Use Cases of CR Square Finance
The CR Square Finance Platform offers multiple use cases to various stake holders:
Freelancers/Small and Medium Business Owners
Freelancers/SMB Owners can raise invoices through CR Square DEFI Books and receive payments from customers across the world within minutes. Further, they can avail CR2 tokens as incentive during initial years of adoption. Freelancers/SMB Owners can convert the stable coins into fiat using third party integrations embedded into the CR Square Finance Platform. Over the period of usage of the platform the users will be assigned a credit rating based on which they will have the option to avail Uncollateralized loans subject our CR Square Finance DAO approval. Even the customers who are making the payment can utilize invoice finance by way of depositing digital assets as collateral without the need to sell their digital assets even during bear markets.
Tokenized Blockchain Projects
There are more than 18,000 tokenized blockchain projects across the world. Typically these projects exhaust the funds raised for the development of the project in a span of 12-18 months, after which the teams sell their allocated tokens in the open market to fund development of the project, which in turn leads to fall in the price of the token, devaluation of the project and the impact is considerably higher during a bear market. In the Blockchain space the project attracts more adopters as long as the price of the token appreciates in value, selling of team tokens create adverse impact on the adoption of the project. CR Square Finance provides an opportunity for these projects to list their token as collateral subject our CR Square Finance DAO approval. Tokensied Blockchain projects can find a breather in making regular payments for their development expenditure including salaries, rent, marketing and other costs. The Blockchain Project has to in turn compensate the DAO gCR2 holders with an airdrop of their tokens for getting the proposal passed.
Venture Capitalists
Currently in the web3 community there is lack of transparency as to how the raised funds are being spent by the blockchain projects. There is no method of tracking how the raised funds are spent for the development of the project. In addition the Blockchain projects raise funding across the world which becomes a bottle lack for most the VC's to keep track and oversight over the founders of the project. Blockchain project founders who raise funds in millions of dollars can sometimes tend to irrational spending decisions, which ultimately leads to failure of the project by exhaustion of the funds too early. CR Square Finance Escrow facility powered by smart contracts provides the VC's control and oversight over the utilization of the funds. The Raised funds will be held in a Escrow pool, which are released subject to request made by the founders on receipt of Invoices for various expenses including Payroll after authentication of the data by the VC's. This ensures transparency and better development and growth of the project and build better relationship and trust between VC's and Blockchain Projects.