Persistence provides a platform to power Debt Marketplaces that match entities with surplus capital (lenders) to entities that require capital (borrowers). When a company borrows money to be paid back at a future date with interest it is known as debt financing. It could be in the form of a secured as well as an unsecured loan. A firm takes up a loan to either finance working capital or an acquisition. Before telling you more about Persistence, let’s understand Debt Financing first.
What is Debt Financing?
Debt financing is a time-bound activity where the borrower needs to repay the loan along with interest at the end of the agreed period. The payments could be made monthly, half-yearly, or towards the end of the loan tenure. Another important feature in debt financing is that the loan is secured or collateralized with the assets of the company taking the loan. This is usually part of the secured loan. If the loan is unsecured, the line of credit is usually less.
Core issues of Persistence
Persistence was created keeping in mind the very specific requirements of Institutional Open Finance. Some of the core issues that Persistence addresses facilitating institutional adoption:
Identity
Institutional end users are skeptical of revealing their identity for multiple reasons including not giving away alpha while performing trades. However, identity needs to be verifiable in case of dispute between counterparties or illicit activity
Transaction Details
Similar to privacy considerations for identity, transaction details need to stay private to prevent leakage of alpha
Legal Compliance
Service Level Agreements (SLAs) are executed with Validators regarding data privacy, access, and leakage. The ‘Trader Onboarding’ module of the Persistence SDK integrates with various real-world third party KYC/AML databases, the results of which are logged on the chain for immutable storage
Settlement
The ‘Trade Settlement’ module of the Persistence SDK interacts with regional banks and their payment interface to handle fiat on/off ramp transactions. To maintain the audibility of the deposit and redemption transaction, each transaction is reflected on the chain with the transaction proof hash.
Gas Payments
Usage of dApps typically requires the acquisition of crypto assets to pay for gas, which can be highly variable and expensive. This causes unnecessary friction for the end-user. In Persistence dApps, depending on the business requirements, IOU (‘I owe you’) tokens with no monetary values are provided to the end user’s wallet to allow easy usage of the dApp (this is done to prevent transaction spam). The IOU tokens function as a performance metric for validator (dis)incentivization and are leveraged for monthly billing calculations.
Wallets And Key Management of Persistence
Default multi-token (FT, NFT, Interchain) burner wallets linked to anonymized identity and not private keys allow for multiple keys to be associated with the wallet and operate it. Each device the user logs into can generate its key secured by hardware and linked to the identity without a need to export one key across all devices. A key/device, if lost, can be revoked from the identity thereby also allowing for temporary/role-based access to the wallet and recoverability.
Debt can be used to finance a wide variety of business activities including working capital (to acquire inventory, for example), capital expenditures (such as to finance equipment purchases), and acquisitions of other companies, to name a few. With Persistence’s help, you can grow your investments with a stable entity. Without further due, Join Persistence and take a leap of bounce.
Learn more about the project:
Website — https://persistence.one
Whitepaper : https://persistence.one/static/media/whitepaper.aa159390.pdf
ANN THREAD : https://bitcointalk.org/index.php?topic=5323374.0
Linkedin : https://www.linkedin.com/company/persistenceone
Medium : https://medium.com/persistence-blog
Twitter — https://twitter.com/PersistenceOne
Telegram — https://t.me/PersistenceOneChat
Discord — https://discord.com/invite/SaBKpjbnhH
Youtube — https://www.youtube.com/channel/UC5wqI1ZRdkCjWWVOCQdhxLQ/featured
Reddit : https://www.reddit.com/r/PersistenceOne
Authorship
Proof Of Registration Link : https://bitcointalk.org/index.php?topic=5330574.msg56895857#msg56895857
BitcoinTalk username : morendx_77
My Bitcointalk Profile Link : https://bitcointalk.org/index.php?action=profile;u=1965346
Persistence address: persistence1kc4xrrtkuz4v72ycv9thx3pxavpzvrxhdj2tc9
USDT address : 0xf5cfCA955237F31a1112C9E566cedC7fe4F03995