assets, making them more secure and easier to manage. NFTs are particularly suitable for this purpose because each invoice is distinct and requires individual treatment.

The platform enables the paying of invoices through yield farming. Buyers and sellers can engage with Polytrade to manage invoice payments. Buyers can build credit with Polytrade, allowing them to delay payments while sellers receive immediate funds from Polytrade’s liquidity pool. This setup provides liquidity providers with opportunities to earn interest in stablecoins and TRADE tokens, making Polytrade an ideal platform for those looking to generate returns on their crypto assets. The interest rates vary depending on the specific invoice and market conditions.

Polytrade also automates the receivables financing process, providing unparalleled ease of use. Smart contracts on the platform ensure that once an invoice is validated, the agreed amount is automatically disbursed. This automation reduces inefficiencies and errors common in manual processes. Automated notifications keep all parties informed of relevant events, such as invoice registration and validation status, ensuring real-time updates and transparency.

Another significant advantage is the ability to update information in real time. Authorized users can update digital invoices at any time, eliminating the need for physical updates and reducing the risk of errors. The platform also lowers the risk of manipulation and fraud by storing information in a decentralized public ledger. Any attempt to alter the invoice can be easily detected and rejected by other stakeholders, ensuring the authenticity of each invoice.

Polytrade ensures seamless verification of invoices, automating the process and reducing the need for manual checks. Professional validators verify every invoice on the platform, and the buyer’s acknowledgment of delivery is recorded on the digital ledger. Confidentiality and privacy are maintained as sellers control access to invoice information, which is secured through cryptographic systems.

In conclusion, Polytrade’s features address major challenges in the receivables financing ecosystem. The platform provides superior access to liquidity, automates processes, enhances security, and increases transparency, offering significant benefits to all stakeholders involved.

Polytrade’s Main Products

Polytrade offers innovative financial solutions to enhance user engagement and facilitate seamless transactions within its ecosystem. Below, we explore the key products: Loyalty Portal, Reflections, Lender V2, and Staking.

Loyalty Portal

The Loyalty Portal incentivizes users by rewarding their participation in the marketplace. Users collect XP by performing eligible actions, such as buying or selling assets. The XP collected can be boosted through badges and multipliers, enhancing the overall experience. For example, certain badges might double or triple the XP earned from marketplace actions. Phase 2 introduces Secret XP, granting additional rewards to early access users. This dynamic system encourages continuous engagement and competition, making the platform more interactive and rewarding.

Reflections

Polytrade Reflections is an exclusive collection of 999 master keys that unlocks access to future on-chain Real-World Assets (RWAs). Holders of Reflections gain continuous rewards and shares of upcoming airdrops. This limited access is available only through the portal and to select partner communities. Reflections holders enjoy premium features, unique deals, and early access to the Polytrade marketplace. This product bridges traditional assets with digital ownership, fostering a unified community of collectors, investors, and creators, all aiming to revolutionize the RWA sector.

Lender V2

Lender V2 is designed to provide fast, affordable capital to small businesses while offering stable yields to investors. The platform employs smart contracts to manage the lending pool, ensuring secure and efficient transactions. Lenders receive T-Stable tokens equivalent to their supplied capital, which can be redeemed for USDC at any time. The system includes modular components like RewardManager, Verification, and Strategy, which are adaptable to meet evolving needs. This structure guarantees flexibility and scalability, making Lender V2 a robust solution for both borrowers and investors.

Staking

The Staking program allows users to earn rewards by staking their $TRADE tokens on the Polygon PoS network. The program is designed for flexibility, with no maximum limit on staked tokens and no lock-in periods. Users can stake and withdraw their tokens at any time, maintaining full control over their assets. The rewards system adjusts dynamically based on the pool size, ensuring fair distribution. Participants can monitor their APR and rewards via the dashboard, making managing and optimizing their staking activities easy.

Polytrade’s suite of products—Loyalty Portal, Reflections, Lender V2, and Staking—offers comprehensive solutions that enhance user engagement, provide financial opportunities, and integrate real-world assets with digital platforms. Each product is designed to foster growth and innovation within the Polytrade ecosystem.

Is TRADE a Good Investment?

TRADE exposes real-world assets (RWAs) on the blockchain, providing transparency, security, and liquidity. Polytrade’s innovative approach to tokenizing invoices allows for seamless financing of receivables, making it attractive for investors and SMEs. However, potential investors should consider the uncertainty of future regulations, which could impact the platform’s operations and the broader crypto market. While the technology and concept are promising, it is essential to stay informed about regulatory developments that may affect the viability and growth of such investments.

How to Own TRADE?

To own TRADE, you can use the services of a centralized crypto exchange. Start by creating a Gate.io account and get it verified and funded. Then, you are ready to go through the steps to buy TRADE.

News on Polytrade

According to what the Polytrade team announced this year, Polytrade has partnered with Credora to integrate institutional-grade credit ratings into its tokenized RWA marketplace. This collaboration enhances transparency and investor confidence in tokenized real-world assets like invoices, loans, and collectibles. Credora’s advanced credit reports and AI-driven assessments provide valuable insights for investors, improving due diligence. This partnership aims to attract a wider range of institutional investors and promote mainstream adoption of tokenized RWAs, significantly boosting trust and efficiency in the on-chain RWA ecosystem.

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