Businesses have long used loans to obtain capital in order to grow and expand their businesses. The popularity of low-interest borrowing caused the bond market to reach a staggering $130 trillion. To make matters worse, banks all over the globe increased their interest rates. They also tightened the rules to prevent startups from accessing the much-needed funds.

They haven’t been slow to act. Just in the USA, alone 20 million people were laid off due to failing businesses trying to deal with the effects of the crisis. But, even in difficult times there are new opportunities. In 2021 the rapid growth of Decentralized Finance (DeFi), opened up new avenues for financial assistance. Decentralized lending protocols are free from credit checks or lengthy approval processes and can allow businesses to borrow at favorable rates and keep growing. BondAppetit seeks to use the technology to create a complete solution that addresses the need for low-cost capital.

Although the DeFi market is very rewarding, it can also be risky. Crypto market volatility is a hallmark. Market players within the lending market use the practice to demand overcollaterization or backing that exceeds the amount of the loan. Business owners will be able to liquidate the capital provided at short notice. This makes it difficult for them to agree on terms.

BondAppetit: What’s it all about?

BondAppetit was founded in 2021. Its goal is to connect the crypto and bonds worlds and provide short-term liquidity and corporate loans for businesses, large and small.

USDap: What does it mean?

BondAppetit provides loans in USDap. USDap can be described as a native token that is supported by yield-generating global bonds. Bonds are held in licensed custodians, so funds can be accessed at any moment by anyone. BondAppetit takes collateral from real assets. It allows potential borrowers to get better terms and negotiates with the company.

What does BAG mean?

When the native governance token BAG holders decide to make an offer, the bonds can be sold. Voting determines the outcome. The governance proposal can be initiated by any holder who has more than one million BAG. BondAppetit plans to distribute 100 million tokens in the next 2 years.

Current Results

BondAppetit was founded in order to obtain enough bonds that it can support the native token. Currently, bonds of Nexa Resources, Ecopetrol, Delta Air Lines (NYSE:), Ford Motor (NYSE:), Xerox (NASDAQ:) Holdings, American Airlines (NASDAQ:) are part of the startup’s portfolio.

Ten million BAG tokens have already been distributed among BondAppetit’s liquidity providers. To transform the startup into a DAO the management board will offer another 65% to members of the public. To earn an 8% annual percentage yield from USDap bonds, BAG holders will be able to stake their token for 3-12 months.

Digital Fortress Investment Fund has made $350,000 in BondAppetit’s first round of investments.

Future Plans

BondAppetit is a partnership platform that locks partnerships with financial institutions and established crypto players to promote the mass adoption of USDap tokens. EAST.Finance was the first partner. It is a company that Waves crypto-ecosystem has incorporated. With the goal of acquiring more USDapp collateral and raising liquidity, the marketing team intends to make more agreements and to start a few marketing activities in 2022. These goals are essential to validate and upgrade the protocol, if needed, as well as build the most effective solution in the market.

BondAppetit currently uses blockchain, and also has small pools of Waves and Binance. However, the development team is already working on the startup’s own blockchain and L2 solutions.

A grant program is also being considered. It is basically a bug bounty program and content creation program that aims to draw developers who are interested in finding vulnerabilities in the ecosystem.

Wrapping up

The solution to global problems of low capital and rising prices is DeFi. Businesses will be able to borrow with lending protocols. This can lead to expansion and growth. Many are afraid to make the jump into crypto markets because they remain volatile. BondAppetit makes crypto-phobia disappear.

BondAppetit is made up of experts with years of experience in finance and technology who recognize the value of stability even during turbulent times. SMBs can borrow at low risk thanks to the lending protocol created by the team.

It is already scaleable, so the only task of the team is to increase the USDap. BondAppetit, which connects crypto and bonds, will provide cheap capital to all entities of any size.

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