Porter Finance Team Returns for Second Shot at DeFi Bonds Project
Months after Porter Finance was shut down, three of the four remaining team members say they still feel the potential for on-chain bond issuances to be huge.
After months of inactivity, three members of the founding team behind now-defunct decentralized finance (DeFi) bonds project Porter Finance have relaunched their platform on Monday.
Arbor Finance is a protocol that enables decentralized autonomous organizations (DAOs) to raise money by borrowing against their native tokens with no liquidations and at fixed interest rates through tokenized DeFi bonds.
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ICOs have been the hot new thing this year, but what if we said there’s another way of raising money right below your nose? That’s right: bonds are an attractive alternative to ICOs, and they offer DAOs another way of funding growth. In exchange for lending to these entities, you’ll receive high fixed yields on your bonds.
“We expect lenders of Arbor’s bonds to earn 10%-20% APY,” said co-founder Russell Bookland in an email.
DAOs can borrow funds at fixed interest rates without the fear of liquidation by using their native tokens, which make up the majority of their treasuries. Borrowers on other Protocols must maintain a particular collateral ratio or risk being liquidated.
Porter Finance shut its doors in July, citing a lack of demand amidst a market-wide price decline and waning sentiment about the long-term growth of cryptocurrencies. At the time, Porter said this was because interest rates in traditional finance were competitive and because there wasn’t much DeFi adoption.
With the improving market sentiment, some of our core team members say there’s still a market for our product.
“Three out of the four team members at Porter believe that the potential for on-chain bond issuances is a huge market,” Bookland said. “The potential for high APY for lenders and non-dilutive funding for DAOs is a massive opportunity to take advantage of. That’s one of reasons we decided to build Arbor Finance with a fork of Porter code.”