The Solution: HyDRAULIC
To address the persistent challenges in IP financing, we propose HyDRAULIC: a decentralized non-custodial lending platform specifically tailored for IP NFTs that directly represent intellectual property rights. HyDRAULIC aims to empower SMEs with access to IP-backed financing and a global online market for selling and buying IP assets.
Key Features
Peer-to-Peer Lending Auctions: HyDRAULIC facilitates bespoke/peer-to-peer (P2P) lending auctions for IP-backed loans, enabling borrowers to connect directly with lenders while allowing for flexible loan terms and competitive interest rates. Through this approach we eliminate the need for multiple intermediaries, reduce transaction costs and increase market efficiency.
Peer-to-Pool Direct Lending: HyDRAULIC offers an instant peer-to-pool (P2Pool) lending option, providing borrowers with immediate access to liquidity against their IP assets. This is a beneficial feature for SMEs who are seeking quick financing to support their short-term requirements.
NFT-Based IP Representation: HyDRAULIC uses ERC721-compliant NFTs that are directly backed by the real IP collateral. IP representation through NFTs on the IP marketplace ensures verifiable and secure non-custodian ownership, transparent transactions, and verifiable value of intellectual property. NFTs have a broad technological use case in HyDRAULIC: representation of IP assets, promissory notes, and enabling fractional ownership of IP in future versions. Learn more about NFTs.
Modern IP Valuation Tools: HyDRAULIC incorporates AI and ML methodologies in its proprietary IP valuation tool. Unlike traditional methods, it is able to access real-time exchange data and market trends during IP valuation. IP Valuation on HyDRAULIC reduces the discrepancies in asset pricing and benefits both borrowers and lenders in making informed decisions about their assets and loans.
Underlying Blockchain Infrastructure: HyDRAULIC adopts blockchain technology as the infrastructure on which all transactions occur, from IP loans, buying & selling to fund transfer and storage. The IP infrastructure hence also inherits the benefits of blockchain, including efficiency, immutability and transparency. By storing IP ownership and transaction data on a blockchain, HyDRAULIC ensures the security and integrity of the information which reduces the risk of fraud and disputes over ownership and loan terms.
Tokenization of IP Assets: HyDRAULIC utilizes Real-World Asset (RWA) tokenization to represent IP assets as IP NFTs on the blockchain. As IP NFTs are held by users in a non-custodial wallet, we never own your wallet funds or IP NFTs. Tokenization provides major advances over traditional asset representation owing to its programmable nature, allowing for easy transferability and traceability of IP assets and opening up new possibilities.
DeFi Integration: HyDRAULIC integrates decentralized finance (DeFi) principles into the IP market. By leveraging blockchain and smart contracts, the platform enables liquidity providers to stake their tokens and assets, creating a liquidity pool. IP owners can then borrow funds from this pool or directly from lenders, utilizing their IP assets as collateral. This decentralized approach eliminates the need for traditional financial intermediaries and offers a more efficient and accessible financing solution for IP owners.
Our roadmap for v2 includes fractional IP ownership, licensing and registration rights, securitization of IP cashflows and more, all while continuing upon a global, efficient, transparent and democratized IP market ecosystem.
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