dexFreight, MakerDAO, And Centrifuge Complete Pilot To Connect Multi-Trillion Dollar Logistics Industry With DeFi

dexFreight, Centrifuge, and the Maker Foundation have tokenized freight invoices to use them as collateral for accessing liquidity and filling short term financing gaps for trucking companies. The pilot, conducted on top of dexFreight’s network platform, connects logistics collateral to the lower cost liquidity available in Decentralized Finance (DeFi), a new financial ecosystem based on decentralized networks and open-source software.
The 8 trillion-dollar global logistics industry is cash flow intensive and requires expensive and illiquid assets such as trucks, trailers, warehouses, etc. Very often carriers must finance the transportation of loads to cover, fuel, maintenance, and driver expenses like food and shelter. Trucking companies, however, don’t receive payment until long after shipment is delivered – on average 37 days in the US market.
For an industry in which 97% of trucking companies own 20 trucks or fewer, this lack of access to capital represents a problem. Trucking companies must sell invoices to factoring companies, who charge on average 3% of the total invoice value.
In order to offer an inexpensive alternative to factoring, this pilot proves the feasibility of connecting trucking invoices with the lower cost instant credit of DeFi. The logistics industry’s invoices can now be used in the DeFi ecosystem as collateral for short term financing.
“This is the first step towards a transformation of the logistics industry, and we could not have realized such a milestone without our partners Centrifuge and the Maker Foundation. We can now reduce friction, extend instant credit lines, and offer highly competitive rates to dexFreight platform participants,” said Justin Banon, dexFreight COO
In the pilot, a third party logistics provider agreed to pay on 45 day terms a carrier who opted to finance the shipment invoices using the dexFreight platform’s ‘dexFi’ feature. dexFreight then used the Centrifuge node to mint an ERC721 (non-fungible) tokens as digital representations of the invoices. Using Tinlake an ERC20 token representing the combined liquidated value of the assets were minted and used as collateral for the Maker CDP to borrow DAI against it.
The carrier received DAI to their Coinbase account. They could then either cash out to their bank account or hold the funds in DAI. The total advanced in the pilot was $1,600 at 70% loan to value (LTV), the ratio of a loan to the value of an asset purchased.

“I’m excited to see dexFreight leveraging Centrifuge to provide liquidity to their users, by accessing decentralized sources of capital through Maker. We are looking forward to scaling this partnership to the next level, supporting entire supply chains,” said Martin Quensel, COO of Centrifuge.
The next planned phase of the project, provided all conditions are met, will aim to tokenize invoices that can ultimately be used as collateral for Multi-Collateral DAI.

“This pilot is validating our mission and demonstrating how Maker is shaping the future of commerce. We see the potential in supporting a wide range of asset types that can serve the logistics industry as well as our Community,” Greg Diprisco, Head of Business Development at Maker said. “The future is near!”

The next step in the decentralisation of movement of goods
dexFreight is building the universal decentralized, open-source network for collaboration and coordination in the movement of goods. dexFreight facilitates lower cost access to liquidity to the supply chain and incentivize the equitable distribution of value.
The platform enables parties to move goods faster and with transparency for all actors. Safer transactions, auditable and traceable chain of custody, as well as data accuracy usher in a new era for logistics providers. dexFreight connects the logistics industry to accessible and competitive Decentralized Finance (DeFi) Capital, solving the industry’s historic liquidity issues.
Taking the financial supply chain to a new level
An open network that connects businesses in global supply chains,  Centrifuge enables them to exchange business documents in a private way while allowing for an immutable single source of truth for said documents. In addition, it provides users with the possibility to create a digital representation of the assets exchanged on the network, in the form of Non-Fungible Tokens (NFTs). Tinlake is the first dApp to run on Centrifuge.
MakerDAO is a decentralized organization dedicated to bringing financial stability and transparency to the world economy. Its purpose is to create an inclusive platform for economic empowerment — MakerDAO strives to unlock access to the global financial marketplace for all. MakerDAO enables the generation of Dai, the world’s first unbiased currency and leading decentralized stablecoin.
Source: Crypto Daily

Rise In Bitcoin Price Could Help Blockchain Real Estate Revolution

A little over one year ago The Keyes Company announced only the third ever Bitcoin real estate transaction in Florida.
While the price of Bitcoin was down from the golden era of late 2017, it was still valued at over $10,000 during that month of February when the Florida Bitcoin real estate deal was hitting the headlines.
The Miami townhouse eventually sold for $338,878, paid for in cryptocurrency. A new era was dawning, or so we believed.
Price fluctuations
Although the value of Bitcoin was still at a healthy level, especially looking back today with hindsight, and the price fluctuations certainly weren’t as bad as they would eventually become it’s still something that both buyer and seller had to take into account when carrying out the deal.
Manuel Perez, part of the real estate team involved in listing the project commented at the time that “the value was set in dollars, and the number of bitcoins was determined at the moment of the closing.

