The Depository Network - Can it Convince the Banks to accept Cryptocurrency?

What is the Depository Network?

The Depository Network aims to produce the “World’s First Decentralized Multi-Platform Collateral Infrastructure” – Boy, that’s a mouthful. But what does this really mean? Well, in brief, the Depository Network wants to enable all credit institutions around the world to accept cryptocurrency as collateral for fiat-based loans.

According to the Depository Network, there are more than 50,000 banks, sub-prime lenders, consumer finance companies, crypto lenders and P2P lending platforms around the world. The Depository Directory aims to reach 5% penetration in the global lending market within 7 years.

To do this, the project will provide lenders and borrowers a decentralized digital asset system whereby lenders can put up their digital assets as collateral for fiat-based loans from a multitude of lending parties. Lending institutions are expected to benefit from the opportunity to build their own depository on the network, allowing them to secure collateral that could massively multiply in value.

Main Objectives of the Project

The Depository Network has several main objectives that it sees as being the most important steps to take to provide value to the B2B finance industry.

1.     Assisting the adoption of cryptocurrencies and other digital assets by credit institutions – right now, there is a huge, unbridged divide between the traditional credit sphere and crypto world. The Depository Network wants to help make cryptocurrencies part of the business strategy of its lenders.

2.     Offering decentralization – currently, state-owned centralized systems monopolize the traditional lending markets. Depository Network looks to shake this up by allowing any lender to create their own depository, bringing power back to the people.

3.     Allow borrowers to retain ownership of their coins – The Depository Network will use multi-signature wallets where the collateral owner contains one of the keys in order to ensure that they still possess their coins.

4.     Unrivaled Flexibility – current systems of cashing out cryptocurrency is anything but simple or fast. By allowing cryptocurrency holders to directly offer their coins and tokens as loan collateral, they bypass the need to cash out, and can continue to benefit from the speculation of their holdings.

The Depository Network wants to help banks and other accredited institutions accept cryptocurrency as part of their business model.

Token Sale Details and Tokenomics

The Depository Network is based on the Ethereum blockchain. The project is based in Estonia and has a soft cap of $2,600,000 and hard cap of $15,000,000. The project is running its token sale in four stages, beginning with the pre-sale, and ending with the third stage of the ICO. At each stage, there is a 25% reduction in discount, starting with a 75% discount in the pre-sale, all the way to 0% discount for the third stage.

According to their tokenomics breakdown, the Depository Network has allocated 50% of their total supply to their pre-ICO and ICO sale rounds, whilst 26% will be held in the DEPO reserve. The remaining 24% will be distributed between the core team, advisors and expenditures for the airdrop and bounty campaigns. Out of the raised funds, the Depository Network aims to spend the bulk on marketing, sales and platform development.

DEPO tokens have a great deal of utility on the Depository Network platform, being used for lenders to set up their lending account, whilst borrowers use DEPO to pay for the storage of their collateral. The team aim to stimulate growth in token value by spreading depository platforms among lenders and borrowers to increase scarcity.

Our analysis

In our opinion, the Depository Network is a strong, if somewhat understated project. Unlike other projects that are simply trying to build a faster, better blockchain, the Depository Network tackles a real world need that could help cryptocurrency blossom as a form of value exchange.

We believe that the realistic funding goals and, roadmap and most importantly, very strong team behind the projects means the Depository Network is likely to do well in this industry.

Useful Links:
Website: https://depository.network/
Whitepaper: https://depository.network/doc/whitepaper.pdf
Twitter: https://twitter.com/deponetwork


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