A powerful design in DeFiner 2.0 is our Initial Loan Offering (ILO), which is a crowd-funding mechanism for blockchain start-ups and projects who want to raise money through our platform using debt.
ILOs are ‘crowd funding through debt’, because projects can lend money from DeFiner and use it as collateral to borrow against. An ILO can then borrow money from our lending market and use their tokens as collateral to borrow against. An ILO allows a project to raise funds through debt by issuing their tokens as collateral to raise funds through the DeFiner protocol.
Our ILO system is different than an IDO (Initial DEX Offering) in that, instead of selling tokens in a pre-sale, where only high-value investors get exclusive access to new projects at a discounted rate, our DeFiner community gets first access to new projects launching on the DeFiner protocol.
Projects will also be able to lock up liquidity using their tokens as collateral and later sell them on a secondary market at a higher price, making it not only attractive for retail investors, but for projects who want to raise money for their project in a much more effective debt market mechanism of DeFiner 2.0.
DeFiner will be able to help projects raise money from our/their communities by helping them distribute tokens to as many community members as possible. And in return, ILOs will have very little risk because at the end of their default, the community will get a discounted private sale price.
And for the lender/community member that doesn't really have the opportunity to access a project's primary market token before its listed, will now have the opportunity to get a projects' token as interest paid as reward, and enjoy the appreciation of a token before its listed on a secondary market or exchange..
Advantages of an ILO:
- Allows projects to lock up liquidity and sell their tokens at a better price once it is listed
- Projects can borrow money from our lending market and use their collateral to borrow against
- Get project tokens as rewards for lending
- Get project tokens at a discounted rate
To learn more about DeFiner 2.0, click here.