“We negotiated with the buyer to have a fluctuation limit during the period of transfer, as a safeguard for both sides against a sudden crash or spike. Luckily, while there was some fluctuation, it was minimal by the time of receipt, and everyone walked away happy.”

Fast forward one year to February 2019 and things have changed. A lot.
Bitcoin was valued at under $4,000 for the second month running and for only the second time since July of 2017.
Another bull run on the horizon?
Even the most optimistic Bitcoin supporter would be hard-pressed to claim that the drop-off we’ve seen in the second half of 2018 and into 2019 hasn’t had an effect on the way the real estate markets approach to crypto has changed. After all, a new technology needs all the help it can get when trying to disrupt an industry that’s operated the same way for decades.
Thankfully, it seems that things are looking somewhat positive for the moment, with Bitcoin seeing a respectable uptick in value over the past week. Will it be the start of another bull run? It’s hard to say.
What we can say is that positive news for the crypto and blockchain industry can only be a good thing for those who are fighting the good fight for crypto in the real estate space. Companies such as B11G, who are currently using a blockchain-powered crowdfunding model to realize their plan of creating a 38 unit, 4,126m2 industrial building mere minutes from the center of Tallinn, the capital of Estonia are one such example.
Using a unique Initial Loan Procurement (ILP) model, B11G are taking the concept of real estate crowdfunding and adding a blockchain-powered twist.
While the price of Bitcoin won’t directly affect the success of such projects, the positive outlook and enthusiasm that the industry receives from such news certainly won’t hurt.
Source: Crypto Daily

The Secret To Great Design? Great Performance

Three Crucial Principles Are Often Forgotten During the Design Process, Especially in the Crypto Industry
It often seems as though startups in the crypto and blockchain space operate in a little bubble.
We see the use of jargon, tech-speak, and what could be described as “industry chatter” at the forefront of many projects, which is fine… to a point.
However, there comes a time when we have to step outside of the industry bubble, move away from the comfort zone where our peers “get us,” and where we exist as a tech company first and foremost.
Where discussing the actual technology itself often takes precedence over the reason why we got to this point in the first place:
Providing a solution to a problem.
If we’re not solving problems, then why are we even bothering? At that point, it becomes nothing more than a vanity project, designed by tech enthusiasts for tech enthusiasts.
If we’re in the business of problem-solving, how we approach design and user experience matters.
A lot.
The secret to terrific design isn’t determined by how slick we think our product looks, or by how many high-tech bells and whistles we can apply.
The secret to great design lies with great performance, and great performance is only ever determined by the ease with which the end user can access the service and get value from it.
There are three key principals to keep in mind when designing any product, factors that will help keep you and your team on the path that ensures functionality above all else.
Clarity
Possibly the most critical aspect is clear design, which is usually the first to be lost in the quagmire of over-thinking and over-design.
The very thought of buying and selling cryptocurrency is enough to give many people nightmares, but if introduced to the Coinbase website or mobile app, they’d be forgiven for wondering what all of the fuss is about.
A few years back, the company redesigned the app and unveiled a new dashboard for their users, based entirely on feedback and statistics gleaned from those who use their platform regularly.
Coinbase made it easier to check the latest prices of popular cryptocurrencies and to keep track of your portfolio.
Many exchanges are geared towards the crypto enthusiast, with novice users feeling overwhelmed and intimidated by the experience. Coinbase recognized this fact, and by keeping their design simple, they created an intuitive system which is very clean and user-friendly.
There’s a reason why Coinbase is referred to as the easiest place to buy and sell digital currency.
Designers should always look to create a process where users know what they’re doing and where they are throughout the process, never implementing functionality over aesthetics.
Consistency
Once a user becomes comfortable with their environment, the last thing you want to do is have them experience a sudden change. There are few surer ways of having potential customers leave your site, most likely forever.
Maintaining a consistent experience across all user paths is crucial, and in an era where we see users needing to navigate between four or five different applications to carry out what should be a simple transaction, this is still a huge problem.
Some newer startups are addressing these types of issues though, with ATRONOCOM offering a decentralized app that offers, under one roof, what usually requires a number of different apps, while the recent purchase of blockchain startup Neutrino by Coinbase is being touted as an acquisition that should help the exchange add more cryptocurrencies and features to its current service.
Consistency is a strength that sees some of the most successful companies on the planet maintain and grow their user base, including the likes of Apple, Google, and Microsoft.
Listening
You should know who your target audience is, and not just so that you know where to find them and sell them on your product or service.
You should always be listening, identifying their pain points, understanding their needs, and modifying your product to suit those key areas.
You may believe that the font you’ve used, or the homepage layout you’ve spent hours perfecting is a thing of beauty.
If your target audience disagrees, you can’t be too proud to make the required changes. If an aspect of your design frustrates or turns your audience off, then it’s no good, despite what you may think personally.
Great design isn’t complicated. It’s just that many companies make it seem that way.
Source: Crypto Daily