Plug N Play DeFi
Implementing ShuttleOne technology to Real-world usecases
What is ShuttleOne's Plug N Play DeFi?
ShuttleOne Plug N Play DeFi (formally known as ShuttleOne.Network) is the platform connecting financial services for businesses with decentralized liquidity pool.
Plug N Play is a real-world usecase for Decentralized Finance technology, created and powered by ShuttleOne
Plug N Play DeFi is powered by Metachain technology and focus on connecting DeFi liquidity to Real-world needs.
There are 2 parts of our network:
Decentralized finance system: Platforms and businesses can enable financial services within their ecosystems, providing added values to their existing system such as remittance and loan financing using decentralized infrastructure powered by ShuttleOne.
The Plug N Play liquidity pool: The liquidity pool acts as a fund to finance services that ShuttleOne is currently providing to real-world businesses in the infrastructure. Liquidity providers (LP) can add stablecoins into Plug N Play liquidity pool in order to receive an revenue generated by real world assets collateral and SZO tokens as reward.
On-Chain Risk Assesment: Risk Assessment Token (RAT, ERC721)
During the process of risk assessment and verification of cargo, ShuttleOne captures basic merchant information and tokenizes the merchantsā financial data and port operational data into a non-fungible token in RAT. RAT tokens data are stored on chain and can be easily verified by parties within the supply chain logistics platform from operations to finance.
Data Captured:
Master Bill of Laden
Customs Declaration
Packing List
Agent Agreement
Buyer/Seller Details
Invoice of Cargo
Other Logistics Operational Data
Compliance in Finance
Onchain Risk Management: Standard Scorecard
The hypothesis of the credit risk weighted model is as follows:
At any given random day towards maturity, the borrower has predicted ability to repay the trade financing
The methodology is a statistical model to predict quality outcomes of
a. Default
b. No-Default
Operational Data combined with Credit assessment of merchant provides an all round analysis of fiscal performance of credit and scoring
Let be the probability that the event occurring where , the the odd ration can be defined as
Odds= p/(1-p)
Therefore, the credit risk weighted model is as follows:
logā”(Odds)=Ī²0+Ī²_1 x_1+āÆ+ Ī²nxn
The Weighted Evidence (WE) is utilized by applying operational data correlation using the Kolomogorov Smirnov (K-S) as a performance measure against standard deviation of the calculated parameters given a coefficient for confidence that risk governance will decide over a given period of time.
Thereafter, the score card can be calculated with the following:
Score=A-B*logā”(Odds)
Score=(A-B* Ī²0+ā(-WEi *Ī²_i)
Where
Ī -operational data regression coefficient of data attributes
Ī²0-operational data regression intercept
WE-Weight of Evidence value for the given operational data
Operational Data is collected via platforms of operational partners where correlations between operational data of merchants are scored alongside standard deviation of cash flow analysis and weighted into a score percentage of a maximum of 1000 basepoints as a form of risk management combining not only credit cashflow analysis but also operational data of merchant in assessment for risk.
Aside from financial data and port operational data utilized for risk assessment, ShuttleOne also ensures process control and assessment to compliment these on-chain assessments as described below under Section 8.
Credit Application Token (CAT, ERC20)
Merchantsā data as risk assessed above are thereafter issued CAT token(s) according to the invoice of cargo requesting for credit.
The applying collateral is the Credit Application Token (CAT). It has the following metrics:
Addressable Yearly Cargo Assets: US$800mil Average Yearly Interest Rate (APY): 9% APY Trade Finance Tenure: 30 Days - 60 Days Estimated Average Trade Financing Ticket Size: US$50,000
Fiat On/Off Ramps (ShuttleSwap)
ShuttleSwap - The multichain fiat- crypto ramp supports users to cash in and out from cryptocurrencies to their bank accounts. ShuttleSwap supports 80 currencies and can exchange to any bank accounts under SWIFT, SEPA and ACH network. With ShuttleSwap, users, borrowers can easily and seamless cycle in and out of the network interacting with the products.
Last updated
Was this helpful?