Recap of the Polytrade AMA with Blockchain Space
On Tuesday, September 14th, we had the pleasure to welcome to our Telegram chat:
Piyush Gupta, The founder and CEO of Polytrade, and
Arul Prakash, The COO of Polytrade.
We asked them questions about the development of Polytrade.
Q~ Thanks for joining us today Piyush and Arul. Please start off by introducing yourself to the Blockchain Space community and your role in the team?
Piyush Gupta : I am the founder and CEO of Polytrade. Its great to emeet you all today. I’ve been with the finance industry for the last 15 years with experience in organizations like Societe Grenerale, Kitara Capital, AmiCorp and few other big names. I setup my own trade finance business back in 2014 and since then have expanded operations to Hong Kong, Singapore, India and Dubai. Am currently based out of Dubai. At Riqueza capital we have processed invoices worth more than 500mn USD in the last few years… All of which we are confident will move to POLYTRADE. Am an Aerospace Engineer from IIT Bombay by education.
Arul Prakash : In my official capacity, am the COO of Polytrade. I’ve been working with Fortune 10 companies in my recent past and heading product development & business transformation functions for many of my clients. Worked with companies like Walmart, CVS, Accenture and the TATA group extensively. Have been in the crypto space for the last 4 years and waiting for the opportunity to bring real world to Cryptosphere. MBA & engg by education.
Q~ Tell us what Polytrade is, how it works, and what kind of value the protocol adds to the ever expanding DeFi ecosystem ?
A~ We’re into the real-world invoice financing business since 2014 with 5000+ customers and US $ 500 m + worth of invoices financed. In our earlier venture Riqueza capital, we identified issues faced by SME suppliers like High rejection rates, high cost of funds, longer turn around time, large ticket size requirements. What led us to the launch of Polytrade is the awareness that Defi and Blockchain could help us address these problems.
In a 7 trillion USD trade finance industry, the unmet demand in trade finance is to the tune of $ 1.6 trillion. Polytrade aims to address. this huge gap by harnessing the massive liquidity of the crypto world targeted towards SMEs globally.We will seek funds from crypto native investors to use our platform to lend us stable coins. These stable coins are then converted to fiat or otherwise, and given to the suppliers, who then become our borrowers.
Polytrade is a seamless platform to connect borrowers, lenders and other stakeholders. It’s a blockchain-based, transparent, secure and rewarding pool. It provides a new asset class for crypto investors to invest in - real world invoices from grade A buyers like Walmart, IKEA etc., backed by credit insurance.
To understand how Polytrade works, watch this:
Would request all of the community to go through this awesome video which explains about Polytrade really well!
Q~ Can you share with us detailed information on the $TRADE tokenomics and it’s usecases ?
I believe this graphic addresses the TRADE tokenomics really well.
Token utility is critical for any crypto protocol. We have numerous stakeholders who will be using Polytrade’s TRADE token to participate in this ecosystem. $TRADE is the native coin of Polytrade protocol.
$TRADE is currently listed on exchanges like GATE, Dfyn, uniswap and Quickswap…
Holding a $TRADE enables:
A. Token holders
Governance: Allows validated holders to influence protocols decisions
Staking Rewards: Stake $TRADE to get rewarded
B. Borrowers: Receive reduced interest rates for staked and payment done via TRADE tokens
C. Buyers Receive discounts on invoices for settlements done on Polytrade platform
D. Service Providers: Receive TRADE for participating in trade finance economy by performing key tasks of KYC, document validation, credit evaluation and more.
You can find more details about this on :
Polytrade Token Utilities
Polytrade is marching ahead with the aim of shaping the future of Trade Finance with DeFi. Connecting all the parties involved in…
Q~ Can you give us an update on what the team at Polytrade has accomplished till date and your future plans for Polytrade ?
Talking about the accomplishments first, we released our successful IDO in the month of Aug. We are listed on exchanges like GATE, DFYN, UNISWAP and Quickswap. We released NFTs as a rare collectible to commemorate global trade and celebrate the evolution of trade finance on blockchain. We have partnered with Dfyn, Polkastarter, Gate, Formation.fi. and a strategic alliance with Polygon. Having Sandeep Nailwal, COO of POLYGON as our Advisor/investor has definitely opened up many doors for us. We have had some great investors onboard to support the project.
Watch the video here:
🎙️Polytrade x Investors' Testimonials Session
🎙️Polytrade x Investors' Testimonials Session with AU21 Capital, Axia8 Ventures, LD Capital, Router Protocol, Shima…
For the future plans, you can refer to our roadmap.
We are aggressively working on product development and MVP will be launched in EARLY OCT. We have some more exciting new partnerships to share in coming few days. Polytrade has recently partnered with “INC42 x CoinSwitch Kuber - The Crypto Summit” which is India’s Largest Crypto & Blockchain Summit on 18th - 19th Sept!
Our staking programme is already live on the website today.
QUESTIONS FROM BITCOINTALK
Q~ Are all the process of your services controlled manually or by a smart contract. How will you ensure that buyer pay up as and when due? What will happen if the buyer is unable to pay?
A~ Once our platform is live, gradually all the process will be executed by a smart contract starting from invoice financing to the collections. We will have credit insurance in place that will protect us in case of a wilful default or bankruptcy of buyer. Since the invoices will be insured, we do not have to worry whether the buyer will pay or not. As a matter of practice and to be on a safer side, we will also carry out some financial due diligence on the buyer and their financial health before financing the invoices.
