We are excited to announce our bold intentions to redesign the world’s largest market, the Global Bond Market, by developing an Ethereum Blockchain application that will eliminate many of the inefficiencies ingrained into the current system.

Labrys has two fundamental objectives:

1. Build the tools required to connect the current bond market with blockchain technology, allowing anyone regardless of location, income or status, access to traditional fixed income bond investments.
2. Build a platform to facilitate the inevitable transition from traditional bonds to tokenised digital bonds issued and securitised directly on the blockchain.

The Labrys platform provides value to three types of investors:

1. Small Scale Investors: Bonds are an incredibly hard investment to access for small scale investors. They are shrouded in complex regulations / paperwork and minimum investment sizes typically price everyday investors out of the market. Labrys will automate the investment process using blockchain technology to provide everyone access to bonds.

2. Cryptocurrency Holders: Labrys provides an opportunity for both large and small cryptocurrency holders to receive interest on their cryptocurrency without converting it to fiat.

3. Institutional Investors: Tokenised digital bonds will build the foundations for a more efficient and cost-effective bond market. As financial institutions and investors inevitability look to adopt this technology they will seek a platform capable of catering to their needs. Institutional investors will look to the Labrys platform as the basis for future bond market investment.

As Blockchain Technology has evolved, its disruptive power on traditional financial markets has become clear. We are fast approaching a reality where all financial instruments are securitised directly on the blockchain. Labrys is taking advantage of this opportunity by creating a platform allowing entities to create and issue bonds directly on the blockchain, thereby increasing efficiency in the bond creation and issuance process.

How the Bond Market Works:

The bond market is one of the world’s fundamental asset classes. In the bond market, debt securities are issued by organisations and governments. When a participant invests in a bond, they have entered into a contract with an entity to lend them money (principal) in exchange for a pre-established interest payment (creating a yield). This payment is received at regular intervals and the full bond value is paid back on a specific date (maturity date). Traditionally, corporate bond markets are inherently slow as constraints on bond supply limit the liquidity of the market and cause settlements to be sluggish. In terms of size, the Global Bond Market was valued at over $217 Trillion USD in 2017. In comparison, the total value of all stocks worldwide is only $76.3 Trillion and the total market capitalisation of all cryptocurrencies (although rapidly increasing) is just $200 Billion (9 Nov 17).

Current Processes:

There are a number of key barriers preventing widespread investment in bonds for smaller investors, the largest and most challenging being the minimum investment size. In addition to this investors are required to use multiple intermediary brokers and custodians with long settlement periods.
When a new bond has completed the primary issue process it can be sold and bought again in a secondary market. To buy a bond in the OTC (Over-the-Counter) market, mainstream investors usually need to go through a bond broker. The bond broker will have a trading team who can access other buyers and sellers of bonds through their OTC networks.
When a client decides to purchase a bond, the bond broker will issue a contract/confirmation note listing the details of the transaction. This action, the formal issuance of the contract/confirmation note, sets the trade date.
After the trade date, the bond will settle, typically, two days later. During this period, the investor will facilitate payment to the broker and the broker will organise the issuance of the bonds. Parties involved in the settlement are custodians, brokers, the clearing house/depository and the entities buying and selling the bond.
Labrys intends to upend this entire system and connect the issuer directly to the investor. From an investor’s perspective, Labrys will make this process as simple as clicking a button.

LABRYS SOLUTIONS

The Labrys Wallet:

The Labrys Wallet is the gateway to communicating with the Ethereum Smart Contracts which will underpin the platform. Users will manage all bond ownership from within their Labrys Wallet. It will also act as the official wallet for storing LAB Tokens which are required for use of the platform. Some common tasks users will perform from within the Labrys Wallet include:

• View portfolio balance
• View and manage bond holdings
• Receive coupon (interest) payments
• Instant bond buy and sell options
• Fund and withdraw from wallet
• Access multiple currency options (fiat and crypto)

Coupon Payments:

Just like traditional bond investments, the Labrys platform will provide the ability for user’s to receive a source of fixed income. Regular coupon payments (interest) will be paid directly to the users’ Labrys Wallet in LAB Tokens.

