Porter Finance closes bond issuance platform

Porter Finance closes bond issuance platform

Decentralized Financial Institutions (DeFi) – Porter Finance announced that it will close its bond issuance platform after only 1 month of issuance.

On July 5, Porter Finance – a decentralized financial institution (DeFi), a protocol based on the Ethereum blockchain, announced that it will close its bond issuance platform after only 1 month of issuance.

Porter Finance closes bond issuance platform

Explaining this, Porter Finance said that currently there is not a large amount of lending demand for fixed income DeFi products like those offered through the platform. As well as the fact that Porter Finance cannot accept the legal risks associated with the bond offering.
Last month (June 6), Porter Finance revealed its first service in partnership with Ribbon DAO to issue 3,103,224 convertible bonds. Investors can exchange for 1 USDC on the maturity date (December 4). At the time, each bond was issued at 0.9667 USDC with a yield to maturity of 7% after interest.
Additionally, each bond is secured by 16,112 Porter Finance tokens ($4.78 at press time June) and is convertible to 1,111 RBN. The instrument also has a significantly higher borrowing cost than the market for issuing and trading short-term debt securities of the same maturity.
Recently, due to the demise of notable DeFi lending platforms like Celsius, investors can’t seem to take the risk to borrow and lend on decentralized protocols.
According to DeFi Llama, since the beginning of 2022, the total value of lending platforms has decreased by nearly 70%. Portal Finance is expected to continue operating until all DAO Ribbon lenders redeem or convert their bonds.

Leave a Reply

Your email address will not be published.