What is going on with POSI?
Position Exchange token POSI fell today after the Decentralized Crypto platform announced the release of its new Bonds feature.
The feature will be the site’s first Derivative Product. Users will be able to purchase bonds and stake them in the Bond Pool with a stable and fixed APR for a determined duration.
Once the bonds reach maturity, the issuer will pay back the investment plus interest.
The bonds will be backed by assets as collateral and will be locked in smart contracts.
Payment to investors when bonds reach maturity will be ensured and guaranteed by Position Exchange.
The POSI token declined 2.82% to $1.69 as of Monday at 10:42 am.
What does this mean for Position Exchange?
A bond is typically defined as an IOU between a lender and a borrower that includes the details of the loan and its payments.
A blockchain bond, on the other hand, is a specific type of automated bond contract whose record exists on the blockchain.
Position Exchange believes “blockchain bonds have the ability to potentially revolutionize Financial markets by creating a decentralized database of unique digital assets,” as well as “completely automating the entire bond issuance process.”
The end result would be shortened settlement and transaction times, as well as greater transparency in transactions.
Position Exchange ultimately gravitated towards bonds as its first derivate product because the company believes bonds have a “stable and predictable income stream and big market demand.”