Q~ Polytrade is said to be building a financing infrastructure that turns the ownership of real-world assets (“Receivables”) into digital tokens.. so what kinds of real world assets does polytrade turn to digital tokens, how does polytrade convert or turn these real-world assets into digital tokens, and after turning them to digital tokens in polytrade, what can they be used for ?
A~ Real world assets here are the unpaid invoices of the supplier whose payment is pending from their buyers. In global trade, suppliers often have to wait for a credit period of 30 - 120 days to get their payments. We aim to tokenize these invoices on our platform.
Trade finance is a century old industry that moves slow like a mammoth. We will gradually move from centralized to full decentralization in the protocol phase. So we will not tokenize invoices immediately but it is definitely a part of our future plan.
QUESTIONS FROM TWITTER
Q~ Many have recognized the potential of DeFi but few have been able to harness and exploit its use cases. How will Polytrade change this and give it value and use by allowing it to tap into the huge pool of crypto liquidity and address the gap in accounts receivable financing by providing SMEs a new source of financing?
A~ As we mentioned earlier, we have been in the traditional business of Invoice financing for the last 7- 8 years. We had realized the problems and loopholes in the system right then and launched Polytrade backed by DEFI to address the underlying problems and an unmet financing gap of $1.5 trillion. Polytrade being backed by an experienced team in domains of Tradefinance and crypto along with a constant support from our investors and partners specially Sandeep Nailwal, Polygon COO and Cofounder will definitely be able to shape the future of trade finance.
Q~ What makes your feel confident about the survival of your PolyTrade in the near future? do you take into account community feedback and demands while developing features of your project?
A~ Great Question. Polytrade is not a random idea which is being built as a fad by our team. Our team is specialized and skilled to address issues in Trade finance and digital solutions.
The problem we are solving has existed and evolved over centuries and will continue to exist. Our solution is being built on Polygon specifically to address the technology needs of a blockchain based trade finance application. And similarly, the business processes have been heavily enhanced to accomodate digital and automated resolution.
And all of this is being made by possible community feedback. Not just our telegram or Twitter community, but cased on inputs from the 500 customers we have partnered with in the past.. from the various advisors, investors and entrepreneurs in the Crypto space. All inputs are taken and our products improves steadily to suit all future needs.
Q~ What is the way to spend crypto in your ecosystem? How do you balance developing technology and also improving the value of your token?
A~ $TRADE has various utilities. For all the token holders, they can Stake $TRADE to get rewarded.
They can participate in Governance which allows validated holders to influence protocols decisions
Polytrade’s alliance with Polygon will significantly help us scale our operations and visibility. As a leader in this space, we are certain that Polygon’s cooperation will take us in the right direction in terms of technology and help us achieve our vision with more impact. As Polygon eveloves, Polytrade will evolve along. That is the power of partnership. 🚀
QUESTIONS FROM TELEGRAM
Q~ How is open account trade invoices secured with insurance? How to collect overdue invoices?
How is the insurance function fulfilled for the insurance supported investments? I don’t know exactly. Will both buyer and seller be protected by insurance support in Polytrade?
A~ Overdue invoices are collected from Buyers only… Any late fees for the delay is actually collected from the Supplier.
Insurance is actually taken against the invoice, where Polytrade will be loss payee. This ensures that in case of bankrupcy or willfull default of the buyer, Polytrade gets the first access to funds which in turn are given to the lenders to fund the invoice.
Q~ Could you provide detailed information about what methods and/or strategies Polytrade implements to minimize and/or fully resolve the existing gap in accounts receivable financing?
A~ As we always say, we are not a startup. We have seen and worked in this space for more than 7 years. We know the pulse. We know how to educate SMEs with this alternate source of finance. We will continue to use our expertise and keep onboarding more and more SMEs. We intend to tie up with large buyers and do reverse factoring where all suppliers can get finance.
Q~ I’d like to use lending and borrowing platforms to generate passive incomes, but it’s difficult to find a good place to do so. Can you tell us how good Polytrade’s lending and borrowing ecosystem is? What is your Annual Percentage Yield (APY) or Annual Percentage Rate (APR)?
A~ Our APYs will be dynamic and will be released during launch. We do expect market competitive APY to be given to our investors… Most important of all is that the APY is going to Crypto-winter proof. Even in bear phase, our APYs will be similar, as our borrowing is backed by real world invoices.
Q~ Is this platform suitable for beginners Or does it only appeal to professional users ?
A~ The platform is a B2B2C model.. on lending side we will be catering to entrants in the crypto space and will have similar experience, if not better, as in Aave, compound, etc.
On the borrowing side for traders, we intend to make it crypto-n00b proof… super simple even for people who dont understand crypto. User experience is a critical piece of our product.
Q~ What are the main reasons why Polytrade focuses on bringing real-world assets into the crypto world, is this due to the lack of transparency, security and asset manipulation that are evident on a daily basis in real-world assets or not?
A~ Definitely all the points you mentioned. But more than that, can we help someone? Can Defi change the way SME operate? Can we strengthen a country’s backbone (SME) by making it self sufficient? Can we bring some real world, doubly secured assets to crypto investors? So yes, we do have many reasons.
Rarely you see real world people getting hands on crypto. This is a big step and we hope to inspire many in future 😇
Thank you all for your interest about Polytrade!
We request all community members to particpate in our staking program and join the awesome community of Polytrade!
$TRADE Staking Program with attractive APY: Now live on polytrade.finance
The most awaited moment has finally arrived. We are very delighted to announce that the Polytrade Finance Staking Program is now LIVE on…
It’s really nice having the Polytrade project in here!!!
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