The Depository Network is a new blockchain technology-based project which is aiming to be the world’s leading decentralized multi-platform collateral ecosystem. This platform is going to operate as a highly technological ecosystem to let lenders accept and use their digital assets as collateral.
What issues Depository network aims to resolve?
There are some important issues that Depository Network is going to resolve.
- Issues in accepting digital assets as collateral:
There is no depository for digital assets whereas real asset collateral get a variety of depository services. The financial value gets locked for a market that has huge capitalization.
- Locked financial values:
Low liquidity is a major issue that is constantly affecting the crypto industry and digital asset market. Every cryptocurrency holder needs to sell his crypto assets in order to gain the benefits associated with the value of their assets. Even selling is a risky process because high taxes and exchange fees reduces the profit and digital asset holders face a considerable loss.
- Lenders are unable to develop their own depository:
Though it seems theoretically possible, creating depository for digital assets is an expensive, inefficient, time-consuming, and out-of-scope process for lenders. Even private organizations face the same troubles when trying to create digital asset depository.
The market capitalization of the crypto coins is increasing very rapidly. New use cases of this technology are emerging every day. Most of the projects based on blockchain technology come with their unique crypto assets. These assets may be quite popular in the crypto industry but they are quite unpopular in the traditional financial industry. The crypto asset holders want solutions for using, depositing, or selling their assets. The Depository Network is offering an effective solution.
The solution offered by Depository Network:
Depository Network is going to create and offer a safe and decentralized crypto asset collateral system. This ecosystem will also support the development of numerous other collateral depository systems.
This solution will work to help digital asset holders, holding tokens powered by the Depository Network, to use their digital assets as a collateral. The cryptocurrency owners can apply for a loan and get money from several different financial institutions. This platform will also help lenders from all across the globe in easily creating depositories within the Depository Network Ecosystem. Thus, lenders can start accepting crypto assets as collaterals.
By using the solutions offered by Depository Network, every lender can have a personalized and independent depository. Lenders can apply their unique terms of controlling, accepting, and releasing collateral. The lenders can choose which currency they will accept and therefore it will be convenient for both lenders and borrowers.
Depository Network is going to launch DEPO tokens in order to crowdsource its project. These tokens will also be used as the general utility tokens within the ecosystem. Therefore, the value of DEPO tokens is expected to increase in the future. You can make a huge profit by investing in this platform.
Depository Network is introduced with a vision of turning digital assets into collaterals and providing a platform where lenders can accept cryptocurrencies to provide loans. It is addressing an important issue for which it can gain a huge response from the crypto industry.