The Balance team has been hard at work over the past weeks and is happy to finally announce their very latest DeFi offering, i.e., Liquidity Vaults

Liquidity Vaults

Vaults, or technically, Liquidity Vaults are financial products that provide DeFi protocols access to investors and their capital. Vaults are therefore platforms through which DeFi protocols can access financing and for investors to earn handsome rewards.

As we launch Vaults, each DeFi protocol seeking financing will be able to create a Liquidity Vault to raise capital. To ensure transparency, and protect the interests of the investors, each Vault will be needed to be accompanied by supporting documentation, the amount of financing sought and the return that DeFi protocols owning the vault will provide to investors. Each Vault will reward the investors with pre-defined APRs on the investment tokens - so investors can make informed decisions before they deposit their tokens to the Vaults.

Balance is excited to announce the launch of USDB Investment Vaults on the Fantom Opera Network on 5th October. We are also thrilled to share that our first vault will be in partnership with Takepile.

The Lifecycle of the Vaults

Vault Creation

Vault creators will be required to accept strong terms and conditions before opening a new Vault. They will also be required to provide their names, contact information, and wallet addresses. Additionally, each Vault will also require to provide the amount of financing that they wish to raise, the deadline for when the fundraising period will close, and the terms of the financing which include yield offered, repayment date, and investment currencies.

Vault Financing and Completion

Once the fundraising period has passed, the total financing provided by investors will be provided to the vault creator’s wallet, and the receipt tokens will be issued to the investors representing their share of the Vault. The receipt tokens will be a tradeable and transferable NFT. Also, the vault creator will not be able to access the funds until this point in time.

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Balance Takepile Vault

Repayment

In order to ensure that the receipt token/ NFT is not deemed to be a security, the token/ NFT will only be redeemable on a single date. On this date, the investors will be able to redeem their token/ NFT for their capital plus APR.

About Balance

The Balance Ecosystem encompasses a wide range of innovative products and projects that are and will be operating in various areas of DeFi and Web3 technology.

Balance is poised to build bridges between the theoretical and practical sides of finance so that there is a means by which we can provide real-world solutions and create value-driven products within the web3 space.

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