Lets admit it, we’ve all been there, we've all been Squidward, whether it was in 2019 during the bear season or after. We’ve all been in that moment where we put money in a shitcoin and it dumps or just lingers there — poking it with a stick to do something, and you know you haven't made a loss until you sell, so you Hodl. And your friend who trades stocks with Robinhood, yeah that guy, who just discovered trading a few weeks ago but has been crushing it since. Its in that moment that you, the expert trader, just made a dumb move to go all in on your shitcoin and you made the wrong move. Most of us find ourselves in this moment, with no extra capital to spare, yet stocks are bullish as hell. Wouldn't you want to have a way out?
That was until Bridge Finance came along. Bridge Finance is designed to solve exactly this problem. Lets be honest gains are gains, whether from crypto or stocks, we want to make the most of the market opportunities and chase them both. Bridge Finance will allow you to invest in both markets at the same time, without forking out additional capital.
The application is not exactly new. Crypto traders have always been able to get loans from the tokens they put up as collateral, and then use that loan to buy more tokens. Instead we allow you to get a loan, and then be able to use that loan to buy rights to a stock of your choice. And it doesn't even have to be a whole stock, you find a contract that matches your liquidity. Its a market of contract creators (makers) and takers. The stock owner is the contract creator, whilst the crypto trader is the taker.
How it works — Equity Swaps. Equity Swaps may sound new to the crypto world, but this financial derivative has always existed in traditional markets for decades. Equity Swaps allow you to buy rights to a stock or commodity or asset, for a period of time. During the period of time which you own the rights, any gains that stock or asset makes belong to you, so do the losses. The crypto trader (contract taker) pays a small fee known as floating leg to the contract creator to buy the rights, an amount of LIBOR rate X stock value, only for the period of the contract ~ 30 days or so. Consider it renting a stock!
All this is done in a none custodial way, you own your wallet keys and dont have to hand them over to our platform. You simply connect your wallet, transfer your shitcoins to our debt pool/lending pool smart contract, get a loan, go look for a stock contract you want to take up, deposit the required BFR tokens as collateral to our swaps smart contract, and instantly the stock rights are yours.
Our team are developing a proprietary engine called the Switch Protocol which runs on the Ethereum blockchain. It handles all the back-end logic needed from contract creation to settlement. Switch protocol supports layer 2 solutions for cheaper and faster off-chain transactions (currently testing using Loom hosted layer 2 solution). It supports interoperability with all other major chains.
On our platform, not only are crypto traders able to bridge to stocks, but stock traders are also able to bridge to crypto and unlock hedging or other benefits. Using Bridge Finance you no longer have to miss out on any opportunity in either market, our goal is to make it a thing of the past. Just like that, Squid can come out to play! https://www.bridgefinance.net