Polytrade Finance — a blockchain-based trade finance platform that helps small businesses by funding their short-term financial needs (also, known as working capital requirements).
Key features of Polytrade Finance
Polytrade serves as a link between investors and businesses. This helps businesses to meet their short-term financial needs in a timely and efficient manner. It also gives them a viable, safe and secure investment opportunity.
Before moving to a blockchain-based platform, Polytrade was known as Riqueza Capital. The company was founded in 2014 in Hong Kong. By 2020, the company has funded the connection of 5,000 merchants and funded 250 of them. This amounted to $500 million in bills worldwide.
TRADE — the native utility token of the Polytrade platform. These tokens are used as the main payment and reward tool in the Polytrade ecosystem.
The use cases for TRADE tokens are as follows:
| 1. | Management of the Polytrade platform through verified holders. |
| 2. | Staking rewards. |
| 3. | Interest rates for sellers for staking TRADE tokens have been reduced. |
| 4. | Discounts on invoices for buyers if the settlement is made on the Polytrade platform. |
| 5. | TRADE token rewards for service providers for participating on the platform. |
To fill the gap in trade finance, it was necessary to attract the money supply to the industry. To do this, Polytrade has created an innovative ecosystem, receiving liquidity from Crypto Investors. Investors can contribute their unused cryptocurrencies to Polytrade. Because these investors provide liquidity to the platform, they are known as liquidity providers. Polytrade converts these crypto assets into fiat currency and uses these funds to fund accounts.
Other platform tools
LenderPool — a liquidity pool that stores the funds of liquidity providers. This is a smart contract where the funds are locked up until they are used. Reward Manager — a smart contract that calculates the percentage reward for liquidity providers.
Verification manager — a protocol, created to verify the identity and source of funds of an investor/liquidity provider. This is done by Polytrade as part of business risk management. The platform must ensure that they are not dealing with illegal people or their money. To do this, Polytrade uses a Decentralized Identity (DID) verification system.