IP Valuation

Traditionally, intellectual property valuation has been a complex and subjective process, relying heavily on the expertise of appraisers and the specific context of the transaction. This subjectivity creates challenges in the IP financing landscape. Lenders require a reliable method to assess the underlying value of IP and IP NFTs to make informed lending decisions. Borrowers, on the other hand, need a fair and transparent valuation system to unlock liquidity for their endeavors.


Valuation Methods on HyDRAULIC

To address these challenges, HyDRAULIC provides multiple approaches for IP valuation:

  1. Independent Third-Party Valuations

    • IP owners can publish existing independent valuations from external valuation firms.

    • These valuations must be attested by the valuation-reporting firm directly on the platform to be recognized.

  2. Partner Law Firm Valuation Services

    • HyDRAULIC has established partnerships with law firms specializing in IP valuation and consultation.

    • IP owners can directly engage with these firms for valuation services.

    • These valuations are automatically accepted on the platform, as partner firms attest to their accuracy.

  3. Decentralized Oracle-Based Valuation

    • HyDRAULIC introduces a groundbreaking IP Valuation Oracle, aggregating valuations from a distributed network of independent IP lawyers and professionals.

    • This oracle methodology provides a verifiable, transparent, and cost-effective valuation process.

    • The aggregated nature of this system ensures a broader perspective, reducing reliance on a single valuation source and improving overall fairness.


AI-Driven Valuation & Risk Analysis

HyDRAULIC employs an AI and algorithmic valuation tool to refine valuation inputs from all sources. This system:

  • Analyzes market trends and industry data to ensure standardized pricing.

  • Incorporates risk assessment based on due diligence details from IP owners and businesses.

  • Determines risk rating and maximum loan value for loans and sales on the protocol.

This additional layer ensures that valuation data is reliable and aligned with real-world conditions.

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