Depository Network DEPO Proof-of-Concept is HERE

depo prototype clients

After successful completion of a Seed Round for $250 000, we have everything in place to proceed with our roadmap.

Depository Network DEPO was introduced to the public on May 18 2018. For the short time being, we received some valuable feedback from the industry. This, in addition to the support from private investors from banking and financial industries has given us the strength and resources to further develop our project into first prototype, our Proof-of-Concept.

What is DEPO?

Depository Network DEPO is a digital platform, which lenders worldwide can use to create their own depositories and start accepting blockchain assets as a collateral for loans.

What is collateral?

The simplest example of collateral is mortgage for house. Under the same principle DEPO allows the token to be locked in multisignature wallet which is under the control of DEPO. Neither the creditor nor the debtor could touch the token without an approval by DEPO. Of course, all related loan conditions are set in the smart contract.

DEPO prototype has 3 login functionalities: for lending institutions, for their clients (borrowers) and for arbiters.

Let’s see how this works from the perspective of the borrower:

A borrower goes into his/her trusted money lending institution and asks for a loan, backed by blockchain assets, such as cryptocurrency. The money-lending institution offers a fiat money loan to the client. The lender creates an account for this client, with its ID, which must be used by the borrower to enter the platform and deposit the collateral.

There is a new contract created for each loan agreement with a client. The lender can use this dashboard to unlock the deposit or request additional collateral. The status of each transaction is also visible.

Once the borrower logs in, he/she can see the requested amount of collateral as per contract. The client needs to deposit their asset into the account, for the smart contract to be activated.

Once the collateral is successfully deposited, the status will be changed to Deposit locked and the lender will receive confirmation for the deposit.

The contract is activated and the lender can now set an arbiter for the contract in case of disputes. The arbiter receives notification every time a new contract has been assigned to him.

The arbiter will be involved in case of disputes in the following cases:

– if the borrower doesn’t pay for the loan

– if the market price of the collateral drops below certain predefined level

– if the lender decides to change loan conditions

– in case the borrower disagrees with the request of additional collateral

The role of the arbiter is to be an independent 3rd party. He makes sure that the borrower keeps ownership of his/her assets during the entire loan period. He also ensures a correct and lawful order execution in case of collateral liquidation. During a dispute, both borrower and lender rights are being actively protected in the most objective way possible. What’s more, the lender has the security of the value of asset due to the insurance provided by DEPO.

Upon successful repayment of the loan by the borrower, the bank can release the collateral and the client will have their assets moved to his own wallet.

How is DEPO different?  

DEPO aims to provide through its depository infrastructure an integrated set of services to P2P lending platforms, banks, credit institutions and borrowers. The platform shall provide not only independent multisignature wallet technology for safeguarding the collateral, but also secure and independent enforcement procedure in case of non-performance by the debtor, giving equal protection of creditors’ and debtors’ rights. Last but not least it shall secure arbiter interaction for fast and legitimate case settlement.

The advantages of DEPO were also revealed by The Merkle confirming that Depository Network could be viewed as the natural evolution away from projects like SALT and ETHLend, as it can provide a truly secure, decentralized crypto asset collateral system, upon which ecosystem of platforms and financial services could be build and provided.

Do you know any other platform like this? The answer is simple – NO.

DEPO is not a short-term project. It provides a solution for unlocking market cap of billions of USD in cryptocurrency alone. But what’s more, it protects the interests and the rights of both lending institutions and customers.

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