Our goal is to build foundational technology and create building blocks for the next generation of decentralized and open finance. Unlike other DeFi projects, Pledge is designed to allow the creation of innovative structured and collateralized lending products. These include fixed interest rate swaps, refinancing, and financial derivatives around credit markets in order to allow investors to build diversified portfolios tailored to whatever level of risk exposure they are comfortable with. These kinds of markets do around $500 trillion in trade volume every year. Innovations in fixed yield vaults, variable yield vaults, tokenization of yields, and seniority of bonds - represented in Pledge using financial NFTs - gives Pledge a unique position as a “Lego building blocks” maker, improvising capital efficiency and reducing liquidity friction.
Pledge provides a suite of decentralized financial contracts, defined as financial NFT, hoping to facilitate its use and adoption as an integral part of the fixed income money market. These derivative trade smart contracts, which typically swap fixed-rate interest payments for floating-rate, interest payments are an essential tool for defi investors who can use them in an effort to hedge, speculate, and manage risk on or cross chains.