• Use Case:

  User wants to invest $10,000 into bonds
  User sends $10,000 worth of LAB Tokens to Smart Contract, where they are locked (100,000 LAB assuming price of $0.10) using the Labrys Wallet
  User maintains ownership over 100,000 LAB Tokens while receiving periodic coupon (interest) payments
  Labrys will collect coupon payments from traditional bonds in fiat and purchase LAB Tokens off the open market to issue to user as interest
  User wishes to sell investment and forego coupon payments. The full 100,000 LAB is released from the smart contract back to the user’s Labrys Wallet
  Use Case:
  Project A raises capital through an Initial Coin Offering, they raise 50,000 ETH
  Project A wants to protect against volatility and invests a portion of their total capital raised into bonds, using Labrys
  Project A converts 10,000 ETH into LAB and locks this up through the Labrys Wallet
  Project A now has a secure fixed income stream to fund business operations, all without leaving the crypto ecosystem and without having to trust centralised lending platforms such as Poloniex

The Labrys Platform:

Incorporated into the roadmap, Labrys is extending its platform, built on the Ethereum public blockchain, to allow the direct securitisation, funding and distribution of bonds directly on the blockchain. This will create a fundamental paradigm shift in the way debt is issued globally, away from a slow and centralised system to one which is instant, decentralised and transparent.

• Use Case:
  Company A needs an additional $5 Million of capital and decides to issue this debt in the form of a bond
  Instead of going through countless middlemen, Company A establishes terms and creates the bond directly through the Labrys Platform, where the bond will exist entirely as a digital asset on the Ethereum blockchain
  The newly created tokenised bond will then act as direct parcel ownership when sold to investors, either through third parties or directly through the Labrys Wallet

The LAB Token:

To gain ownership over bond portions, users will need to purchase LAB Tokens and lock them in a smart contract. The LAB Token will conform to the Ethereum EIP20 (ERC20) Token Standard. LAB Tokens will be the basis of the Labrys ecosystem; all services offered on the Labrys Platform will be accessed only with the LAB Token.
There will be a total supply of 430,000,000 LAB Tokens, with an initial price set at $0.10 USD per token; no further LAB Tokens will be minted. Labrys will open it’s Token Sale on 30 January 2018 and it will run for 2 weeks. To participate, users will need to register via the website, registration opens 15 January 2018.

LAB Token Monetary Value:

During the crowdsale, Labrys will be distributing LAB Tokens at a rate of $0.10 USD per token, these funds will be used to purchase bonds and further develop the Labrys Platform. Once the crowdsale concludes, the price of the token will fluctuate on the open market.
The supply of LAB Tokens will be inherently constrained as investors are required to lock LAB Tokens in a smart contract in exchange for bond coupon payments, meaning they become unavailable to be sold on open market.
A baseline of demand for Labrys Tokens will be fixed due to the ongoing need to convert traditional fiat coupon payments into LAB Tokens. This incentive to receive coupon payments will have a great benefit to not only bond investors on the platform but also existing token holders. The recurring quarterly interest repayment in the form of tokens will create an additional demand for LAB Tokens, creating price support.

Connecting Markets:

As true believers in the blockchain movement, the Labrys team are entirely committed to the success of Blockchain as a technology. As we stand on the cusp of mass adoption in 2018, this means bringing the technology and all of its benefits to the wider community. Labrys believes there is no better way to do this than to connect blockchain technology with the world’s largest market; the Bond Market. By doing this, the Labrys Platform will allow fiat currency that is currently invested in bonds to flow through to the cryptocurrency market, where bond ownership will now be faster, cheaper, more secure and transparent.

Labrys will give small investors access to the world’s largest market, while funnelling large investment capital from institutional investors into the crypto ecosystem.

The team at Labrys are excited to announce our plans to bridge the crypto world with the traditional bond market. Join us on social media to get involved in the conversation.

To further development and build the required bond portfolio, Labrys will raise capital through means of a token sale.
Token sale will commence 30 January, see website for more details.

Website: https://labrys.io
Whitepaper: https://www.labrys.io/files/labrys_whitepaper_v1.pdf
Facebook: https://www.facebook.com/labrys.io/
Twitter: https://twitter.com/Labrys_io
Reddit: https://www.reddit.com/r/Labrys_io/
LinkedIn: https://www.linkedin.com/company/18279657/
Medium: https://medium.com/Labrys
Telegram: https://t.me/joinchat/EOaaVxGU411eVcGSr1uD4g
ANN: https://bitcointalk.org/index.php?topic=2475143.0